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2017 (12) TMI 118 - AT - Income TaxDenial of exemption u/s 11, 12 and 10(23BBA) - proof of certificate of registration - Held that:- At the time of making the assessment for allowing exemption u/s 11 and 12, the assessee should furnish the proof of certificate of registration being granted by the Ld.CIT. In the absence of furnishing details sought by the CIT and thereafter no correspondence with the income tax authorities demonstrates that the assessee has not shown any interest in pursuing the registration further, hence, we are inclined to believe that the assessee has not submitted the clarifications and did not prosecute the assessee’s case for granting registration u/s 12AA. The assessee failed to establish that the Registration was granted in its case or complied with the requirement for granting the Registration. The Ld.AR referred the assessment order for the assessment year 2006-07 wherein the AO has allowed the exemption without verifying the status of registration and committed an error and we do not incline to continue the same mistake. Accordingly we uphold the order of the Ld.CIT(A) and dismiss the appeal of the assessee on this ground. Granting of exemption u/s 10(23BBA) - Held that:- The assessee stated that the temple trust was taken over by the endowments department and requested for granting exemption u/s 10(23BBA), but the assessee did not place any evidence to show that the temple trust was constituted by any of the central /state provincial act as required under section 10(23BBA) of the act. Therefore we do not find any infirmity in the order of the Ld.CIT(A) and the same is upheld. Corpus funds required to be excluded even if the assessee trust is treated as AOP from the purview of the income - Held that:- The resolution passed by the trust is for application of it’s receipts in the manner in which the collection required to be utilized but not the mandate of donors as rightly observed by the Ld.CIT(A). Further the hundi collections are voluntary contributions which cannot be excluded from the definition of income u/s 2(24)(iia) of the Act. The specific purpose donations are excluded by the amendment made in the Finance Act, 1987 w.e.f. 1.4.1989. Therefore, all the voluntary contributions received by the assessee are taxable within the meaning of section 2(24)(iia) of the I.T.Act if the registration u/s 12A is not available to the assesse. The courts have held that the specific purpose or tied up grants are excludible but the assessee has not placed any evidence to show that the hundi collections are received for specific purpose. In addition to the above as held by CIT(A), the hundi collections are also included in the receipts and payments account. The assessee has not produced the balance sheet and demonstrated that the corpus funds are tied up grants and received for capital purpose.
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