TMI Blog2014 (3) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... e and as assessee continue to involve itself in charitable purpose for the help of physically handicapped persons and was receiving grant in aid from Govt. of Maharashtra – the AO’s observations that assessee changed the memorandum of association so that fresh registration is required does not hold good – thus, the order of the CIT(A) upheld – Decided against Revenue. - ITA No. 5802/Mum/2011 - - - Dated:- 19-10-2012 - Shri I. P. Bansal And Shri B. Ramakotaiah,JJ. For the Petitioner : Shri Rajarshi Dwivedi, DR For the Respondent : Shri Vipul B. Joshi ORDER Per B. Ramakotaiah, A.M. This is an appeal by the Revenue against the orders of the CIT (A)-1 Mumbai, dated 8.5.2011. We have heard Ld. DR and Ld. Counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned the provisions of section 11 of the I.T. Act. AO was of the opinion that assessee is not behaving as a charitable organization and the character and focus of assessee has become commercial. For these reasons, AO denied the benefit of section 11 and assessed the income at Rs.78,34,490/- by considering the corpus receipts as income of the year in addition to the surplus in the income expenditure a/c. 3. The learned CIT (A) after considering the submissions of assessee and examining the record gave a finding that assessee had mentioned exemption under section 10 in the computation statement only whereas in the return filed, assessee claim was under section 11 only. Since the column pertains to section 10 was struck off and deduction cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to assessee. He also distinguished the ratio of the judgment of the Hon'ble Allahabad High Court relied upon by AO to note that in that case the basis of memorandum of association was changed, whereas in this case it is only procedural rules that were amended. Therefore, there is no change in the objects of the Trust as such. He accordingly directed AO to allow exemption as claimed under section 11 by assessee trust. 4. After considering the rival contentions and examining the record, we are of the opinion that there is no need to disturb the findings of the CIT (A). First of all, AO considered that assessee claimed exemption under section 10(23) whereas in the return of income it correctly claimed deduction under section 11. This is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 11, 12 and 13 of the I.T. Act. These principles were established by the following decisions: (i) ACIT vs. Surat City Gymkhana (2008) 300 ITR 214 (SC) (ii) Hiralal Bhagwati vs. CIT (2000) 246 ITR 188 (Guj.) 5. Since there is no change in the object of assessee and as assessee continue to involve itself in charitable purpose for the help of physically handicapped persons and was receiving grant in aid from Govt. of Maharashtra, we are of the opinion that AO s observations that assessee changed the memorandum of association so that fresh registration is required does not hold good. Therefore, for all these reasons, we uphold the order of the CIT (A) and dismiss the grounds raised by the Revenue. 6. In the result appeal filed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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