TMI Blog2015 (5) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... roduced nor the books of account were shown and thus rejection of the claim on the said ground cannot be said to be contrary to law. The petitioner had approached the Settlement Commission and showed his undisclosed income to the extent of ₹ 4 crores. In this connection it is submitted that the society is systematically generating huge surplus year after year and there is an institutional mechanism through which the society is perpetuating its profit motive every year. It is now well settled that if surplus is generated year after year, it cannot be said to be existing solely for educational purposes and in support of the said proposition learned counsel for the revenue has rightly relied on the decision of Uttarakhand High Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dly, the petitioner itself approached the settlement commission in the matter and voluntarily disclosed unaccounted income of ₹ 4.00 crores over and above the income shown in the returns of Shri Bhupesh Kumar, Chairman of the Society and the returns of its concern. The disclosure pertains to the assessment years 2005-06 to 2010-11. Subsequently, the petitioner claims to have filed an application for exemption under Section 10 (23C) (iv) of the Act on 31.03.2010, for the society which is registered under Societies Registration Act, 1860 enclosing copies of accounts for the financial years 2006-07, 2007-08 and 2008-09 stating that till the financial year 2008-09 the receipt from school was below ₹ 1 crore but in view of the receip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned counsel for the petitioner has sought to assail the order of the Director General on various counts. It is firstly submitted by learned counsel that in terms of the 14th proviso to Section 10 (23C) (vi) of the Act, the application for grant of exemption for any particular financial year has to be made on or before 30th of September of the relevant assessment year from which the exemption is sought and thus the order of the Commissioner apart from being factually incorrect by stating that the application made on 01.04.2010 is also legally wrong as the application was certainly not barred by limitation. The said proviso of Section 10 (23C) is in the following terms:- Provided also that in case the fund or trust or institution or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only and considered the same on merits also. With regard to the merits of the matter, learned counsel for the petitioner submits that petitioner's application for the assessment year 2010-11 requires consideration and even assuming that audited account was not complete for the assessment year 2010-11, opportunity ought to have been granted but the same was not done and for the said reason impugned order is bad. The aforesaid submission is not borne out from the impugned order as it is clearly stated therein that repeatedly opportunity was given to the petitioner to produce the books of account but the same were not produced. It was submitted before him that the books of account were not available and the search for the books was stil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ground that the mere fact that certain loose documents were found and an application was made regarding undisclosed income ought not to have led to rejection of its claim as they were educational receipts and merely non recording the same would not convert the character of the said receipts to undisclosed income. In our view the said submission has no legs to stand in view of the fact that the petitioner had approached the Settlement Commission and showed his undisclosed income to the extent of ₹ 4 crores. In this connection it is submitted that the society is systematically generating huge surplus year after year and there is an institutional mechanism through which the society is perpetuating its profit motive every year. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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