TMI Blog2016 (10) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... nwal, DR Respondent by : Sh. Parveen Jain, Advocate ORDER Per A. D. Jain, JM These are the Department s appeals for the assessment years 2010-11 2006-07, against the action of the ld. CIT(A), Amritsar, in allowing the benefit under sections 11 and 12 of the Income Tax Act, 1961, to the assessee. The facts being similar in both the appeals, the same are being taken from ITA No.453(Asr)/2014 for the assessment year 2010-11. 2. The assessee Society applied for registration under section 12AA of the Act in Form No.10A, vide receipt no.2213 dated 28.05.2001. The AO, however, without considering acknowledgment of Form No.10A, vide order issued under section 156 of the I.T. Act, assessed the assessee Society as AOP and raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Commissioner of Income tax, Amritsar bearing an almost twelve year old number and date which in itself is difficult to be verified. From the above discussion, it is clearly evident that assessee had deliberately concealed its intention of claiming deemed registration upto 30.11.2012 especially in view the fact that 31st of December remained the time barring date for completion of Assessment for previous years. The clear intention of the assessee appears not to give this office time for verification of the true facts of the case. 2. This hand written forwarding letter claimed to be an application filed in the office of the Commissioner of Income-tax, Amritsar cannot give confidence whether the application was in a prescribed manner o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not true in this case. Hence these judgments are not application in this case. From the above stated facts. I am of the considered view, that assessee trust/society does not enjoy the registration u/s 12AA of the Income tax Act, 1961 and is not eligible for the income exemption u/s 11 of the Income Tax Act, 1961. Hence, whole of the receipts i.e. ₹ 2,71,51,594/- of the assessee trust is treated as its gross income and excess income over the permissible expenditures amounting to ₹ 55,67,368/- is treated as its taxable income. A penalty proceedings u/s 271(1)(c) of the Income tax Act, 1961 for filing inaccurate particulars and concealing the true particulars of income are being initiated separately. 7. The ld. CIT(A) observe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,594/-, the AO has allowed application of income as expenses and has only assessed income of ₹ 55,67,368/-. The expenses claimed in income and expenditure account are not permissible expense against income received by the assessee and they are merely application of income, which is normally allowable in the case of Registered Charitable Trust. After considering assessee s submissions and issued discussed above, I am considered opinion that assessee trust has to be considered as registered trust u/s 12AA, in view of section 12AA (2) of the Income Tax Act. In view of above and no clear finding of AO that assessee is not carrying out its object and not involved in charitable activities, the assessee is allowed to claim benefit of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration of an application under Section 12AA of the Income Tax Act. The High Court has taken the view that once an application is made under the said provision and in case the same is not responded to within six months, it would be taken that the application is registered under the provision. 4. The learned Additional Solicitor General appearing for the appellants, has raised an apprehension that in the case of the respondent, since the date of application was of 24. 02.2003, at the worst, the same would operate only after six months from the date of the application. 5. We see no basis for such an apprehension since that is the only logical sense in which the Judgment could be understood. Therefore, in order to disabuse any a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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