TMI Blog2021 (1) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... too, when the registration granted under section 12A of the Act is still in vogue. Undisputedly, the departmental authorities have disallowed assessee s claim of exemption under section 11 of the Act on the reasoning that it provides services only to its members Before us, referring to the objects learned counsel for the assessee has submitted that services are provided to others as well. This claim has not been factually verified by the departmental authorities - assessee s claim of exemption under section 11 has to be considered properly having due regard to the relevant facts and more particularly after examining whether the objects of the assessee on the basis of which registration was granted under section 12A of the Act remains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct should not apply to the assessee. Though, the assessee objected to the proposed disallowance of exemption claimed under section 11 of the Act, however, the Assessing Officer ultimately concluded that the assessee merely is a mutual concern having no charitable object. Therefore, insofar as income earned from the members, applying the principles of mutuality he did not bring it to tax. However, insofar as interest income earned from the Banks and staff loan amounting to ₹ 4,58,792, the Assessing Officer treated it as income of the assessee and brought to tax. While deciding assessee s appeal against such addition, learned Commissioner (Appeals) while agreeing with the decision of the Assessing Officer that the assessee is a mutua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 354 (Mum.) (Trib.); iv) Confederation of Real Estate Developers Association of India v/s ACIT, [202-0] 119 taxmann.com 491 (Mum.) (Trib.); and v) Fragrance Flavours Association of India v/s DDIT, [2018] 92 taxmann.com 325 (Mum.)(Trib.). 5. The learned Departmental Representative strongly relied upon the observations of the Assessing Officer and learned Commissioner (Appeals). 6. I have considered rival submissions in the light of decisions relied upon and perused the material on record. A perusal of the assessment order reveals that, though, in the show cause notice the Assessing Officer had raised the issue of applicability of proviso to section 2(15) of the Act, however, ultimately he has not denied assessee s claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the learned Authorised Representative further stated that objects of the assessee have not changed. In case of DIT(E) Vs. Gemological Institute of India [2019] 105 taxmann.com 179 (Bombay) the Hon ble Jurisdictional High Court has held that once registration under section 12A is granted to the assessee, then it is not open to the Assessing Officer to revisit the objects of the assessee again while examining the claim of exemption under section 11 of the Act. Therefore, if the objects on the basis of which the assessee was granted registration under section 12A of the Act by considering them to be of charitable nature, then, in absence of any change in such objects of the assessee, it is not understood how it can lose its identity of a cha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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