9911796707
TMI Blog2014 (10) TMI 1033X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by the assessee are directed against the order of learned CIT (Appeals), Shimla, dated 28.11.2011 for assessment years 2005-06 to 2008-09. 2. The departmental appeals are time bar red by 8 days. The Assessing Officer (ITO, Dharamshala, H.P. ) has explained in the application for condonation of delay that since the order of the learned CIT (Appeals), Shimla was received only on 13.2.2012 and the appeals were to be filed by 15.2.2012, therefore, there was some delay in filing the appeals. The learned counsel for the assessee did not object to the condonation of delay. 3. Considering the explanation of the Department, we are satisfied that the delay in filing the departmental appeals was not intentional and the Assessing Officer was pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e applied for grant of registration under section 12A of the Income Tax Act, which was not granted. The assessee for all the four assessment years filed return of income at nil income. The Assessing Officer, however, passed the assessment order against the assessee in the status of AOP treating the gross receipts of donation of the assessee as income. The additions were challenged before the learned CIT (Appeals) and it was submitted that the assessee institution is a Buddhist temple/monastery, which is run by one of the four Sects of Buddhism. The assessee was constructing a temple purely on public contributions and after issue of proper receipts for the same, the receipt books were got specifically printed for the said purpose. The amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et up for charitable and religious purposes and was constructing a huge building after receiving amount in he form of voluntary donations. It has also been acknowledged by the Id. A.O. that the appellant had produced the relevant books of account alongwith bills and vouchers and requisite documents. The Id. A.O. has held that since the appellant institution had not been registered u/s 12A of the I. T. Act, its claim regarding its income being exempt was not acceptable. However, despite holding that registration u/s 12A of the I. T. Act was not granted to the appellant assessee, the Id. A.O. has chosen to apply the provisions of section 12(1) of the I. T. Act to the appellant's case and thereby treated the voluntary contributions receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re no other profession or occupation in which the appellant society was engaged. Books of account, registers and receipt books were meticulously maintained by the appellant society incorporating the details of the smallest sums of donations received and spent towards the construction of the monastery/Buddhist temple. The said books of accounts and documents have a/so been produced during the course of the proceedings. The said donations have duly been acknowledged by the Id. A.O. Once the appellant is assessed in the status of an AOP, the provisions relating to the assessment of a Trust can not possibly be applied to its case. To that extent the Id. A. 0. has misled himself in invoking the provisions of section 12 of the I. T. Act. The said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the nature of income. The Id. A. O's action in treating the gross receipts on account of voluntary donations as income without allowing the corresponding expenditure is misdirected. The additions made by the Id. A.O. for the 4 given assessment years are thus without any basis and are, therefore, directed to be deleted. In result, the appeals of the appellant for all the 4 assessment years are allowed." 7. We have heard the learned representatives of both the parties and perused the material on record The learned D.R. for the Revenue relied upon the order of the Assessing Off icer and submitted that al l the receipts in the nature of corpus are income of the assessee and have been rightly taxed in the hands of the assessee as an A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... construction of temple and used the same donation specifically for the purpose of construction only. Thus no income accrues or arises to the assessee and no material has been brought on record that the assessee started doing any activity which yielded any income to the assessee. The word "association" means " to join in common purposes, or to join in an act ion" . Therefore, "association of persons", as used in Income Tax Act, means an association in which two or more persons join in a common purpose or common act ion and as the words occurs in Income Tax Act, which imposes a tax on income, the association must be one the object of which is to produce income, prof its or gains. We rely upon the decision of the Hon'ble Supreme Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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