TMI Blog2022 (5) TMI 1499X X X X Extracts X X X X X X X X Extracts X X X X ..... any charitable activity, the assessee is not entitled for registration u/s.12A - It is true that the assessee is the primary organization looking after the education requirement in the State of Odisha but that does not per se make it liable for registration u/s.12A of the Act. In these circumstances, we find no error in the order of the ld CIT(E) in refusing registration u/s.12A of the Act on the ground that the assessee has not done any charitable activity nor has shown any intention to do so. Additional Ground that the assessee is a State - We are not in agreement with the order of ld CIT(E) in respect of genuineness of the organization. Admittedly, the organization has been created by the Govt of Odisha and the claim of CIT(E) is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eared on behalf of the revenue. 3. The assessee has raised the following grounds: 1. That on the facts and circumstances of the case and in law, the CIT(E) has gross erred in denying registration to the assessee society u/s.12(A) (a) of the Income tax Act, 1961( the Act ) as claimed. 2. That on the facts and circumstances of the case and in law, the CIT(Exemptions) has grossly erred in denying registration to the assessee society u/s.12A(a) of the Income tax Act, 1961 as claimed in gross violation to the principle of natural justice fairness. 4. The assessee has also raised an additional ground under Rule 29 of the Income Tax Rules, 1963, which reads as under: On the facts and in the circumstances of the case, the ld CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion for the State of Maharashtra has been held to be State under Article 289 of the Constitution of India and is entitled for immunity from taxation. It was the submission that the assessee had submitted before the CIT(E) that the assessee was not filing its return of income because the assessee was under bonafide belief that it was State and not liable to tax under the Income tax Act. It was further submission that in paras 4.3 4.4 of his order, the CIT(E) stated that the assessee had substantial taxable income and the assessee was not filing its return of income and further alleged that the assessee had taken a conscious decision to defraud revenue. It was the submission that the CIT(E) had taken the decision by holding that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that as to what has been done with the excess of income over expenditure, to which, ld AR replied that same was kept in fixed deposit. This clearly shows that there is no application of income for any charitable activity. Further the fact that the assessee has generated such huge funds in the form of income over expenditure and the same having not been used for the purpose of any charitable activity, the assessee is not entitled for registration u/s.12A of the Act. It is true that the assessee is the primary organization looking after the education requirement in the State of Odisha but that does not per se make it liable for registration u/s.12A of the Act. In these circumstances, we find no error in the order of the ld CIT(E) in refusin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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