TMI Blog2022 (6) TMI 1366X X X X Extracts X X X X X X X X Extracts X X X X ..... 12AA as a condition precedent for availing the exemption u/s 10(23C)(v) of the Act. In fact, the provisions of section 11 and section 10(23C)(v) are two parallel regimes and operate independently in their respective realms. This position was clarified by CBDT Circular No.14 of 2015 dated 17.08.2015 - it is well-known canon of construction of the Statute, no words can be added to in Act or a new stipulation which is not prescribed in the statute can be read into the Act as held by the Hon ble Supreme Court in the case of CIT vs. Vadilal Lallubhai [ 1972 (8) TMI 1 - SUPREME COURT ] As regards to the delay in filing the audit report in the prescribed form, the Courts have taken a consistent view that filing of audit report in the prescribed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt year 2014-15. 2. The Revenue raised the following grounds of appeal :- 1. The Ld. CIT(A), has erred in allowing exemption u/s 10(23C)(v) of the Act, in the given facts of the case, particularly the assessee failed to furnish Audit report in Form No. 10BB u/s 10(23C)(v) r.w.r. 16CC. 2. The Ld. CIT(A), has erred in granting exemption u/s 11 of the Act by accepting Form No. 10 filed during the course of assessment proceedings, even though the Trust is not registered u/s 12A of the Act. 3. Briefly, the facts of the case are that the respondent-assessee is a religious and charitable trust engaged in the work of managing the administration and functioning of Sikh Gurdwara Sachkhand Shri Hazur Sahil, Nanded. It is to be note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itutes sufficient compliance and, therefore, there is no requirement under the law that in order to avail the exemption u/s 10(23C)(v) of the Act. The Trust should also enjoy the registration u/s 12AA of the Act and finally the mere fact that the respondent-assessee generated surplus does not lead to conclusion that the funds were not properly utilized by the respondent-assessee trust. The ld. CIT(A) considering the following decisions relied upon by the respondent-assessee (i) Hon ble Suprme Court in the case of (i) CIT vs. Nagpur Hotel Owner s Association, 247 ITR 201 (SC), (ii) Hon ble Gujarat High Court in the case of ACIT vs. Stock Exchange Ahmedabad, 25 Taxmann.com 469 (Guj.) and (iii) Hon ble Delhi High Court in the case of Associati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d within due date of filing return of income u/s 139 of the Act. He further contended that the ld. CIT(A) ought not to have held that the findings of the Assessing Officer that the funds were not properly utilized, administered and supervised is bald in the absence of any material on record controverting the findings of the Assessing Officer. He further submitted that the respondent-assessee trust was granted registration u/s 12AA only on 15.05.2017 which is applicable from financial year 2016-17 onwards. Thus, in the absence of any registration u/s 12AA, the respondent-assessee trust is not entitled for benefit of exemption under the provisions of section 10(23C)(v) of the Act. 7. On the other hand, ld. AR for the respondent-assessee tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he claim for exemption u/s 10(23C)(v) primarily on the ground that : (i) The funds of the trust were not properly utilized/supervised. (ii) The respondent-assessee trust does no enjoy the registration under the provisions of section 12AA of the Act. (iii) The audit report in the prescribed form was not filed within the stipulated date i.e. along with return of income filed u/s 139(1) of the Act. 9. On appeal before the ld. CIT(A), the ld. CIT(A) was of the opinion that the Assessing Officer was not justified in observing that the funds of the trust were not properly utilized without bringing any material on record. Further, as regards to the filing of audit report in the prescribed form, the ld. CIT(A) placing reliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust had generated surplus does not lead to conclusion that the appellant trust is not charitable or religious exiting for the purpose of profit. To the similar effect in the decision of the Hon ble Supreme Court in the case of Aditanar Educational Institution vs. Addl.CIT, 224 ITR 310 (SC). Therefore, the Assessing Officer cannot jump to the conclusion that the respondent-assessee trust is not religious and charitable trust merely because it generated surplus income. 11. We have carefully gone through the provisions of section 10(23C)(v) which does not prescribe any stipulation, which makes the registration u/s 12AA as a condition precedent for availing the exemption u/s 10(23C)(v) of the Act. In fact, the provisions of section 11 and se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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