SRI JAGANNADHA SWAMY, SRI ANJANEYA SWAMY, SRI VENKATESWARA SWAMY TEMPLES,GUNTUR vs. THE ITO(EXEMPTIONS), GUNTUR

Facts of the case, in brief, are that assessee is a religious charitable trust, filed its return of income declaring NIL income after claiming the excess of income over expenditure of Rs.26,39,132/-. The case of the assessee was selected for scrutiny and after following due procedure assessment was completed u/sec. 143(3) of the Act by computing income at Rs.20,72,811/-.

The assessee carried the matter in appeal before the ld.CIT(A). The ld. CIT(A) observed that the Assessing Officer has brought to tax the net excess of income over expenditure on the plea that the trust has neither 12A registration nor approval of 10(23C) of the Act which is mandatory to claim exemption of excess of income over the expenditure. He further observed that as per section 12A, the provisions of sections 11 & 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:- “(a) the person in receipt of the income has made an application for registration of the trust or institution in the prescribed form and in the prescribed manner to the Principal Commissioner or Commissioner before the 1st day of July, 1973, or before the expiry of a period of one year from the date of the creation of the trust or the establishment of the institution, whichever is later and such trust or institution is registered under section 12AA; (aa) the person in receipt of the income has made an application for registration of the trust or institution on or after the 1st day of June, 2007 in the prescribed form and manner to the Principal Commissioner or Commissioner and such trust or institution is registered under section 12AA.” Ld. CIT(A) further observed that the assessee has not filed any details in respect to get exemption u/sec. 10(23C) and confirmed the order of the Assessing Officer.

Before us, ld. counsel for the assessee has submitted that ld.CIT(E), Guntur has granted 12AA registration to the assessee from 01/04/2008, but he ought to have granted registration from (Sri Jagannadha Swamy, Sri Anjaneya Swamy, Sri Venkateswara Swamy Temples)

On the other hand, ld.DR strongly supported the orders passed by the authorities below.

We have heard both the parties, perused the material available on record and gone through orders of the authorities below.

There are two issues involved in this appeal. The first issue relates to grating registration u/sec. 12AA of the Act. The assessee has filed Form No.10A on 29/05/2008 and the ld.CIT(E) granted registration from 01/04/2008. The case of the assessee is that when the ld.CIT(E) granted registration, assessment is pending with the Assessing Officer for the A.Y. 2006-07, therefore ld.CIT(E) ought to have granted registration from the A.Y. 2006-07 onwards. We find that the assessee has not filed any evidence to support his argument that the assessment for the A.Y. 2006-07 is pending with the Assessing Officer and for registration, the assessee has filed the application in Form No.10A on 29/05/2008 only, therefore ld.CIT(E) granted registration taking (Sri Jagannadha Swamy, Sri Anjaneya Swamy, Sri Venkateswara Swamy Temples) into consideration of Form No.10A. We find no infirmity in the order of the ld. CIT(E), on this count also assessee is not having any case. So far as second issue which relates to section 10(23C) is concerned, the assessee has not filed any details in respect of approval of section 10(23C), therefore ld. CIT(A) has denied the exemption and confirmed the order of the Assessing Officer. Even before us, the assessee has not filed any details in respect of 10(23C) for grant of approval, therefore we find no reason to interfere with the order passed by the ld. CIT(A). By considering the entire facts and circumstances of the case, we find no reason to interfere with the order passed by the ld. CIT(A).

Insofar as additional ground raised