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Income Tax Appellate Tribunal, VISAKHAPATNAM “SMC” BENCH, VISAKHAPATNAM
Before: SHRI V. DURGA RAO, HON’BLE
IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM “SMC” BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER ITA No. 363/VIZ/2015 (Asst. Year : 2006-07 to 2009-10) Sri Jagannadha Swamy, vs. ITO (Exemptions), Sri Anjaneya Swamy, Guntur. Sri Venkateswara Swamy Temples, Lalapet, Guntur. PAN No. AADTS 8844 H (Appellant) (Respondent)
Assessee by : Shri P. Vinod, Advocate. Department By : Smt. U.Mini Chandran,Sr.DR Date of hearing : 16/12/2019. Date of pronouncement : 08/01/2020. O R D E R This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-1, Guntur, dated 31/07/2015 for the Assessment Year 2006-07. 2. 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/-.
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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. 4. 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
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01/06/2006 for the reason that at the time of granting registration, assessment is pending with the Assessing Officer for the A.Y. 2006-07 and as per the 9th proviso to section 10(23C), assessee is eligible for registration from A.Y. 2006-07 onwards. 5. On the other hand, ld.DR strongly supported the orders passed by the authorities below. 6. We have heard both the parties, perused the material available on record and gone through orders of the authorities below. 7. 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
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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). 8. Insofar as additional ground raised, in respect of application of proviso to section 12A(2), we find that the additional ground raised by the assessee is not maintainable in view of our observations in preceding paragraphs. Thus, this additional ground is hereby dismissed. 9. In the result, appeal filed by the assessee is dismissed. Order Pronounced in open Court on this 08th day of January, 2020. Sd/- (V. DURGA RAO) Judicial Member Dated: 08th January, 2020.
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vr/- Copy to: 1. The Assessee – Sri Jagannadha Swamy, Sri Anjaneya Swamy, Sri Venkateswara Swamy Temples, Lalapet, Guntur. 2. The Revenue - ITO (Exemptions), Guntur. 3. The Pr.CIT, Guntur. 4. The CIT(A)-1, Guntur. 5. The D.R., Visakhapatnam. 6. Guard file. By order
(VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Visakhapatnam.