PORWAL YUVAK SANG KOTA,KOTA vs. ITO WARD 2(1) KOTA, KOTA

Rs.70,42,140/-: The Id. CIT(A) has grossly erred in law as well as on the facts of the case in confirming the addition of Rs. 70,42,140/- made by the ld. AO u/s 56(2)(x), the Id. AO and CIT(A) also erred in disallowing the entire expenses or revenue expenses of i.e grossly erred in taking the entire gross receipts of Rs. 70,42,140/- as income or receipts in place of deficit or surplus and not allowed the exemption u/s 11 and 12. Hence the addition/ disallowance so made by the AO and confirmed by the Id. CIT(A) is being totally contrary to the provisions of law and facts on the record and hence same may kindly be deleted in full.

The Id. AO has grossly erred in law as well as on the facts of the case in not allowing the exemption u/s 11 and 12, also erred on the facts that at the year end31.03.2023 there was no rejection order rather registered provisionally, hence retrospective effect given is invalid, illegal void-ab-inito. Hence the exemption/claim u/s 11 and 12 so denied by the AO is being totally contrary to the provisions of law and facts on the record and hence same may kindly be directed to allow the same and addition be deleted in full.

The ld. AO has grossly erred in law as well as on the facts of the case in charging interest u/s 234A, 234B and 234C. The appellant totally denies it liability of charging of any such interest. The interest, so charged, being contrary to the provisions of law and facts, may kindly be deleted in full.

The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing.”

Briefly stated, facts necessary for adjudication and consideration of the issues at hand are: During scrutiny assessment, the assessee society’s registration u/s 12AB of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) has been rejected by the Ld. CIT(E) vide order dated 30.03.2024. Thereafter during scrutiny assessment the AO noticed that assessee has received income/donation of Rs. 70,42,140/- and has shown application of income amounting to Rs. 70,42,140/- and claimed exemption u/s 11 of the Act. Since, assessee’s registration u/s 12 has already been rejected, the AO proceeded to make addition of Rs. 70,42,140/- being the income from other sources and thereby framed assessment u/s 143(3) r.w.s. 144B of the Act. 3. Assessee carried the matter before the Ld. CIT(A), who has confirmed the addition. Feeling aggrieved with the impugned order passed by the Ld. CIT(A), assessee has come up before the Tribunal by way of filing the present appeal. 4. We have heard Ld. ARs for the appellant and Ld. DR for the Revenue and perused the record available on file.

Ld. AR for the assessee has contended that the impugned order dated 30.03.2024vide which assessee trust’s registration u/s 12AB of the Act was cancelled, has since been set aside by the Tribunal vide order dated 20.12.2024 available at page 74 to 81 of the paper book. 6. We have perused the order passed by Tribunal, (supra) vide which registration of the assessee trust vide which registration of the assessee u/s 12AB of the Act was rejected, has since been set aside to be decided afresh by the Ld. CIT(A). Since, Ld. CIT(A) has decided the issue raised in the appeal before him, merely on the ground that the assessee trust is not entitled for exemption u/s 11 being not registered u/s 12AB of the Act, which fact got controverted from the order passed by Tribunal order (supra) by the Tribunal. 7. The assessee has also placed on record copies of the documents viz; copy of bank account statements, copy of income & expenditure A/c and ledger for F.Y. 2020-21 and 2021-22, copy of balance sheet and income & expenditure A/c of F.Y. 2021-22, copy of computation of total income for A.Y. 2023-24, copy of constitution of the trust, copy of Form No. 10B filed dated 30.09.2023, copy of Form No. 10BB dated 29.10.2023 filed copy of photographs of various works/event done by the trust and copy of Tribunal order in case of Porwal Yuvak Sang Kota