TaxTMI 
TaxTMI 
2015 (7) TMI 235
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....recting the AO to allow the expenses claimed by the assessee as appiication of income ujs. 11 of the Income Tax Act, 1961. 3. On the facts and circumstances of the case, and when the assessee has not been able to produce the bills and vouchers of expenses claimed on Medical Camps and rehabilitation consequent to floods and documentary evidences for expenditure incurred with respect to relief of poor, the Ld. CIT(A) is not justified in directing the AO to allow the expenses claimed by the assessee as application of income ujs. 11 of the Act". 2. Briefly stated, assessee is a company registered u/s 25 of the Companies Act and is also registered u/s 12A of the Income Tax Act, 1961. Assessee filed return of income on 27.7.2011 claiming exempt....
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....mptions) and that these modified objects can be implemented or works undertaken in pursuance of such modified objects for availing exemption u/s 11. The Assessing Officer also observed that the assessee had not submitted the details or evidence for expenditure on activities undertaken in places affected by natural calamities and since the expenditure was not in accordance with the objects mentioned in the MOA, these expenses were not allowable as application of income u/s 11. 6. In the course of the appellate proceedings, the AR suhmitted that the interpretation of the objects made by the Assessing Officer was erroneous, that the assessee was permitted to undertake any kind of charitable activity for relief of poor and the disabled and th....
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....ssee has not been able to produce the bills and vouchers of expenses claimed on medical camps and rehabilitation consequent to floods and also documentary evidences were not produced for expenditure incurred with respect to relief of the poor and hence the CIT (A) had wrongly directed the AO to allow the expenses claimed by the assessee as application u/s 11 of the Act. 10. The ld Counsel for the assessee relied on the order of the CIT (A). The ld Counsel for the assessee also clarified that the company would undertake any kind of charitable activities for relief of the poor and the disabled. Further in respect of others i.e. persons not poor or disabled it would carry out relief work where such persons are affected by natural calamities. ....
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.... establish and maintain Hospitals, medical investigation and research establishments or institutions, in India for affording facilities of medical relief to the poor, the sick and the suffering, especially in the rural areas. 4. To carryon any social service work or relief work for helping the poor, disabled or others affected by natural' calamities, either by itself or in co-operation with any other organizations. 5. To attain the main objects, the company shall raise funds by undertaking printing and publishing of books and other literature, through production and telecast of message oriented Audio Video cassettes, by making feature' films, documentary films, Television serials and Episodes for advancement of culture and knowled....
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....fy and add additional objects in the month of May, 2009 which was ultimately rejected in January, 2011. It was the conclusion of the AO that the assessee was not confident of the activities in relation to the objects existing and therefore had made efforts for addition of new objects. Further the AO in the course of assessment proceedings vide order sheet entry dated 08-012014, the Authorised Representative of the assessee was asked to submit the details of the places, where the activities are conducted, affected by natural calamities as per the objects. The case was adjourned to 17-01-2014. However, the AR has appeared on 21-01-2014 and filed note on medical camps and rehabilitation consequent to floods but no proof has been furnished to t....
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....ant documents for expenditure incurred with respect to the relief to the poor affected by natural calamities which was not responded by the assessee, hence we deem it fit to restore the issue to the file of the AO and give one more opportunity to the assessee to produce the same to the satisfaction of the assessing authority who shall decide the issue in accordance with law. 15. The AO also had come out with a point that the assessee company was granted registration u/s 12A of the Act, based on MOA approved by the Registrar of Companies and any change in the objects of the MOA as per the Companies Act became operative from the date of such approval given by the concerned authorities for Corporate Affairs and approval is given prospectively....