2016 (10) TMI 527

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.... the assessment year 2010-11. 2. The assessee Society applied for registration under section 12AA of the Act in Form No.10A, vide receipt no.2213 dated 28.05.2001. The AO, however, without considering acknowledgment of Form No.10A, vide order issued under section 156 of the I.T. Act, assessed the assessee Society as AOP and raised demand of Rs. 22,05,152/- for the assessment year 2010-11 and Rs. 20,88,052/- for the assessment year 2006-07.The exemptions claimed under sections 11 and 12 of the Act, were not allowed. 3. The ld. CIT(A) allowed the benefit of under sections 11 & 12 to the assessee for both the assessment years under consideration. 4. The Department contends that the ld. CIT(A) has erred in allowing benefit of section 1....

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.... The clear intention of the assessee appears not to give this office time for verification of the true facts of the case. 2. This hand written forwarding letter claimed to be an application filed in the office of the Commissioner of Income-tax, Amritsar cannot give confidence whether the application was in a prescribed manner or not. Because filing of application in the prescribed form and prescribed manner is perquisite for registration of trust/society u/s 12A or 12AA as the case may be. 3. It seems to be unprecedented and an application has been received in this office or head office and remained unheard or unattended. 4. Onus was lying on the assessee to prove the genuineness of this so called application file....

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....its gross income and excess income over the permissible expenditures amounting to Rs. 55,67,368/- is treated as its taxable income. A penalty proceedings u/s 271(1)(c) of the Income tax Act, 1961 for filing inaccurate particulars and concealing the true particulars of income are being initiated separately." 7. The ld. CIT(A) observed as follows: "7. I do not agree with the observation of the AO, while deciding the issue that assessee does not enjoy the registration u/s 12AA of the Income Tax Act 1961 and is not eligible for exemption u/s 11 of the Income Tax Act. It was duty of the AO to find out from office of the higher authority regarding claim of the assessee that it has filed an application for registration u/s 12A. In-fact....

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....ove, I am considered opinion that assessee trust has to be considered as registered trust u/s 12AA, in view of section 12AA (2) of the Income Tax Act. In view of above and no clear finding of AO that assessee is not carrying out its object and not involved in charitable activities, the assessee is allowed to claim benefit of section 11&12 of the Act. Appeal is allowed on the issue." 8. Thus, it is seen that the factum of the assessee having made application for registration u/s 12AA of the Act is not disputed. The ld. CIT(A) has taken due note of the fact that if such application does not stand rejected or accepted within six months of filing thereof, it shall be considered as accepted. The provisions of section 12AA (2) of the Act are v....