AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2017 (8) TMI 1243
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.... the grounds of appeal. 4. The appropriate cost be awarded to the assessee." 2. Briefly, stated the facts are that the assessee filed a return of income on 30/09/2011 declaring nil income. The assessee derived Income from house property at Rs. 1,84,97,011 & Income from other sources of Rs. 557/- and claim the same as exempt u/s 10 & 11(1a) of the Income Tax Act, 1961(hereinafter referred to as the Act). The AO rejected the claim of exemption. Subsequently, the assessee filed rectification petition u/s 154 of the Act and same was rejected. Against this, the assessee preferred an appeal before Ld. CIT(A), who after considering the submissions dismissed the appeal. 3. The only effective ground in this appeal is against declining the claim of exemption to the assessee. The Ld. Counsel for the assessee vehemently argued that the authorities below were not justified in rejecting the claim of exemption. He reiterated the submissions as made in the written synopsis. He submitted that the assessee trust was constituted vide Trust deed 29/06/1957 by Shri Swai Brijendra Singh Ji, Maharaja of Bharatpur. He submitted that the Ministry of Home Affairs, Government of India vide letter dated ....
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....2002 directed to pay the rent. As no compliance was made, a contempt application was filed before the Hon'ble Supreme Court and Hon'ble Court vide order dated 20/07/2010 directed the State of Uttar Pradesh to pay the rent as directed in its order dated 09/09/2002. In pursuance to that direction the assessee received a sum of Rs. 2,64,24,302/- on which tax at source was deducted at Rs. 26,42,430/-. He submitted, under these facts when the trust was duly granted exemption from paying Income Tax vide letter of the Home Ministry dated 12/11/2001, despite that the revenue authority have denied the exemption. Now, the issue requires to be examined whether the revenue authority was justified in denying the exemption. Another argument raised by the Ld. Counsel for the assessee is that the income of the trust is exempt u/s 11 of the Act in as much as it was registered u/s 12AA albeit the registration was given w.e.f. 05/09/2016 but in view of the first proviso to section 12(2) where registration is been granted to the trust u/s 12AA, then the provisions of sections 11 & 12 shall apply in respect of any income derived from property held under Trust of any AY preceding the AY for which assess....
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....t the rent is to be taxed in the year when it is accrued founded. Admittedly, the assessee had not offered this income on the accrual basis as the assessee had filed first time the income tax return. Therefore, this contention of the assessee is not justified. 6. We have heard the rival contentions, perused the material available on record and gone though the order of the authorities below. The Ld. CIT(A) has decided this issue in his order as under:- "4.3 I have perused the rectification order and submissions made by the appellant and find that issue raised is against the denial of exemption of income u/s 10 & 11 of the IT Act by the AO. The appellant has also stated that AO has wrongly charged interest u/s 234A, 234B, and 234C of the IT Act. 4.4 The appellant has filed detailed submissions. It is stated that vide a certificate no. 4/26/56-Po11.III of Ministry of Home Affairs, Po11 III Section intimated vide letter dated 12th November, 1958, exemption from income tax was given to the trust. The appellant has stated that AO has failed to appreciate that Section 4(3)(i) of the Indian Income-tax Act, 1922 (Corresponding to section 11(1) of the Act) is available to the assessee, a....
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....se, the AO declined the claim of the exemption on the basis that the Trust was no registered u/s 12AA of the Act. Undisputedly, when the assessment order was passed, the trust was not registered u/s 12AA, therefore, it cannot be construed that there was any mistake apparent from record in recording finding on fact in this regard. The Hon'ble Apex Court in the case of U.P. Forest Corporation & Anr Vs. DCIT (2008) 297 ITR 001 (SC) held that a conjoint reading of section 11,12 and 12A makes it clear that registration under section 12A is a condition precedent for availing benefit under section 11 and 12 unless and until an institution is registered u/s 12A it cannot claim the benefit of section 11(1)(a). In view of the judgment of Hon'ble Supreme Court in the case of U.P. Forest Corp. & Anr Vs. DCIT(supra), there is no infirmity into the order of the AO in declining the claim of exemption on the ground that the Trust was not registered u/s 12A of the Act. 6.3 Another argument of the assessee is that since the Trust was granted exemption by the Government of India way back in the year 1958, it was not open to Revenue to tax the receipts of the assessee Trust now under the excuse of no....
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.... the exemption under the old Act i.e. Income Tax Act, 1922, after repeal of that Act. Whether such Acts fall under the saving clause or not if falls under the saving clause then it would be deemed that the exemption was available to the assessee trust. It would be proper at this stage to refer to Section 297 of the Act. Section 297 is reproduced herein below:- "297. Repeals and Savings. (1) the Indian Income-tax Act, 1922 (11 of 1922), is hereby repealed. (2) Notwithstanding the repeal of the Indian Income-tax Act, 1922 (11 of 1922) (hereinafter referred to as the repealed Act),- (a) Where a return of income has been filed before the commencement of this At by any person for any assessment year, proceedings for the assessment of that person for that year may be taken and continued as if this Act had not been passed; (b) Where a return of income is filed after the commencement of this Act otherwise than in pursuance of a notice u/s 34 of the repealed Act by any person for the assessment year ending on the 31st day of March, 1962, or any earlier year, the assessment of that person for that year shall be made in accordance with the procedure specified in this Act; (c) any p....
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....s made after such commencement in the payment of any sum due under such completed assessment, the provisions of this Act relating to interest payable by the Central Government on refunds and interest payable by the assessee for default shall apply; (j) any sum payable by way of income-tax, super-tax, interest, penalty or otherwise under the repealed Act may be recovered under this Act, but without prejudice to any action already taken for the recovery of such sum under the repealed Act; (k) any agreement entered into, appointment made, approval given, recognition granted, direction, instruction, notification, order or rule issued under any provision of the repealed Act shall, so far as it is not inconsistent with the corresponding provision of this Acct, be deemed to have been entered into, made, granted, given or issued under the corresponding provision aforesaid and shall continue in force accordingly; (l) any notification issued under-sub (1) of section 60 [or section 60A] of the repealed Act and in force immediately before the commencement of this Act, to the extent to which provision has not been made under this Act, continue in force [Provided that the Central Governm....