TaxTMI 
TaxTMI 
2018 (1) TMI 1235
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....he total income of assesse at Rs. 92,04,200/- against the returned income at Rs. Nil in the facts and circumstances of the case. 3. Brief facts of the case, according to AO are that the assessee is an 'AOP' and filed its return of income declaring 'Nil' for the A.Y under consideration on 19-02-2010. Notices u/s. 143(2) and 142(1) of the Act were issued and duly served on the assessee. In response to which, the A/R of the assessee appeared and filed written submissions and produced books of accounts. During the course of scrutiny proceedings the AO found that the application for renewal of approval u/s. 35(1)(ii) of the Act for the period from 1-4-08 onwards has been rejected by the Central Board of Direct Taxes hereafter for short as CBD....
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....he assessee as the taxable income under the I.T. Act without appreciating the facts and the AO should have made a protective assessment. 5. Considering the above submissions, the CIT-A in absence of any approval u/s. 35(1)(ii) of the Act rejected the claim of assessee and confirmed the order of the AO. The relevant portion of which is reproduced as under: "1. This appeal is filed against order U/s. 143(3) dated 25/11/2011 assessing the income at Rs. 92,04,200 against the returned income of Rs. NIL. 2. The AO noted that the renewal of approval U/S 35(1)(ii) for the period 01/04/2008 onwards has been rejected by Central Board of Direct Taxes vide Order Dated 24/08/2009. As the assessee was not registered as a charitable t....
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....ing the same thereafter. In view of the such circumstances, the Ld.AR argued that the order of rejection of renewal passed by the CBDT is not valid and prayed to allow the grounds of appeal as raised by the assessee before the Tribunal. 7. On the other hand, the ld. DR relied on the orders of the authorities below. 8. Heard rival submissions and perused the material on record. We find that the CBDT rejected the application of assessee for renewal of the recognition seeking exemption by an order dated 24- 08-2009 stating that no adequate scientific research activity has been carried out by the assesse. We note that in order to claim exemption u/s. 35(1)(ii) of the I.T Act 1961 approval is essential and necessary. The relevant portion o....
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....the assesse failed to realize that the matter shall thereafter be placed before the Ministry of Finance for passing an order either accepting or rejecting the prayer for approval is at document no-4 of paper book of assessee. The relevant portion of which is reproduced herein below:- "In this case the petitioner was offered an opportunity of hearing before "Member (IT) CSDT and CIT (IT)''. CIT (IT) is also the authority to receive the application for approval, CIT(IT) after receiving such application is required to satisfy himself as regards eligibility of the applicant. In case he is not satisfied be may also afford an opportunity of hearing to the appellant and shall thereafter make the recommendation. In this case such a....