TaxTMI 
TaxTMI 
2018 (7) TMI 1466
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....t this is a second round of litigation. In earlier round, the Tribunal was pleased to set-aside the issue of granting of registration u/s 80G to the file of the ld. CIT in I.T.A.No. 236/Ind/2017 vide order dated 13.06.2017. The ld. CIT has again rejected the application of the assessee society. Aggrieved by this, the assessee is before this Tribunal. 4. Ground no. 3 of the assessee's appeal reads as under :- 3. Without prejudice to ground no.1, the order passed by CIT(E) was time barred hence approval should be declared to have granted w.e.f. the date of time barring that is 1st Jan.,2018. 5. The Ld. Counsel for the assessee vehemently argued that the order passed by the ld. CIT is barred by limitation, as the order has not been passed, within six months from the date of pronouncement of order. He submitted that the impugned order is dated 29th January, 2008. 6. The Ld. Counsel for the assessee submitted that the service of notice is to be construed from the date of pronouncement of the order. In support of this contention, the Ld. Counsel for the assessee placed heavy reliance on the decision of the Hon'ble Delhi High Court in the case of CIT vs. Odeon Builders (P) Limite....
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....jected. In these circumstances, we are of the considered opinion that the original jurisdiction is vested with the CIT(E), Bhopal and who has also passed the order u/ s 80G as well as u/ s 12AA of the Act in respect of assessee society, therefore, in the interest of justice and fair play we deem it fit to restore the matter to the file of the CIT(E) to decide the matter afresh without any prejudice in accordance with law on production of books of accounts and required documents. The assessee society is also directed to cooperate with the proceedings and produce necessary books of accounts and other documents as contemplated under Rule 11AA(3) of I.T. Rules, 1962 and as are the necessary for grant of approval u/ s 80G of the Act within the reasonable time. In the light of aforesaid fact the entire issue in respect of all grounds of appeal is set aside to the file of CIT(E) with de novo consideration and in accordance with law. 9. From the above direction, it is clear that the society was directed to produce necessary documents before the Ld. CIT(A) by the order of the Tribunal within the reasonable time. It is uncontroverted fact that the assessee society itself sought adjournment....
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....val submissions and perused the material available on record. It is contended on behalf of the assessee that ld. CIT while granting registration u/s 12A of the Income-tax Act, 1961, has satisfied about entitlement of deduction. He submitted that the provisions of Section 12A and 80G are similar. The conditions as embodied in those provisions are identical. The registration u/s 12A was granted during the financial year in which the application for registration u/s 80G was made. It is vehemently argued that once the ld. CIT is satisfied about registration u/s 12A, then the rejection of registration u/s 80G is not justified. For the sake of clarity, we reproduce the relevant provisions of Section 12AA and Section 80G conditions :- Conditions of Section 12A: "12A. (1) The provisions of section 11 and section 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:- (a) the person in receipt of the income has made an application for registration of the trust or institution in the prescribed form and in the prescribed manner to the Principal Commissioner or Commissioner before the 1st day of July, 1973, or before ....
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....chargeable to income-tax in any previous year, the accounts of the trust or institution for that year have been audited by an accountant as defined in the Explanation below subsection (2) of section 288 and the person in receipt of the income furnishes along with the return of income for the relevant assessment year the report of such audit in the prescribed form8 duly signed and verified by such accountant and setting forth such particulars as may be prescribed. Following clause (ba) shall be inserted after clause (b) of sub-section (1) of section 12A by the Finance Act, 2017, w.e.f. 1-4-2018 : (ba) the person in receipt of the income has furnished the return of income for the previous year in accordance with the provisions of sub-section (4A) of section 139, within the time allowed under that section. (c) [***] (2) Where an application has been made on or after the 1st day of June, 2007, the provisions of sections 11 and 12 shall apply in relation to the income of such trust or institution from the assessment year immediately following the financial year in which such application is made: Section 80G(5) Conditions: " (5) This section applies to donations to any instituti....
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....tution financed wholly or in part by the Government or a local authority; and] (vi) in relation to donations made after the 31st day of March, 1992 , the institution or fund is for the time being approved by the Commissioner in accordance with the rules 3 made in this behalf: Provided that any approval shall have effect for such assessment year or years, not exceeding five] assessment years, as may be specified in the approval.] (vii) Where any institution or fund had been approved under clause (vi) for the previous year beginning on the 1st day of April 2017 and ending on the 31st day of March, 2008, such institution or fund shall, for the purposes of this section and notwithstanding anything contained in the proviso to clause (15) of Section 2,. Be deemed to have been, - (a) established for charitable purposes for the previous year beginning on the 1st day of April, 2008, and ending on the 31st day of March, 2009; and (b) approved under the said clause (vi) for the previous year beginning on the 1st day of April, 2008, and ending on the 3st day of March, 2009.]" 16. The submission of the assessee is to be examined in the light of the above provisions of law. The ....
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....e separate entities, why their surplus handed over to the assessee society? Also Whether these entities are entirely separate and whether they are separately Registered and filing I. T. Return or not. If they are separate why the receipts & Expenses of Palanpur, and particulars of Mumbai are clubbed with assesses accounts. Also the receipts /surplus of Mumbai are not taken in the accounts as pointed out above in Para 1. It is also not explained whether the affiliates are collecting funds in the name of assessee and if so whether their receipts and expenses are as per the objects of the assessee society. It is seen from the copy of I&E of Palanpur (2016-17) and Mumbai (connect 2015-16) that huge amounts are collected and spent only for organizing conference of its members. The major collection being sponsorship Rs. 85,90,980/- out of total receipts by Palanpur. Similarly Mumbai unit shown sponsorship of Rs. 25,80,000/-, Trade money Rs. 19,80,000/- + Rs. 34,69,000/- i.e. Rs. 54,49,000/-and service Tax of Rs. 7,30,388/out of total receipts of Rs. 1,16,28,488/-. This shows that the conference are being sponsored by some commercial entity whose details not produced as stated in Para 3 a....