2018 (11) TMI 641

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....lidated order and since the underlying facts in issues are identical, both these appeals were heard together and are being disposed of by this common order for the sake of convenience and brevity, though the quantum may differ. 2. The substantive grievances of the assessee in both the A.Ys read as under: "1. The CIT(A) erred in returning findings and deciding the issue of the Assessee's entitlement to registration U/S.12-AA, which was completely out of his jurisdiction in appeal. 2. The CIT(A) erred in putting the Assessee's gross receipts to tax on the peculiar reasoning that a society registered U/S.12-AA of the Act cannot claim the benefit of mutuality. 3. The CIT(A) erred in enhancing the income in ....

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..../-. 4. The assessee carried the matter before the CIT(A) but, to its surprise, received notice for enhancement. 5. The first appellate authority was of the opinion that the assessee has wrongly claimed registration u/s 12AA of the Act, and therefore, the entire receipt of the assessee-society should be treated as income of the assessee. The CIT(A) further observed that the assessee is not entitled for the benefit of Doctrine of Mutuality. The CIT(A) further observed that the assessee has admittedly violated the provisions of section 13 of the Act in as much as, the entire expenditure of the assessee society is for the benefit of the members of the association or persons and their relatives. 6. On the observation made by the first a....