2017 (2) TMI 1400

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.....9.1976 had filed an application seeking registration u/s 12A of the I.T. Act on 27.3.2005. The same has been rejected by the ld. CIT on the basis that activity of the applicant could not be termed as charitable within the meaning of section 2(15) of the Act; there were huge surpluses during Financial Years 2001-02 (Rs.63,33,168/-), F.Y. 2002-03 (Rs. 9,79,764/-), F.Y. 2003-04 (Rs.63,33,168/-) and F.Y. 2004-05 (Rs.92,82,728/-); accounts were not audited and returns of income for such years in which total income exceed Rs. 50,000/- were not filed alongwith Form No. 10B. 3. This court while admitting the appeal has framed following substantial question of law:- "(i) Whether in the facts and circumstances of the case, the ITAT has n....

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.... the return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed." 5. He contended that tribunal has seriously committed an error in considering the issue and directing for registration. 6. Counsel for the respondent has taken us to the order of the Tribunal which reads as under:- "We find substance in the above contentions of the Ld. A.R. The activities of the applicant have been enumerated in Ss. 9 & 10 of the Seed Act placed on record on perusal of which it appears that the main object of the applicant society is to ensure the supply of proper seeds to the general farmers to protect thei....

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.... Ld. CIT as he had pointed out. The delay in moving the application for registration was also explained that it was due to bona fide belief that assessee is a part of government hence not liable to income tax. We also find from the record that in the case of similarly situated assessee i.e. Uttaranchal State Seed and Organic Production Certification Agency, Dehradoon the CBDT vide its letter dated 25.5.2006 has notified in the Gazette of India that the institution shall not be included in the total income of such person as assessable for the A. Yrs. 2002-03 to 2004-05 subject to certain conditions. A copy of this notification has been placed at page No.5 of the written synopsis. Similar notification has also been published in the gazette in....