2019 (6) TMI 139

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....AA(2) as the objects of the trust were not same in the year in which exemption was claimed and the year in which exemption u/s 12AA was given ignoring the fact that amendment in trust deed was made to make the objects of the trust more clear and the amendment was made in the original trust deed to be effective from the date of creation of trust, thereby assessing the following receipts as income:- 2. Briefly stated, the facts of the case are that the assessee trust was constituted on 14.12.2000 with various charitable objects as mentioned in the trust deed. An application for registration u/s 12AA of the IT Act, 1961 was filed on 25.05.2015. The same was rejected by Ld. CIT(E) vide order dt. 16.12.2015 on the ground that trust has been cre....

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....i.e. from 19.09.2018. 3. For AY 2013-14 & 2014-15, the AO, after rejection of the original application u/s 12AA by Ld. CIT(E) reopened the assessment u/s 148; for AY 2015-16, the case was selected for scrutiny; and for AY 2016-17 processing was done by CPC where the receipt was assessed to tax without deduction of expenditure on the ground that assessee is not registered u/s 12AA of the Act/ the CIT(E) has not yet passed the order for registration in pursuance to the direction of Hon'ble ITAT. 4. In the appellate proceedings before CIT(A), assessee furnished the order u/s 12AA passed by Ld. CIT(E) and contended that in view of proviso to section 12AA(2), the benefit of section 11 should be allowed to the assessee since the creation of the....

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....ange. Only to bring more clarity, certain words in the object clause were replaced as if the same were in the original trust deed. Therefore, AO be directed to allow benefit of exemption u/s 11 to the assessee in the AYs under consideration. 6. Without prejudice to above, it was submitted by the ld AR that the lower authorities have assessed the gross receipt as income ignoring the expenditure incurred by the assessee. The gross receipts, expenditure incurred and the surplus/ deficit as per Income & Expenditure A/c of the AYs under consideration is as under:- AY Gross Receipts Expenditure Surplus/ Deficit 2013-14 Rs. 3,14,665/- Rs. 3,25,690/- (Rs. 11,025/-) 2014-15 Rs. 4,34,675/- Rs. 4,22,590/- Rs. 12,085/- 2015-16 ....