TaxTMI 
TaxTMI 
2020 (1) TMI 1432
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....he case of the assessee are as under: The assessee society was formed on 16.06.2013 and got registered under The Societies Registration Act, 1860 on dated 26.09.2013 and thereafter applied for registration u/s 12AA of the Act which was declined by the Ld. CIT(E) Chandigarh vide order no. CIT(E)/Chd/12A/2014-15/2667 dated 17.03.2015. The assessee during the assessment year 2014-15 filed its return by declaring net income at 'NIL' on dated 19.02.2015 in ITR Form no. 7. The assessee's case was selected for scrutiny under compulsory manual selection of scrutiny. Thereafter questionnaire dated 12.05.2016 was issued to the assessee u/s 142(1) of the Act whereby the assessee was asked to furnish the information and supportive document....
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....e on the ground that the assessee society is neither registered u/s 12AA nor u/s 10(23C) of the Act and therefore rightly assessed as AOP by the AO. 3. The assessee being aggrieved, challenged the impugned order passed by the Ld. CIT(A) on both the addition, however at time of argument emphasized on the addition qua donation only, hence we are restricting our decision to the issue qua addition of Rs. 1,24,64,864/- only. 4. Having heard the parties at length and perused the material available on record. The assessee while relying on the order passed by the co-ordinate Bench at Chandigarh in the case of the Income Tax Officer Dharamshala v. Chime Gatsal Ling Monastery, Sidhbari, Dharamshala (ITNo. 216 to 219/Chd/2012) decided on 28.10.2014)....
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.... (Appeals), therefore, correctly held that since the assessee is assessed as an AOP and no registration under section 12AA of the Income Tax Act has been granted to the assessee, therefore, the provisions of section 12 of the Income Tax Act would not apply in the case of the assessee. The provisions of sections 11 and 12 of the Income Tax Act will only apply if the assessee is registered under section 12AA of the Income Tax Act. Therefore, on this reason itself, the departmental appeal is liable to be dismissed. Further the Assessing Officer took the status of the assessee to be AOP but it is a fact established on record that the assessee collected the donation for construction of temple and used the same donation specifically for the purpo....
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.... upon the order of .the I.T.A.T., Agra Bench in the case of ITO Vs. M/s Gaudiya Granth Anuved Trust, Mathura (supra), in which identical question was involved in which the assessee Trust was also not registered under section 12A of 12AA of the Income Tax Act and the Tribunal referring to other decisions of other Benches of the Tribunal dismissed the departmental appeal. Copy of the order is placed on record. Therefore, the issue is covered in favour of the assessee by the above order of the I.T.A.T., Agra Bench. Considering the totality of the facts and circumstances, we do not find any merit in the departmental appeal and the same is dismissed. 9. In the result, all the appeals filed by the Revenue are dismissed and the Cross Objection....
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....d 2nd August, 2013 further held because in that case as well, the society was not registered u/s 12AA of the Act, and therefore the issue covered in favour of the assessee by the above order of the ITAT Agra Bench. 8. Coming to the instant case, admittedly during the assessment year under consideration, the appellant society was not registered u/s 12AA of the Act, however it is a fact that the appellant society has shown the amount of Rs. 1,24,64,864/- as on 31st March, 2014 as opening balance in the corpus fund account/capital account. Further appellant society has shown the amount of Rs. 1,04,63,627/- {99,33,000/- on account of land account and Rs. 5,30,627/- on account of building (work in progress)}. It is undisputed fact that since 26....
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....claimed that the Revenue department would have sought the clarification from the appellant society to the effect as to whether the donation collected has been utilized for the purpose of construction of temple specifically and as to whether the assessee has been doing any other activity against the aims and objects of the society and as to whether there is any receipt in the hands of the society in the nature of income. 10. We realize that the authorities below failed to exercise on the aforesaid situations and passed the order on conjectures and surmises and hence in the interest of justice we are inclined to partly set aside orders passed by the authorities below and to remand back the issue qua addition of Rs. 1,24,64,864/- to the file ....