TaxTMI 
TaxTMI 
2021 (8) TMI 1157
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....earned Commissioner of Income Tax has erred in holding that there is a manipulative treatment of funds and there is an absence of documentary evidences of the donations, despite the fact that all the documentary evidences are a part of Record of the Ld. CIT. 5. That, the Learned Commissioner of Income Tax has erred in holding that an Appellant cannot shift from one code (Section 10(23C) of the Act) to another code (Section 12AA of the Act) despite the fact that the objects of the Appellant Society are not restricted to the Educational Activities alone and despite the fact that all the evidences with regard to the above are a part of Record of the Ld. CIT. 6. That the Learned Commissioner of Income Tax has erred in holding that the Appellant does not qualify for the Registration under Section 12AA of the Act 7. That the Appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed off. Brief facts and submissions of assessee 1. The appellant society had applied for registration under section 12AA of the Income Tax Act however the registration was rejected by the CIT exemption on the ground that the assessee had received lo....
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.... DCIT (Hq) Exemption, Chandigarh asked to provide the details of surplus earned by the applicant society from educational operation run by it since the FY in which such operation had started? VI. The assessee stated that it is already submitted that the applicant society started the educational activities in Bajaj College in the FY 2015-16. Further, the assessee has already furnished the copies of financial statements of the applicant society for the FY 2015-16 and 2016-17 before DCIT (HQ) Exemption at the time of filing an application u/s. 12AA of the Act. The following are the relevant details: FY Gross Income(INR) Revenue Exp. Other than Depreciation Surplus or (Deficit) before Depreciation Depreciation (INR) Surplus or (Deficit) after Depreciation (INR) (INR) (INR) (1) (2) (3) (4) (5) (6) 2015- 16 13,78,860 31,63,811 17,84,951 39,98,361 57,83,312 2016- 2017 99,14,470 78,05,472 21,08,998 34,86,185 13,77,187 VII. From the above details, it can be construed that the Applicant Society had not earned any surplus after Depreciation. Therefore, the wh....
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.... order dated 23.9.2009 which deals with the issue of corpus donation in respect of the non registered charitable trust. 7. The Ld. DR for the revenue relied upon the order passed by the lower authorities. 8. We have considered the rival contention of the parties and perused the material available on record, including the judgments cited at bar during the course of hearing by both the parties. 9. The CIT exemption while denying the registration to the assessee, in paragraph had wrongly mentioned that as the assessee has shifted from the regime of 10(23C) to 12AA, the same is not permissible in the law and therefore the CIT exemption has denied the registration. Further CIT exemption in paragraph 8 had mentioned above the acceptance of loan by the assessee in the previous year and thereafter the assessee in the financial year 2015-16 had claimed that the loan received by were in the nature of donation. In paragraph 7 the CIT had mentioned as under "7. In response to the additional queries the applicant society submitted the reply. As regards the reason for shifting from section 10(23C) (iiiad) to section 12AA of the Income Tax Act, the applicant has contended that t....
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....eme of the Act that provisions for two different sets of codes with different parameters as also conditionality. It's also relevant in the particular case that the character and objects of the applicant have not changed to warrant a change in the code of exemption that has a completely different set of conditions. This contention of the applicant is certainly not acceptable." 10. In our considered opinion the reasoning given by the CIT exemption cannot be countenanced as the same is contrary to the law laid down by the honourable jurisdictional High Court in the matter of Beant College of Engineering & Technology* [2019] 108 taxmann.com 196 (Punjab & Haryana). Therefore this ground of rejection is not sustainable and therefore we reject the same. 11. Another reason for rejection given by the CIT exemption was with respect to acceptance of loan and thereafter in the financial year 2015-16, alleging it to be the donation 12. In our considered opinion at the stage of grant of registration two issues were required to be examined namely whether the purposes of the assessee are charitable in nature and secondly to find out whether the activities of the assessee are genuine o....