2021 (11) TMI 254

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.... the submissions and documents placed on the file by the Appellant. So the order passed u/s. 12AA(1)(b)(ii) is bad in law and deserved to be annulled. 2. That having regard to the facts and circumstances of the case Ld. CIT Exemptions has erred in law and on facts in rejecting the registration u/s. 12AA of the Act and that too by recording irrelevant and incorrect facts and findings and without considering the submissions/details filed by the assessee more so when all the points raised by Ld. CIT Exemptions was satisfactorily replied to by the appellant. 3. That in any view of the matter and in any case, the action of Ld. CIT Exemptions in rejecting the registration under section 12AA is bad in law and against the facts and circumstance....

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....l form part of the corpus) are the income of a charitable, religious or charitable cum religious trust. Therefore, in the present case, the corpus fund shown by the applicant on record during FY 2014-15 and 2016-17 (and for any other previous year) is the income of the applicant and, thus, the trust/society becomes liable to pay tax for that year. Further, this income has not been shown in the ITR filed for respective assessment years i.e. A.Y. 2015-16 and 2017-18 corresponding to F.Y. 2014-15 and 2016-17 and, therefore, no tax against the said income has been paid. The applicant should have added the amount shown against corpus/restricted funds during the year into its income and then it should have filed the correct ITR and paid taxes. ....