TaxTMI 
TaxTMI 
2022 (1) TMI 581
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....l are that this is second round of litigation. In the earlier round, the Tribunal had set aside the issue and restored back to the file of the Assessing Officer ("AO") to decide it afresh. The AO in pursuance of the order of the Tribunal dated 12.08.2015 passed the impugned order thereby, the AO yet again made an addition of Rs. 7,13,26,199/-. The basis of making addition by the AO is that the assessee trust was under statutory obligation to get its accounts audited and obtain the audit report with the prescribed time which was not done. 4. Aggrieved against this, the assessee preferred appeal before Ld.CIT(A) who after considering the submissions and material placed on record, deleted the addition. 5. Aggrieved against this, the Revenue is in appeal before this Tribunal. 6. Ld. Sr. DR vehemently argued that Ld.CIT(A) was not justified in deleting the addition. He submitted that in this case, it is not the case of the AO that the assessee failed to submit the requisite audit report in Form No.10B alongwith income tax return but in this case, the audit report itself was obtained after filing of the income tax return. Therefore, the AO was justified in declining the benefit ....
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....es who are the persons to be diverted and retained/ utilized by the for their benefit. The trust therefore, violated provisions of section 13(1)(c)(ii) read with section 13(2)(b) & 13(2)(g) of the Act. Therefore, exemption u/s 11 is being denied to the assessee." 9. Further, Ld. CIT(A) deleted the addition by observing as under:- 6.4. "I have considered the facts of the case, the written submissions as filed by the Ld AR for the appellant and perused the order of the AO passed in pursuance of the directions of the Hon'ble ITAT Agra. Besides, the directions as contained in the order of the Hon'ble ITAT, the remand report of AO and rejoinder submissions filed by assessee have also been perused with reference to the judicial pronouncements that have been relied upon by the appellant. The issue as involved in this appeal concerns the non admission of report in Form 10B by the AD and consequential denial of exemption to the assessee. While from the perusal of the directions of Hon'ble ITAT, it is clear that the AO was under directions of the Hon'ble ITAT to admit the report filed in form 10B, and allow the benefits available to the appellant u/s 11 and 12 of ....
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....on to complete the assessment denovo after affording due opportunity of being heard to the assessee, it is observed that the AO has made the impugned addition on the basis of the non submission of Report in Form 10B along with the original return filed by assessee. The AO without making any inquiry or discussing in requisite details about the assessee's claim of corpus donations received, has proceeded to make the impugned addition of Rs. 7,13,26,199/- with citing the sale reason as non submission of report by assessee. Though the AO has made the impugned addition on basis of corpus donations, however the same is well short of any discussion which ought to have been made by the AO, as the whole claim of assessee was up for examination by the AO in de novo proceedings. Even in the remand report submitted, the AO has not stated 'as to how corpus donations, can be added to the income of the appellant trust particularly when the assessee trust was granted registration u/s 12A of the Act. The AO has also not discussed even the findings given in the original assessment which was necessary if the AO wanted to follow or rely on such finding because the whole matter was referred bac....
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....in respect of which the AO tried to establish violation of provisions of section 13 of the Act, stands deleted by me vide order dated 28.02.2017 passed in relation to assessee trust appeal pertaining to AY 2009-10. As regards this issue, it is relevant here to refer to the decision of Hon'ble ITAT Agra which is rendered in the case of Income tax Officer vs M/s. Gaudiya Granth Anuved Trust, Mathura (ITA No.386/Agra/2012 order dated 02.08.2013) wherein the Hon'ble ITAT has held the corpus donations as capital receipts after observing as under :- "After considering the position of law as it is prevailing at present on the basis of decision of Three Tribunals i.e. ITAT, Chennai, ITAT, Delhi" arid ITAT, Kolkatta and further confirmed by the Delhi High Court, the corpus donation is in the nature of capital receipt and are not taxable, irrespective of the fact whether trust is registered u/s 12AA or not. Therefore, I agree with the Ld. AR that the amount of A.Y. 2007-08 Rs. 68,50,000/- being in the nature of corpus donation is not taxable under the Income Tax Act being in the nature of capital receipt and therefore, the addition of Rs. 68,50,000/- made by the AO towards t....