TaxTMI 
TaxTMI 
2022 (2) TMI 104
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.... he further held that return of income for AYs 2016-17, 2017-18 and 2018-19 was filed by the appellant in ITR-7 which was incorrect as the ITR-7 can be filed by the persons who are required to furnish return u/s. 139(4A), (4B), (4C) and (4D) of the Act and such return is to accompany with audit report u/s. 12A(b) of the Act. The ld. AR submitted that the ld. CIT(E) while rejecting application of assessee has held that since the appellant was not having registration u/s. 12AA of the Act he cannot filed ITR in Form 7 as per law and therefore he rejected the application of the assessee. Explaining the facts of the case, the ld. AR submitted that assessee had filed an application for registration earlier also which was not disposed of by ld. CI....
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....e is that he held that the assessee was not registered u/s. 12A of the Act and therefore it had violated various provisions of the Act and had wrongly claimed the income to be exempted u/s. 12A of the Act. For the sake of completeness the findings of ld. CIT(E) are reproduced below: "4.2 Further, the annual accounts submitted by the applicant as required under Rule 17A(1)(e) of Income Tax Rules, suffer from incorrectness and following errors: 1. The applicant has gross receipt of Rs. 1.04.33,129/- in F.Y. 2017-18 from donation, besides donation receipt for corpus of Rs. 47.5 lakhs. Applicant received donations of Rs. 40,88,362/- in F.Y. 2016-17 and Rs. 90,79,530/- in F.Y. 2015-16. The applicant does not have registration/approval U/s. 1....
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....by the applicant on NIL income which again is incorrect, as the Income and Expenditure account is showing Surplus of Rs. 65,93,899.39, Rs. 3,84,7377.86 and Rs. 12,66,753.05 respectively. Since the applicant is not registered under section 12AA of the Income Tax Act 1961, these figures could only have been declared by the applicant in ITR-5 of Return of Income as TOTAL INCOME, as the income of the applicant is not exempt from income tax under any provision. 4. In the Income and Expenditure account in respect of F.Y. ending 31.03.2016, 2017 and 2018, the applicant has shown income by way of donations amounting to Rs. 90,79,530/-, Rs. 40,38,362/- and Rs. 1,04,93,129/- respectively. Since the income of the applicant is not exempt from income ....
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....three years immediately preceding the year in which the said application is made) for which such accounts have been made up; 5.1 The applicant has already considered itself as exempted institution in F.Ys. 2015-16, 2018-17 and 2017-18 and has erroneously submitted such annual accounts on 12.09.2019, which being incorrect, are against the provisions of Income Tax Act and Rules, hence cannot be accepted. The statutory provision of Rule 17A(1)(e) has been clearly contravened and necessary compliance to it has not been made by the applicant, besides having also misreported his income. 6. The applicant has failed to make necessary statutory compliance and also failed to provide necessary satisfaction with regard to its objects and genuinenes....