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2022 (2) TMI 641
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....ct of 1860 and also u/s 12A of Income Tax Act, 1961 vide no. DLI(c)(I-696) dated 22.9.76 and granted exemption u/s. 80G vide DIT(E)/2005-X)6/C0141/76/376 dated 20.5.2005 exemption valid up to 31.3.2008. The Members of the CAS A society are 24 Protestants and Orthodox churches in India. These Churches are represented by various Church officials nominated by the respective Church Councils. If the members of Churches wish to change their nominee on the CAS A Society, they can do so as per constitution of the organization. The basic aim and object of the society is to undertake, promote and assist in development in the upliftment of the poor, needy, backward, under privileged and handicapped people irrespective of caste, creed or colour by itself or in collaboration with others and undertake to assist emergency relief make for the victims of flood, famine, earthquake and other disasters, assist in resettlement and rehabilitation, of displaced persons and repatriates. 3. During the course of assessment proceedings various details were filed as asked for by the AO. Books of account were also produced which were examined on test check basis. The AO noted that the assessee continues to ....
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....w with evidence that any particular donor is not an assessee. The only evidence furnished by the assessee is affidavit sworn by Sh. Michael Masih, Head of Finance of the assessee Trust stating that foreign donors are not assessees. Since Sh. Michael Masih is not competent to swear on behalf of the foreign donors and no other evidence was furnished by the assessee trust to show that foreign donors are not assessees as per the Income Tax Act, therefore, this argument of assessee remains unsubstantiated. 6.2 So far as the argument that even the donations of Rs. 8,17,015/- from local donors are not taxable because the amount has been utilized for the relief of Gujarat Earthquake victims before 31.3.2003 is concerned, the AO held that this argument has no merit because notwithstanding the fact that donation has been utilized, non-furnishing of accounts to the prescribed authority in the prescribed manner, is in itself a sufficient condition u/s 12(3) for deeming the donation of Rs. 8,17,015/- as taxable income. 6.3 The AO also rejected the contention of the assessee that the deeming provisions are effective and applicable only after 30.6.2004 which pertains to assessment year 2005....
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.... default under any provision of this Act. " From the above definition it is seen that the word assessee has a wide meaning and one fails to understand how the appellant can furnish an affidavit on behalf of the donors that they are not assessee. Such an affidavit has no relevance. 5.3 It is further seen that the appellant moved an application and had the account prepared the Form 10AA which were filed before the Director General of Income Tax(Exemption) on 27/03/2006. The Director General of Income Tax(Exemption) rejected the accounts which were produced in Form 10AA on the ground that the assessee had submitted the accounts after the due date i.e. 30/06/2004 and that he did not have any power to condone the delay. There after the assessee moved the Hon'ble High Court on this issue. The High Court in his order dated 22/01/2010 has restored the matter back to the file of Director General of Income Tax(Exemption) observing that the time limit for filing Form 10AA is only directory and not mandatory and hence it can be filed even beyond the stipulated date which in this case was 30/06/2004. 5.4 The Hon'ble Court has observed "In the present case, the petitio....
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.... entire details and information of donors like affidavit, confirmation, and financials, etc. and completely ignoring the fact that the Donations were received for the purpose to give immediate relief, help, and rehabilitation of victims of Gujarat Earthquake and the same have been utilized for the said purpose. 3. Whether the Ld CIT(A) is justified in confirming the order of A.O, wherein the assessing officer has considered the foreign donors as assessees' under the Income Tax Act, 1961 by ignoring the admitted facts that the assessee society is already registered under FCRA and is entitled to receive the foreign contribution for charitable activities and therefore it is out of the purview of section 2(7) /12(3) of the Income Tax Act, 1961. 4. Whether the Ld CIT(A) is justified for not considering the form FC-3 filed by the assessee society under the FCRA, 2010 which has been duly assessed with the Ministry of Home Affairs. 5. Whether the Ld CIT(A), as well as A.O., is justified by not granting exemption even without disputing the facts that the entire donation was neither unutilized nor there was a violation of the act by way of no charitable activit....
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.... the Hon'ble High Court also minute details were given based on which the Hon'ble High Court directed the CBDT to decide the application for condonation on merit and the SLP filed by the Revenue against the order of the Hon'ble Delhi High Court was dismissed by the Hon'ble Supreme Court. Further, the society is registered under FCRA and is entitled to receive the foreign contribution for charitable activities and therefore out of the purview of section 2(7)/12(3) of the IT Act. He submitted that the requisite forms were filed before the Ministry of Home Affairs and they have accepted the same without any further query. He accordingly submitted that the order of the ld.CIT(A) be set aside and the grounds raised by the assessee be allowed. 12. The ld. DR, on the other hand, submitted that since the matter has not been examined, therefore, he has no objection if the matter is restored to the file of the AO for verification. 13. We have considered the rival arguments made by both the sides, perused the orders of the Assessing Officer and CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find, the assessee,....
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...." An application was filed by the applicant, Church Auxiliary for Social Action, in the office of the then Director General of Income-Tax (Exemptions),Delhi on 10.07.2015 for condonation of delay in filing Form 10AA for the A.Y 2004-05. The Form.l0AA was filed on 31.03.2006 as against due date 30.06.2004. 2. The assessed society is a charitable society registered u/s 12A and 80G of the I.T Act, 1961. The main objectives of the society are to undertake, promote and assist in the uplift of the poor, needy, backward, underprivileged and handicapped people and to assist emergency relief work for victims of flood, fire, earthquake and other disasters. 3. The society had received donations for Gujarat Earthquake Relief Fund during the period from 26.01.2001 to 30.09.2001 and the entire amount was spent on or before 31.03.2003. Form 10AA was submitted on 31.03.2006 and subsequently revised Form 10AA was filed on 29.09.2006. 4. The assessee society, then filed an application before the DGIT (Exemptions) seeking condonation of delay in filing of Form 10AA. The application was rejected by ADIT (Exemptions) vide letter dated 08.08.2006 stating that the application c....
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....e CBDT vide order dated 04.09.2018 and the case of the applicant is considered fit for grant of Condonation of delay in filing of Form 10AA for AY 2004-05. 9. In view of the above, the delay of the assessee in submission of revised Form 10AA for AY 2004-05 on 29.09.2006 is hereby condoned u/s 119(2)(b) of the Income Tax Act, 1961. 10. This order is only, for the purpose of Condonation of delay in filing intimation of details of accounts u/s 80G (5C) (v) of the I.T Act for providing relief to the victims of the earthquake in Gujarat in Form 10AA. The acceptance of the contents of Form 10 AA is the subject matter of the examination of the Assessing Officer concerned. Sd/- (Sunita Puri) Pr.Chief Commissioner of Income Tax (Exemptions), New Delhi." 16. We find, the AO, at page 1 of the assessment order, has mentioned that the AR of the assessee attended from time to time and filed the details as asked for. Similarly, at page 2 of the assessment order, the AO has mentioned as under:- "During the course of assessment proceedings various details have been filed and the same have been placed on record. Books of account have been produced and examin....
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....y the ld. DR. We further find the assessee has filed Form No.FC-III-FCRA-2010 which has been duly assessed with the Ministry of Home Affairs, Government of India. Under these circumstances and considering the fact that since the assessee, during the course of assessment proceedings, has produced the relevant details and produced the books of account which have been gone through by the AO and no other defects were pointed out, therefore, considering the totality of the facts of the case and this being a very old matter relating to AY 2004-05, the argument of the ld. DR that the matter should be remanded back to the AO for verification, in our opinion, is not justified. We, therefore, set aside the order of the CIT(A) and direct the AO to allow the exemption. 19. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on 09.02.2022. ============= Document 1 F.No.200/72/2007-ITA-1 Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes (ITA-1 Division) ***** ORDER U/S 119(2)(b) OF INCOME TAX ACT, 1961 Name & Address of the Church's Auxiliary for Social Action, Assesses/Appl....