TaxTMI 
TaxTMI 
2023 (3) TMI 471
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....e has taken the following ground: "1. That the Id.CIT(E) has misdirected himself in law and on facts in arbitrarily rejecting the assessee's application for registration u/s. 12A, on issues not relevant for grant of registration, more so when the genuineness of the activities of the trust, otherwise exempt u/s.10(23C)(iiiae), have not been doubted. 2. That the ld.CIT(E), grossly erred to hold that the assessee was liable to pay tax on corpus donations in AY 2018- 19 & 2019-20, and till such payment of tax, application for registration could not be considered. 3. That ld.CIT(E) also erred in denying the grant of registration, for the alleged FCRA violations. 4. That the order under appeal is against la....
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.... only when such assessee is registered u/s 12A or 12AA. This assertion is not only backed by the statute but also by the decision of Hon'ble Supreme Court in the case of CIT vs. U P Forest Corporation, 230 ITR 945 (SC) [1998] and decisions of various other Hon'ble High Courts like: (A) New Life in Christ Evangelsit Association vs. CIT reported in 246 ITR 532 (Madras) [2001 ];(B) CIT vs. Red Rose School reported in 212 Cl'R (All) 394;(C) M. Visvesvaraya Industrial Research & Development Centre vs. ITAT reported in 251 ITR 852 (Mumbai) [ 2001];(D) CIT vs. Otacamund Gymkhana Club reported in 110 ITR 392 (Madras) [1977] and(E) Gouri Shankar Deity vs. Union of India 145 ITR 67 (MP) [1984]. Before the period of grant of registration,....
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....n the rejection order has mentioned that receipt of foreign contribution without valid permission from MHA is a serious violation of FCRA 2010 and may attract appropriate penal action if found. This act of the applicant is unacceptable 8. In light of the above discussion, I do not find the applicant trust eligible for getting registration u/s 12AA of the Act and, therefore, the present application for registration u/s 12AA of Income Tax Act, 1961 is hereby rejected." 3.1 The ld. counsel for the assessee further placed that the ld. CIT(E) had not pointed out any objection related to the main object of the trust and the activities of the trust related to main object. The assessee filed application to FCRA against the foreign inves....
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....der section 12AA of the Act has been granted to the assessee by the learned CIT w.e.f 1.4.2009 which is before the date of the assessment order passed on 30.12.2011 and obtaining registration under section 12AA is not mandatory for claiming the exemption under section 10(23C) (iiiad) of the Act. As per this section, any income received by any person on behalf of any university or other educational institution existing solely for educational purposes and not for the purpose of profit is exempt if the aggregate annual receipt of such university or educational institute do not exceed the amount of annual receipt as may be prescribed. The learned CIT(Appeals) has upheld the denial of exemption by the Assessing officer on the basis that no educa....
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....an additional income of society and cannot be considered to be part of annual receipt of the school. It was held that the assessee was eligible for exemption under section 10(23C)(iiiad) of the Act as annual school receipts did not exceed Rs. 1 crore. In the case of CIT vs. Doon Foundation (supra), it has been held that if the assessee had taken steps towards the running of a full fledged teaching course then it would be construed that educational institution had been established and it will be entitled for exemption. In the present case before us, objects of the assessee trust being charitable have not been objected nor has it been a case of the revenue that the donation in the shape of land or amount have been utilized for any other purp....
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....terial available on record and gone through orders of the authorities below. Our observation is that the Corpus donations received by the Trusts, which is not registered u/s.12A/12AA of the Act, are not taxable as they assume the nature of 'Capital receipt' the moment the donations are given to the "Corpus of the Trust". We find the provisions of section 2(24)(iia)/12(1)/11(1)(d)/35/56(2) are relevant for deciding the current issue. It is a settled legal proposition, in case of a registered Trust under the Income-Tax Act, the corpus specific Voluntary Contributions are outside the scope of income as defined in section 2(24)(iia) of the Act due to their "Capital nature". But it is a case of un-registered Trust. Despite the detailed d....