TaxTMI 
TaxTMI 
2024 (6) TMI 1363
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.... the assessee by claiming the exemption u/s 11 of the Income Tax Act, 1961 ('the Act' for short) and the return was processed u/s 143(1) of the Act. While processing the return of income u/s 143(1), the Assessing Officer rejected the claim of the assessee u/s 11 of the Act, as the assessee has not filed the registration certificate u/s 12A of the Act and observing that assessee is not a registered Trust, he brought to tax total receipt of the assessee of Rs. 16,27,273/-. 3. Aggrieved with the above order, the assessee preferred an appeal before Ld. CIT(A) and Ld.CIT(A) sustained the addition with the observation that the registration of claim u/s 11 of the Act is not proper within the mandate of Section 143(1) of the Act. Further, he obser....
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....T (A)'s in basing her order on filing ITR in ITR Form 7 & not independently applying her mind is illegal arbitrary, unwarranted uncalled for and against the facts and circumstances of the case. 5. On facts & in law the Ld. ADDL/JCIT (A)'s erred in not deciding the issue of taxability of income as per law & not giving any opportunity of hearing to the appellant. 6. The Ld. ADDL/JCIT (A)'s erred in law as well as on facts without considering the past history of the appellant where Income has been exempted by revenue Authorities on principle of mutuality. 7. In law as well on facts the Ld. ADDL / JCIT (A)'s erred in not repelling the submission made that in Schedule ER the application of income to the extent of Rs. 23,64,....
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....hdraw or modify any ground of appeal. h) The above grounds are without prejudice to each other." 5. At the time of hearing, the Ld. AR submitted that the assessee prefers to press only ground No.3 and all other grounds are not pressed. In this regard, he submitted that the assessee is a Company incorporated under Section 26 of the Indian Companies Act, 1913 on 23rd December, 1925 as non profit - no loss company. The consultant has filed the return of income wrongly claiming deduction u/s 11 of the Act, however, he submitted that assessee is not a registered concern u/s 11 of the Act, therefore, the assessee cannot claim any benefit u/s 11 of the Act, since, the Assessing Officer has brought to tax the gross receipt as income of the asses....
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....milar facts on records, the ITAT, Bengalore has decided and held as under:- "7. I have heard the rival submissions and perused the material on record. During the course of hearing, on query by the Bench, it was mentioned by the learned AR that assessee does not have registration under section 12AA nor under section 10(23C) of the Act. In the absence of the registration under the aforesaid sections, there cannot be any application of income. However, the gross receipts cannot be taxed in the hands of the assessee-trust. The income earned by the assessee and expenditure relatable to the earning of such income is to be allowed as a deduction. The Bangalore Bench of the Tribunal in the case of HMV Educational Cultural and Social Trust (supra)....