TaxTMI 
TaxTMI 
TaxTMI 
2025 (1) TMI 324
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.... Widows Deprived and needy Army dependents of serving and retired Army personnel. It basically supports the widows to help them to cope with their loss by also addressing any concerns they may have. It also runs Asha Schools for special needy children and currently running all over the country under the aeges of AWWA (the assessee). This Association is being run and managed by Army Wives, a non-public fund established for only army welfare and no benefit is passed on to general public. It was submitted before the tax authorities that this Association should be covered under section 10(23AA) of the Income-tax Act, 1961 (for short 'the Act'). It was also submitted that there is no requirement of filing of income-tax return for taking exemptio....
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.... submissions of the assessee, ld. CIT (A) gave relief to the assessee on the issue of addition made by the AO of Rs. 1,42,25,0002/- on account of taxable surplus by not granting the exemption u/s 11 of the Act. Ld. CIT (A) proceeded with the various charitable activities carried on by the assessee and also observed that the assessee contested that it is registered as charitable society within the definition of section 12A of the Act and also observed that the assessee has applied the total receipts more than 85% for the charitable purposes and he observed that activities carried out by the assessee are in line with objects of section 12A registration granted to the assessee. With the above observations, he deleted the additions made by the ....
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.... he deleted the addition. 10. Further with regard to addition of Rs. 2,00,000/- on account of variation in receipt and payment to contractors, he dismissed the same and sustained the addition made by the AO. 11. Aggrieved with the above order, Revenue is in appeal before us raising following grounds :- "1. The Ld.CIT(A) has erred in law and facts by allowing relief to the assessee on account of additions of Rs. 1,21,46,605/-(unexplained cash deposits) made u/s 69A r.w.s.115BBE of the I.T. Act by entertaining additional evidences in violation of provisions of rule 46A of I.T. Act, 1961. These evidences never filed before AO during assessment proceedings even providing sufficient opportunities of being heard. 2. The Ld.CIT(A) has erred ....
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....s to justify its claim of huge expenditure of Rs. 8,67,49,278/-. 5. The Ld.CIT(A) has erred in law and facts by allowing relief to the assessee on account of addition of Rs. 5,37,280/- made by AO on account of bank interest by ignoring the fact that assessee not filed and ITR even not filed any documentary evidences before the AO during assessment proceedings to justify its claim. 12. At the time of hearing, ld. DR for the Revenue submitted that the assessee is a non-filer of return of income, notice u/s 148 of the Act was issued to the assessee to file the return of income. In response, assessee has not filed any return of income. Subsequently notices u/s 142(1) of the Act were issued to the assessee to furnish the documents and trust d....
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....ought to our notice letter submitted by the assessee before the AO and submitted that assessee has applied more than 85% of the income towards charitable purposes. Further he brought to our notice page 45 of the paper book which is application u/s 12AA of the Act on 26.07.1975 and finally he prayed that the issue may be remitted back to AO for proper appreciation of facts on record. 14. Considered the rival submissions and material placed on record. We observed that assessee is a charitable institution and had granted for 12A registration by CIT, Delhi-II, New Delhi on 26.07.1975. Assessee has placed copy of the registration at page 45 of the Paper Book. No doubt, assessee was granted registration nu/s 12A of the Act and it is also a fact ....
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....e exemption under section 10(23AA) at the time of assessment but entitlement for it was required to be decided by CIT(Appeals) and the tribunal." 15. Further we noticed that considering the 12A registration in the case of the assessee, ld. CIT (A) has granted relief that assessee has applied for charitable purposes more than 85% of the revenue. However we observed that assessee is falling under non-filer category and has not filed any return of income until the notice was issued to the assessee by the Assessing Officer. Therefore, as per the provisions of section 139(4)(a) of the Act, it is obligation on the part of the assessee who were claiming the benefit u/s 11 of the Act has to file its return of income u/s 139 of the Act to claim the....