TaxTMI 
TaxTMI 
2026 (6) TMI 854
X X X X Extracts X X X X
X X X X Extracts X X X X
....d 13.02.2024 passed by the AO u/s. 143(3) r.w.s 144B of the 1961 Act . 2. Brief facts of the case are that the assessee filed its return of income u/s. 139 for the impugned assessment year on 25.09.2022, declaring income of Rs. NIL after claiming exemption. The case of the assessee was selected for framing complete scrutiny assessment, and the AO issued notice dated 28.06.2023 u/s. 143(2) of the 1961 Act to the assessee. One of the reason for selection of the case of the assessee for scrutiny assessment was that the application for registration u/s. 12A/12AB filed by the assessee on 05.05.2022 has been rejected by ld. CIT(E) vide order dated 17.11.2022, and the assessee has claimed exemption u/s. 11 of the 1961 Act. Statutory notices u/s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essee has not furnished any order of ld. CIT(E) pursuant to direction of the Tribunal, that the rejection order has been withdrawn or the assessee has been allowed to claim exemption u/s. 11 of the 1961 Act. The AO while framing assessment held that the assessee does not hold valid registration for the year under consideration. The AO observed that the assessee has claimed exemption u/s. 11 of the excess of income over expenditure to the tune of Rs. 1,70,635/-, which exemption AO denied and added the same to the income of the assessee. Further, it was observed by the AO that the assessee has debited Rs. 3,10,239/- in income and expenditure account towards 'Gyan Kendra Infrastructure Expenses' which is capital in nature and not allowable as ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat the AO has passed the assessment order after due application of mind and after affording opportunity of being heard to the assessee. Thus, as per ld. CIT(A) the assessment order is in accordance with law and does not suffers from any legal or factual infirmity. The ld. CIT(A) observed that the assessee failed to demonstrate any error in the assessment order or any other grounds which would warrant interference with the findings of the AO . 4. Still Aggrieved, the assessee filed second appeal before the Tribunal. The Ld. Counsel for the assessee at the outset submitted that the assessee is a Charitable Trust. It was submitted that the assessee is running school . It was submitted that the assessee is working for up-liftment of underpr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ere is no tax payable by the assessee, which it was stated is not correct. The said notice of demand dated 13.02.2024 u/s. 156 is placed in PB at page 64. It was submitted that computation of income shows that the income computed by the AO is Rs. Nil and consequentially tax payable is Rs. Nil, which it was stated is again not correct. It was submitted that on this short ground itself the order of the authorities below ought to be quashed because Section 156 clearly stipulated that the AO shall serve upon the assessee notice of demand in the prescribed form specifying the sum so payable by the assessee in consequence of the assessment order framed by the AO. The ld. Counsel for the assessee relied upon the judgment and order of Hon'ble High ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ear 2021-22 to assessment year 2023-24. I am presently concerned with assessment year 2022-23. The application for final registration u/s. 12A(1)(ac)(iii) of the 1961 Act was rejected by ld. CIT(E) vide order dated 17.11.2022(PB/Page 30-34). The assessee filed first appeal with the Tribunal, and the Tribunal vide order dated 17.08.2023 in ITA no. 925/Del/2023(Page 35-37/PB) was pleased to set aside the order dated 17.11.2022 passed by ld. CIT(E) rejecting the application filed by the assessee for final registration, and the Tribunal restored the matter back to the file of ld. CIT(E) for fresh determination of the application of the assessee for final registration u/s. 12A of the 1961 Act. In the meantime, the assessment in the case of the a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ered view based on the facts and circumstance as enumerated above, this decision of ld. CIT(A) in denying exemption u/s. 11 and 12 for the assessment year 2022-23 is not in accordance with law, because it is the original application filed by the assessee on 05.05.2022 which was decided by ld. CIT(E) and the assessee was granted final registration for assessment years 2021-22 to 2025-26. The assessee was holding provisional registration for assessment years 2021-22 to 2023-24. Thus, the ld. CIT(E) decided the original application dated 05.05.2022 filed by the assessee for registration although at the direction of the Tribunal as the matter was remanded back to ld. CIT(E) by the Tribunal to decide afresh the application dated 05.05.2022. Thus....