Rajasthan Housing Board v. CIT

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The Tax Publishers2012 TaxPub(DT) 2333 (Jp-Trib) : (2012) 046 (II) ITCL 0574 : (2012) 148 TTJ 0068 : (2012) 051 SOT 0383 : (2012) 019 ITR (Trib) 0524 INCOME TAX ACT, 1961 --Charitable trust--Registration under section 12AAReceipts for activities exceedings a certain therehold--Assessee was granted registration under section 12AA on 29-5-2009 with effect from 27-3-2008 in pursuance of order of the Tribunal. CIT observed that the institution was granted registration on account of carrying out the work for charitable purposes by way of advancement of any other object of general public utility as per prevailing provisions. However, in view of amendment in section 2(15) by Finance Act 2008 w.e.f. 1-4-2009, the advancement of any other object of general public utility shall not be a charitable purpose, If the total receipts exceed of Rs. 10 lakhs. Accordingly, he held that assessee was not a charitable institution within the meaning of section 2(15) and, therefore, he withdrew the registration granted under section 12AA w.e.f. assessment year 2009-10 onwards. Assessee submitted that provisions of section 2(15) have no link with registration under section 12AA but a direct link of exemption under section 11 if receipts of the institution exceed Rs. 10 lakhs than in that case only exemption under section 11 may not be allowed in that particular year in which year receipts have exceeded Rs. 10 lakhs. Held: If in any year, the gross receipts of the institution exceeds Rs. 10 lakhs or Rs. 25 lakhs, as the case may be, then in that year, AO is empowered to examine the allowability of exemption under section 11 but the same has no effect on granting the registration under section 12AA. Therefore, CIT was not justified in holding that in view of amended provisions of section 2(15), assessee did not remain a charitable institution and accordingly withdrawal of registration was not justified. Income Tax Act, 1961, Section 12AA IN THE ITAT, JAIPUR 'B' BENCH R.K. GUPTA, J.M. & SANJAY ARORA, A.M. Rajasthan Housing Board v. CIT ITA No. 100 (JP.) of 2012 & Stay Application No. 5 (JP.) of 2012 A.Y. 2009-10 4 May, 2012 Income Tax Act, 1961, S. 12AA Decision: In assessees favour. ORDER This appeal and Stay Application filed by the assessee are against the order of Commissioner relating to assessment year 2009-10. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2012 TaxPub(DT) 2333 (Jp-Trib) : (2012) 046 (II) ITCL 0574 : (2012) 148 TTJ 0068 : (2012) 051 SOT 0383 : (2012) 019 ITR (Trib) 0524

INCOME TAX ACT, 1961

--Charitable trust--Registration under section 12AAReceipts for activities exceedings a certain therehold--Assessee was granted registration under section 12AA on 29-5-2009 with effect from 27-3-2008 in pursuance of order of the Tribunal. CIT observed that the institution was granted registration on account of carrying out the work for charitable purposes by way of advancement of any other object of general public utility as per prevailing provisions. However, in view of amendment in section 2(15) by Finance Act 2008 w.e.f. 1-4-2009, the advancement of any other object of general public utility shall not be a charitable purpose, If the total receipts exceed of Rs. 10 lakhs. Accordingly, he held that assessee was not a charitable institution within the meaning of section 2(15) and, therefore, he withdrew the registration granted under section 12AA w.e.f. assessment year 2009-10 onwards. Assessee submitted that provisions of section 2(15) have no link with registration under section 12AA but a direct link of exemption under section 11 if receipts of the institution exceed Rs. 10 lakhs than in that case only exemption under section 11 may not be allowed in that particular year in which year receipts have exceeded Rs. 10 lakhs. Held: If in any year, the gross receipts of the institution exceeds Rs. 10 lakhs or Rs. 25 lakhs, as the case may be, then in that year, AO is empowered to examine the allowability of exemption under section 11 but the same has no effect on granting the registration under section 12AA. Therefore, CIT was not justified in holding that in view of amended provisions of section 2(15), assessee did not remain a charitable institution and accordingly withdrawal of registration was not justified.

Income Tax Act, 1961, Section 12AA

IN THE ITAT, JAIPUR 'B' BENCH

R.K. GUPTA, J.M. & SANJAY ARORA, A.M.

Rajasthan Housing Board v. CIT

ITA No. 100 (JP.) of 2012 & Stay Application No. 5 (JP.) of 2012

A.Y. 2009-10

4 May, 2012

Income Tax Act, 1961, S. 12AA

Decision: In assessees favour.

ORDER

This appeal and Stay Application filed by the assessee are against the order of Commissioner relating to assessment year 2009-10.