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11. On the contrary, The Ld.DR vehemently supported the order of the AO & the Ld.CIT(A).
12. We have considered the rival contentions and submissions, perused the materials on record, including judicial pronouncements relied upon. Admittedly, the assessee is a Trust with charitable objects and was granted registration u/s.12AA of the Act, on 03.09.2018 w.e.f. AY 201819. The disallowance of exemption u/s.11 of the Act, was made by the AO considering the fact that the assessee was not having registration u/s.12AA of the Act, for the year under consideration while intimation u/s 143(1) was passed. It was also the fact that the assessee has claimed exemption being an Educational Institution while filing its return of income on 29.09.2014 for the AY 2014-15, but the same was denied vide order u/s.143(1) of the Act dated 28.02.2016. Subsequently, the assessee had filed a petition for rectification u/s.154 of the Act, with the AO, but has not find any favour with a reasoning by the AO that, the assessee did not have registration u/s.12AA of the Act also the exemption u/s.10(23C)(iiiad) of the Act was claimed under rectification petition, the same cannot be considered as a mistake apparent from the record and thus, the rectification petition was rejected. In appeal, findings of the AO were accepted by the Ld.CIT(A) and dismissed the appeal filed by the assessee.
EDUCATIONAL INSTITUTION -- EXEMPTION -- REGISTRATION OF TRUST UNDER SECTION 12AA NOT MANDATORY TO CLAIM EXEMPTION UNDER SECTION 10(23C)(iiiad) -- INCOME-TAX ACT, 1961, ss. 10(23C)(iiiad), 12AA. During the course of registration proceedings under section 12AA of the Income-tax Act, 1961 the assessee- trust submitted audited accounts for the financial years 2006-07, 200708 and 2008-09. From the balance-sheet for the financial year 2006-07 relevant to the assessment year 2007-08, it was found that the trust had collected a sum of Rs.1,15,05,100 as corpus fund. The trust was neither registered under section 12AA nor under section 10(23C)(vi) during the assessment year 2007-08. The assessee-trust did not file its return for the assessment year 2007-08 relevant to the financial year 2006-07. A notice under section 148 was issued. The Assessing Officer held that as the assessee was not registered under section 12AA during the assessment year 2007-08, it was not eligible for exemption on account of corpus donation and the excess of receipts over expenditure was added to the taxable income, which was assessed at Rs.1,15,03,000. The Commissioner (Appeals) upheld the additions made by the Assessing Officer. On further appeal, the Tribunal accepted the plea of the assessee that it ran three educational institutions, that it had received donation of agricultural land valued at Rs.1.01 crore by a registered gift deed from V and three others, and that the assessee had received corpus donation of Rs.15 lakhs from three concerns, and held that since it was not the case of the Department that the objects of the assessee-trust were not charitable nor that the donation in the shape of land or amount had been utilized for any other purposes except on the objects of the assessee-trust the Commissioner (Appeals) was not justified in upholding the action of the Assessing Officer and accordingly directed the Assessing Officer to delete the addition treating the assessee as a registered trust with charitable objects. On appeal:
Held, dismissing the appeal, that the Tribunal while setting aside the orders of the authorities below had rightly directed the Assessing Officer to delete the addition treating the assessee as a registered trust with charitable objects. Of course, no educational activity had been started by the assessee during the assessment year 2007-08 but at the same time, the fact that the assets and funds received by it in donation were meant for achieving its objects had not been doubted. The registration under section 12AA had been granted to the assessee by the Commissioner, with effect from April 1, 2009 which was before the date of the assessment order passed on December 30, 2011 though obtaining registration under section 12AA was not mandatory to claim exemption under section 10(23C)(iiiad). According to this provision, 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 was exempt if the aggregate annual receipts of such university or educational institute did not exceed the amount prescribed. The findings of fact recorded by the Sivasakthi Educational Trust :- 8 -: