26 August 2011
The Facts of the Case are as below:
1. An Educational Society was established in the year 1996. It has had been running a Polytechnic College approved AICTE, New Delhi. Upto the F.Y. 2009-10, the Gross Receipts (Fees from students) did not cross Rs.1 Crore and the Society is enjoying the Blanket Exemption u/s.10(23C)(iiiad) of the Income Tax Act, 1961.
2. Whereas, for the year ending 31.03.2011, the Society's Gross Receipts EXCEEDED Rs. 1 Crore. However, by expecting this, the Society applied for 12A REGISTRATION on 29.03.2011 for grant of exemption u/s.11 with the concerned Commissioner of Income Tax. 3. Whereas, during the proceedings u/s.12AA, the CIT satisfied with the Society Objects, Books of Account and other records, but asked to
“show grounds why he should not reject the society’s application for Registration u/s.12A, in the background that the society failed to file income tax returns for the last 3 years, without which he cannot proceed further.”
We contended that “SO FAR THE EDUCATIONAL SOCIETY, WHICH IS SOLELY OPERATED FOR EDUCATIONAL PURPOSES AND THE ANNUAL RECEIPTS ARE NEVER CROSSED Rs.1 Crore AND FALLS UNDER SEC.10(23C)(iiiad) AND THERE IS NO OBLIGATION TO FILE A RETURN OF INCME.” WHEREAS, now we applied for Registration u/s.12A (opted for alternate methodology instead of sec.10(23C) exemption) and hence, there would be no Return of Income, this being the first year for the purposes of Sec.12A Registration.”
4. with the above contention, the CIT, did not satisfy and asked us to quote the specific provisions under the Income Tax Act that allowed the Society not to file returns so far. Also, the CIT asked how to process the application under the procedure mentioned in Sec.12AA, without enclosing the copies of Returns filed for the last 3 years.
5. In the above background, we seek guidance from the experts:
a) whether, is there any provision that insists filing of previous 3 years returns for process of Application in Form No.10A to get Registration u/s.12A.
b) Can the Commissioner of Income Tax insist for 3 years previous returns to process the case u/s.12AA;
c) how to convince the CIT in the above background to not to reject our application for Registration u/s.12A;
27 August 2011
iN TERMS OF SECTION 139(4C) YOU WERE REQD TO FURNISH RETURN OF INCOME COMPULSORILY THERE IS FAILURE IN THIS REGARD HOWEVER THIS FAULT CANNOT COME IN THE WAY OF GRANTING REGISTRATION CA MANOJ GUPTA JODHPUR 09828510543
28 August 2011
Thanks to CA Manoj Guptaji. Please clarify me regarding filing of returns u/s.139(4C); As per Sec.139(4C) Returns are not required for an educational institution covered by Sec.10(23C)(iiiad), whereas it is compulsory for the institutions covered by other sub sections of Sec.10(23C) viz., SEc.10(23C)(iv) or (v) or (vi); Please clarify whether my intention is correct or not; If that be the case, how could we contend (on which grounds) the proposed refusal of Sec.12A Registration by the CIT
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