DIRECTOR OF INCOME TAX Vs. VISHWA JAGRITI MISSION

JUDGEMENT

(1.) THE respondent-assessee is a society registered under the Societies Registration Act, 1860 vide order in Regn. No. S-24228 dated 10th May, 1993. For the purposes of assessment to income tax it is assessed in the status of "Association of persons". It had filed an application in Form No.10A on 21st December, 2005 for grant of registration under Section 12A of the Income Tax Act, 1961 ('Act' for short). Registration was applied for from the date of incorporation of the society. The application was, however, rejected by the Director of Income Tax (Exemption), Delhi vide order passed on 22nd August, 2006 under Section 12AA(1) (b) of the Act. The registration was rejected not only for the past assessment years but also for the assessment year 2006-07 which is the year in question before us.

(2.) THE assessee appealed to the Income Tax Appellate Tribunal ('Tribunal' for short) against the order refusing registration and the Tribunal vide its order dated 25th May, 2007 set aside the order of the refusal of registration and directed the DIT(E) to re-examine the assessee's claim. The DIT(E) again passed an order on 24th September, 2008 rejecting the claim for registration.

(3.) THE question, however, arose as to how the taxable income of the assessee should be computed. The assessee had declared gross receipts of Rs.12,44,11,646/- on account of donations, profit on sale of land and bank interest. Against the gross receipts, the application of funds for charitable purposes was claimed on account of expenditure incurred towards the purposes of the trust.