St. Joseph's Academy, Hyderabad V. DIT (Exemptions), Hyderabad

ITA 1113/HYD/2013

• Counselvise Citation: 111322514 RSA 2013
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 31-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P SOMASEKHAR REDDY
• Assessee Lawyers: S RAMA RAO
• Keywords: Charitable institution
• Section: 12A; 12AA; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.1113/HYD/13 ST. JOSEPH ACADEMY, HYDERABAD (PAN - AAFTS 3915 B) V/S. DIRECTOR OF INCOME - TAX (EXEMPTION), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : S HRI S.RAMA RAO RESPONDENT BY : SHRI P.SOMA SEKHAR REDDY, DR DATE OF HEARING 21 .0 8 .2014 DATE OF PRONOUNCEMENT 27.08.2014 O R D E R PER P.M.JAGTAP, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION) HYDERABAD DATED 19.3.2013, WHEREBY HE REJECTED THE APPLICA T ION FIL E D BY THE ASSESSEE FOR REGI S TRATION UNDER S.12AA OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE IN THE PRESENT CA S E IS A SOCIETY WHICH FIL E D APPLICATION FOR REGISTRATION UNDER S.12AA OF THE ACT TO THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION) ON 20.9.2012 IN THE PRESCRIBED FORM , VIZ. FORM NO.10A. ON PERUSAL OF THE DETAIL S FURNISHED BY THE ASSESSEE IN SUPPO R T OF THE SAID A PPLICA T ION, THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION) FOUND THAT ONE OF THE MAIN AIMS AND OBJECTS O F THE ASSESSEE SO C I E TY WAS AS UNDER - 1. TO ORGANIZE AN D TO ESTABLISH SCHOOLS, COLL E GE TRAINING INSTITUTIONS, HOSPI T ALS, ORPH A NAGES, HOSTELS AND BOARDING HOUSE FOR THE PROMOTION OF ELEMENTARY EDUCATION, HIGHER EDUCATION, TECHNICAL, VOCATIONAL, PROFESSIONAL EDUCATION FOR TH E BENEFIT OF CHRISTIAN MINORITY COMMUNITY IN PARTI C ULA R AND OTHERS IN GEN E RAL. I TA NO. 1113 /H YD/201 3 ST. JOSEPH ACADEMY, HYDERABAD 2 AC C ORDING TO THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION), GOING BY THE SP EC IFIC EMPHASIS LAID ON A PARTICULAR COMMUNITY IN THE LAST PART OF THE AFORESAID OBJECT CL A USE, THE ASSESSEE SOCIETY WAS ES T ABLISHED MAINLY FOR THE BENEFIT OF THAT PARTI C U L AR COMMUNITY AND THE SAME THER E FOR E , COULD NOT BE CONSIDERED AS A PUBLIC CHARITABLE INSTITUTION, AS HELD BY THE H ONBLE SUPREME COU R T IN THE CA S E OF KAMALA TOWN TRUST ( 217 ITR 699), HE ALSO NOTED FROM THE RELEVANT RULES AND REGUL A TION S O F THE ASSESSEE SOCIETY THAT THE P RINCIPAL OF TH E SCHOOL RUN BY TH E ASSESSEE SOCIETY WAS TO BE APPOINT E D ONLY FROM CHRISTIAN COMMUNITY. HE HELD THAT SUCH SPE C I F I C STIPUL A TION MADE IN THE RELEVANT RULE S AND REGUL A TIONS FOR APPOINTING THE P RINCIPAL ONLY FROM A PARTICULAR COMMUNITY AGAIN WAS SUFFICIENT TO SHOW THAT THE ASSESSEE SOCI E TY WAS ESTABLISHED FOR THE BENEFIT OF A PAR T ICUL A R COMMUNITY AND IT, THER E F O RE, COULD NO T B E CON S I D ERED AS A PUBLIC CHARITABLE INSTITUTION ELIGIBLE FOR REGISTRATION UNDER S . 1 2AA OF THE A CT. ACCOR D I N GLY, THE APPLICATION FILED BY THE ASSESSEE FOR SUCH R E GISTRATION WAS REJ E CTED BY THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION) . 3. AGG R IEVED BY THE ORD ER OF T H E LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION), ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. AS NOTED AT THE OUTSET, THERE IS A DELAY OF 72 DAYS ON THE P A RT OF THE ASSESSEE IN FILING THIS APPEAL BEFORE THE TRIBUNAL. IN TH I S REGARD, A N APPLICATION HAS BEEN FIL E D BY THE ASSESSEE ALON G WI T H AN AFFIDAVIT OF ITS P RESIDENT SEEKING CONDON AT ION OF THE SAID DELAY . K EEPING IN VI E W THE R E ASONS STATED THEREIN, WE ARE SATISFIED THAT THE DELAY OF 72 DAYS ON THE PART OF THE ASSESSEE IN FILING THIS A PPEAL IS FOR SUF F ICIENT CAUSE. EVEN THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS NO T RAISED ANY OBJECTION IN THIS REGARD. THE SAID I TA NO. 1113 /H YD/201 3 ST. JOSEPH ACADEMY, HYDERABAD 3 DELAY IS, THEREFORE, CONDONED AND THE APPEAL O F THE ASSESSEE IS BEING DISPOSED OF ON MERITS. 5. ON MERI T S, THE LEARNED COU N SEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE SOCIETY WAS ESTABLISHED NOT ONLY FOR THE BENEFIT OF THE CHRISTIAN MINORITY COMMUNITY, BUT THE SAME WAS ALSO ESTABLI S H E D FOR THE BENEFIT OF OTHERS AS WE LL. HE INVITED OUR PARTICULAR ATTENTION TO THE REL E VANT OBJECT CLAUSE O F TH E ASSESSEE SOCIETY AND SUBMITTED THAT THE BENEFITS GIVEN PARTICULARLY TO CHRISTIAN MINORITY COMMUNIT Y , AS IN D I C ATED IN TH E SAID OBJECTS CLAUSE , WAS ONLY TO SUGGEST PREFERENTIAL TREATMENT TO BE GIVEN TO THE SAID COMMUNITY AND IT W A S NOT A CA S E THAT THE ASSESSEE SOCIETY WAS ESTABLISHED EXCLUSIVELY FOR THE BENEFIT OF CHRISTIAN MINORITY COMMUNITY ONLY. AS REGARDS THE RELIANCE PLACE D BY THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION) ON THE DECISION OF THE HONBLE SUPREME COURT IN THE CA SE OF CIT V/S. K AMALA TOWN TRUST (SUPRA), HE CONTENDED THAT THE ASSESSEE TRUST IN THAT C A S E WAS ESTABLI S H E D P AR T ICULAR L Y FOR THE BENEFIT OF THE WORKM E N OF THE COMPANY, AND SIN C E TH E B ENEFICIA R IES OF THE TRUST WERE A WELL DEFINED SMALLER CLASS OF EMPLOYEES OR WORKMEN OF THE COMPANY, THE H ONBL E SUPREME COURT HELD THAT THE ASSESSEE IN TH A T CASE FAIL E D TO MEET THE REQUIREMENTS OF A GENERAL PUBLIC CHARITABLE TRUST. HE SU B MI T TED THAT THE ASSESSEE IN THE PR E SEN T CA S E, ON THE O T H E R HAND, IS ESTABLI S H E D FOR THE B ENEFIT OF CHRISTIAN MINORITY COMMUNITY, WHICH REPR E SENTS THE SECTION OF PUBLIC AND IT, THEREFORE, SERVED AN OBJECT OF GENERAL PUB L IC UTILITY FOR CHARITABLE PURPOSES, AS HELD BY THE HON'BLE SUPREME COURT IN TH E CA S E OF AHMEDABAD RANA CA S T E ASSOCIATION V/S. DIRECTOR OF INCOME - TAX(EXEMPTION) ( 82 ITR 704 ) AND HON BLE ALLAHAB A D HIGH C OU R T IN TH E CA S E OF CIT V/S SURJI DEVI KUNJI LAL JAIPURIA CHARITABLE TRUST (186 ITR 728). I TA NO. 1113 /H YD/201 3 ST. JOSEPH ACADEMY, HYDERABAD 4 6. THE LEARNED COUNSEL FURTHER CONTEND E D THAT EVEN IF THE ASSESSEE SOCIETY IS HELD TO BE ESTABLISHED FOR THE BENEFIT OF ANY P A RTICUL A R RELIGIOUS COMMUNITY, AS ENVISAGED UNDER S.13(1 )( B)OF TH E ACT , AND THERE IS VIOLATION OF THE SAID PROVISION, IT IS NOT RELEVANT FOR THE PURPOSE O F GRANTING REGISTRATION UNDER S. 1 2AA , AS THE PROVI SI ON S OF S.13(1), GOING BY TH E SPECIFIC LANGUAGE USED THEREIN, ARE APPLICABLE ONLY FOR THE SPECIFIC PURPO S E OF MAKING THE ASSESSMENT. IN SUPPORT OF THIS CONTENTION, HE RELIED ON THE DECISION OF THE L UCKNOW B ENCH OF TH E TRIBUNAL IN TH E CA S E OF MALIK HASMULLAH ISLAMIC EDUCATIONAL AND WELFARE SOCIETY V/S. CIT (138 ITD 519) . 7. THE LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HAND, STRONGLY RELIED ON THE I M PUGN E D ORDER OF THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION) IN SUPPORT OF THE RE VENUES CA S E. HE SUBMI T TE D THAT THE ASSESSEE SOCIETY, AS P E R THE RELE V ANT OBJECTS CLAUSE, WAS ESTABLI S H E D FOR TH E BENEFIT OF CHRIS T IAN MINORITY COMMUNITY IN PAR T ICUL A R, AND AS HELD BY THE HO N BL E SUPREME COU R T IN TH E CA S E OF CIT V/S. K AMALA TOWN TRUST (SUPRA) RELIE D UPON BY THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION), IT COULD NO T B E CON S I D ERED AS A PUBLIC CHA R ITABLE I N STITUTION. HE CON T E N D E D THAT TH E RE WAS ALSO A CL E AR VIOLATION OF TH E P R OV I SION S OF S .13(1)(B) AND SUCH VIOLATION WAS VERY MUCH R E LEVANT FOR R E FUSIN G GRANT OF R E GISTRATION UN D ER S .12 AA OF THE A CT IN AS MUCH AS IF THE INCOM E O F THE ASSESSEE SO C I E TY ITSELF WAS NO T ENTITLED FOR THE BENEFIT OF S .11 OR 13, THERE WAS NO PURPOSE OF GRANTING REGISTRATION UN D ER S .12 AA OF THE A CT. HE CONTENDED THAT THE APPLICATION O F TH E ASSESSEE FOR R E GI S TRATION UNDER S.12AA , THUS, WAS RIGHTLY REJECTED BY THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION) AND URGED THAT THE IMPUGN E D ORDER OF THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION) MAY BE UPHELD. I TA NO. 1113 /H YD/201 3 ST. JOSEPH ACADEMY, HYDERABAD 5 8 . WE HAVE CONSI DERED THE RIVAL SUBMISSIONS AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS OBSERVED THAT ANY TRUST OR INSTITUTION SEEKING TO AVAIL THE BENEFIT OF THE PROVISIONS OF SECTIONS 11 & 12 IS REQUIRED TO APPLY FOR REGISTRATION UNDER SECTION 12A. THE PROCE DURE FOR REGISTRATION IS PRESCRIBED IN SECTION 12AA AND AS PER THE PROVISIONS OF SUB - SECTION (1) OF THAT SECTION, THE CIT [D.I. T (EXEMPTION) IN THE PRESENT CASE] IS EMPOWERED TO SATISFY HIMSELF ABOUT THE OBJECT OF THE TRUST AND ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST OR INSTITUTION BEFORE GRANTING THE REGISTRATION UNDER SECTION 12A. ONCE THE CIT HAS NOT DOUBTED THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE NOR DOUBTED ITS CHARITABLE OBJECT, HE CANNOT REFUSE TO GRANT REGISTRATION UNDER SECTIO N 12A. IN THE PRESENT CASE, THE REGISTRATION, HOWEVER, WAS REFUSED BY THE D.I. T (EXEMPTION) ON THE GROUND THAT AS PER ONE OF THE OBJECTS CLAUSE NOTED ABOVE, THE ASSESSEE SOCIETY WAS ESTABLISHED FOR THE BENEFIT OF PEOPLE BELONGING TO CHRISTIAN MINORITY COM MUNITY WHICH WAS CLEARLY IN VIOLATION OF SECTION 13(1)(B). HOWEVER, AS HELD BY HON'BLE SUPREME COURT IN THE CASE OF AHMEDABAD RANA CASTE ASSOCIATION (SUPRA), AN OBJECT BENEFICIAL TO THE SECTION OF THE PUBLIC IS AN OBJECT OF GENERAL PUBLIC UTILITY AND TO SERVE A CHARITABLE PURPOSE, IT IS NOT NECESSARY THAT THE OBJECT SHOULD BE TO BENEFIT THE WHOLE OF MANKIND OR ALL PERSONS IN A PARTIC ULAR COUNTRY OR STATE. EXPLAINING FURTHER, IT WAS OBSERVED BY THE HON'BLE APEX COURT THAT IT IS SUFFICIENT IF THE INTENTION IS TO BENEFIT A SECTION OF THE PUBLIC AS DISTINGUISHED FROM A SPECIFIED INDIVIDUAL. RELYING ON THIS DECISION OF HON'BLE SUPREME CO URT IN THE CASE OF AHMEDABAD RANA CASTE ASSOCIATION (SUPRA), HON'BLE ALLAHABAD HIGH COURT IN THE CASE OF SURJI DEVI KUNJI LAL JAIPURIA CHARITABLE TRUST (SUPRA) HAS HELD THAT TRUST CREATED FOR GIVING MEDICAL AID, SOCIAL WELFARE AND UPLIFTMENT OF POOR MEMBER S OF A PARTICULAR COMMUNITY, VIZ. VAISH COMMUNITY , IS, THEREFORE, FOR CHARITABLE PURPOSES. TO THE SIMILAR EFFECT IS ANOTHER DECISION OF I TA NO. 1113 /H YD/201 3 ST. JOSEPH ACADEMY, HYDERABAD 6 HON'BLE ALLAHABAD HIGH COURT IN THE CASE OF CIT V. PT. RAM SHANKAR MISRA TRUST ( 222 ITR 252 ) WHEREIN IT WAS HELD THAT E XPENDITURE INCURRED BY A TRUST FOR THE BENEFIT OF ONE COMMUNITY IS AN EXPENDITURE INCURRED ON A PUBLIC CHARITABLE OBJECT. THE PROPOSITION PROPOUNDED BY HON'BLE SUPREME COURT AS WELL AS BY HON'BLE ALLAHABAD HIGH COURT IN THE AFORESAID JUDGMENTS CLEARLY SHOW S THAT THE OBJECTS OF THE ASSESSEE SOCIETY , NOTWITHSTANDING THE RELEVANT CLAUSE INDICATING THE OBJECT OF THE ASSESSEE SOCIETY TO WORK FOR THE BENEFIT OF CHRISTIAN MINORITY COMMUNITY IN PARTICULAR, WERE OF CHARITABLE NATURE AND SINCE THE POWERS OF THE CIT/ D.I. T (EXEMPTION) CONFERRED UNDER SECTION 12AA WERE CONFINED TO SATISFY HIMSELF ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST AS WELL AS NATURE OF ITS OBJECT BEING CHARITABLE, WE ARE OF THE VIEW THAT HE WAS NOT JUSTIFIED IN REFUSING TO GRANT REGISTRA TION TO THE ASSESSEE TRUST UNDER SECTION 12A MERELY ON THE GROUND THAT THE SAID OBJECTS WERE VIOLATIVE OF THE PROVISIONS OF SECTION 13(1)(B). 9. AS REGARDS THE DECISION OF THE HON'BLE SUPREME COURT IN THE CA S E OF K AMALA TO W N TRUST (SUPRA) RELI E D UPON BY THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION), IT IS OBSERVED THAT THE FACTS INVOLVED IN TH E SAID CASE WERE ALTOGETHER DIFFERENT FROM THE FACTS OF TH E PR E SEN T CASE IN AS MUCH AS THE ASSESSEE TRUST IN TH A T CASE WAS ESTABLISHED PARTICULARLY FOR THE B ENEFIT OF THE WORKMEN OF THE COMPANY AND SIN C E THE BENEFICIARIES OF THE T R UST WERE A WELL DEFINED SMALLER CL A SS OF EMPLOYE E S OR WORKMEN OF THE COMPANY, THE HON'BLE SUPREME COURT HELD THAT THE ASSESSEE TRUST COULD NO T B E CON S I D ERED AS A PUBLIC CHARITABLE T R UST. THE DECISION OF THE HON'BLE SUPREME COURT IN THE CA S E OF KAMALA TOWN TRUST (SUPRA), THEREFORE, IS DISTINGUISHABLE ON FACT S AND THE RELIANCE OF THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION) THEREON TO DRAW AN ADVERSE INFERENCE AGAINST THE ASSESSEE I N THE PRESENT CASE IS CLEARLY MISPLACED. I TA NO. 1113 /H YD/201 3 ST. JOSEPH ACADEMY, HYDERABAD 7 10. IT IS PERTINENT TO NOTE THAT THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF AHMEDABAD RANA CASTE ASSOCIATION (SUPRA), AS FOLLOWED SUBSEQUENTLY BY HON'BLE ALLAHABAD HIGH COURT IN THE CASE OF SDKI JAIP URIA TRUST (NO. 1) (SUPRA) AND IN THE CASE OF CIT V. RAM SHANKAR MISRA TRUST (SUPRA) TO HOLD THAT THE EXPENDITURE INCURRED BY A TRUST FOR THE BENEFIT OF ONE COMMUNITY IS AN EXPENDITURE INCURRED ON A PUBLIC CHARITABLE OBJECT, STILL HOLDS THE FIELD NOTWITHST ANDING THE PROVISIONS CONTAINED IN SECTION 13(1)(B) S INCE THE DEFINITION OF THE TERM 'CHARITABLE PURPOSE' GIVEN IN SECTION 2(15) CONTINUES TO REMAIN THE SAME. THE PROVISIONS OF SECTION 13(1) ARE THUS NOT DIRECTLY RELEVANT IN THIS REGARD. ON THE OTHER HAN D, THE SAID SECTION BEGINS WITH THE WORDS 'NOTHING CONTAINED IN SECTION 11 OR SECTION 12 SHALL OPERATE SO AS TO EXCLUDE FROM THE TOTAL INCOME OF THE PREVIOUS YEAR OF THE PERSON... ' WHICH CLEARLY ENVISAGES OPERATION OF SECTION 11 OR SECTION 12 BEFORE THE PROVISIONS OF SECTION 13 CAN BE APPLIED OR INVOKED IN A GIVEN CASE. IT ALSO SHOWS THAT THE SAID PROVISIONS CAN BE APPLIED OR INVOKED ONLY AT THE TIME OF COMPUTATION OF TOTAL INCOME OF THE PREVIOUS YEAR OF THE PERSON WHO IS CLAIMING EXEMPTION UNDER SECTION 11 OR SECTION 12. BOTH THESE SITUATIONS CONTEMPLATED IN SECTION 13 CAN ARISE ONLY AND ONLY IF REGISTRATION UNDER SECTION 12A IS GRANTED TO THE SAID PERSON. IF THE SAME IS NOT GRANTED AND THE PERSON IS REFUSED THE REGISTRATION UNDER SECTION 12A, HE WOULD NO T BE ENTITLED TO CLAIM ANY BENEFIT AVAILABLE UNDER SECTION 11 OR 12 AND THERE WILL BE NO OCCASION TO THE ASSESSING OFFICER TO INVOKE OR APPLY SECTION 13 IN HIS CASE. THIS POSITION WOULD NOT ONLY BE CONTRARY TO THE SCHEME OF THE ACT AS LAID DOWN IN SECTIONS 11, 12, 12A, 12AA AND 13 BUT THE SAME MAY ALSO CAUSE PREJUDICE/HARDSHIP TO THE PERSONS IN CERTAIN CASES. FOR INSTANCE, THE RELEVANT OBJECTS CLAUSE OF THE ASSESSEE SOCIETY IN THE PRESENT CASE , AS NOTED ABOVE, EMPHASISE S THE WORKING OF THE ASSESSEE SOCIETY FOR THE BENEFIT OF CHRISTIAN MINORITY COMMUNITY IN PARTICULAR. NEVERTHELESS THE SAID I TA NO. 1113 /H YD/201 3 ST. JOSEPH ACADEMY, HYDERABAD 8 OBJECT ALSO PERMITS THE ASSESSEE SOCIETY TO WORK FOR THE BENEFIT OF OTHERS IN GENERAL. IN THIS SITUATION, IF THE REGISTRATION APPLIED FOR UNDER S.12AA IS NOT GRANTED FO R VIOLATION OF PRINCIPLES OF S.13(1)( B ), AND IF IT IS ULTIMATELY FOUND THAT THE ASSESSEE TRUST HAS ACTUALLY ACCOMPLISHED THE OBJECTS ONLY FOR THE BENEFIT OF OTHERS IN GENERAL, WITHOUT THERE BEING ANY ACTIVITY UNDERTAKEN FOR THE BENEFIT OF CHRISTIAN MINO RITY COMMUNITY IN PARTICULAR, IT WOULD BE DEPRIVED OF ANY BENEFITS, WHICH OTHERWISE A RE AVAILABLE TO IT UNDER S.11 OR S.12. THIS CERTAINLY IS NOT THE LEGISLATIVE INTENTION AS REFLECTED IN THE SCHEME LAID DOWN IN SECTIONS 11, 12, 12A, 12AA AND 13. ON THE CONTRARY, THE PHRASEOLOGY OF SECTION 13, AS ALREADY DISCUSSED, MAKES IT EXPLICITLY CLEAR THAT THE SAID PROVISIONS BECOME OPERATIVE OR RELEVANT ONLY AT THE STAGE OF ASSESSMENT WHEN THE ASSESSING OFFICER IS REQUIRED TO EXAMINE THE CLAIM OF THE ASSESSEE FOR B ENEFITS UNDER SECTION 11 OR SECTION 12 WHILE COMPUTING THE TOTAL INCOME OF THE ASSESSEE OF THE RELEVANT PREVIOUS YEAR. THE APPLICATION OF SECTION 13 THUS FALLS WITHIN THE EXCLUSIVE DOMAIN OF THE AO AND THE PROVISIONS CONTAINED THEREIN CAN BE INVOKED BY HIM WHILE FRAMING THE ASSESSMENT AND NOT BY THE CIT WHILE CONSIDERING THE APPLICATION FOR REGISTRATION UNDER SECTION 12AA. THE DECISION OF THE DELHI BENCH OF THE TRIBUNAL IN THE CASE OF ARYAN EDUCATION SOCIETY V/S. CIT(93 ITD 546) ALSO SUPPORTS THIS VIEW, WHEREIN I T WAS HELD THAT SO LONG AS THE PROVISIONS OF SECTIONS 11, 12 AND 12A ARE COMPLIED WITH, THE EXEMPTION CANNOT BE DENIED MERELY BECAUSE THERE IS ANY VIOLATION OF THE PROVISIONS OF SECTION 13. 1 1 . KEEPING IN VIEW THE REASONS GIVEN ABOVE , WE ARE OF THE VIEW THAT THE ACTION OF THE LEARNED D.I. T ( EXEMPTION) IN REFUSING TO GRANT REGISTRATION TO THE ASSESSEE TRUST ON THE GROUND OF VIOLATION OF THE PROVISIONS OF SECTION 13(1)(B) WAS NOT JUSTIFIED ESPECIALLY WHEN HE HAD NOT DOUBTED EITHER THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE TRUST OR THE N ATURE OF ITS OBJECT BEING CHARITABLE. IN THAT I TA NO. 1113 /H YD/201 3 ST. JOSEPH ACADEMY, HYDERABAD 9 VIEW OF THE MATTER, WE SET ASIDE HIS IMPUGNED ORDER AND DIRECT THAT REGISTRATION APPLIED FOR BY THE ASSESSEE TRUST U NDER SECTION 12A A BE GRANTED TO IT. 1 2 . IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 27 TH AUG U S T, 2014. SD/ - SD/ - ( SAKTIJIT DEY ) ( P.M.JAGTAP ) JUDICIAL MEMBER ACCOUNTANT MEMBER DT/ - 28 TH AUGUST, 2014 COPY FORWARDED TO: 1. ST. JOSEPH ACADEMY, C/O. SHRI S.RAMA RAO, FLAT NO.102, SHIRYA'S ELEGANCE, NO.3 - 6 - 643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 2 . DIRECTOR OF INCOME - TAX(EXEMPTION) HYDERABAD 3. ASSTT. DIRECTOR OF INCOME - TAX(EXEMPTION) HYDERABAD 4 . DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S