JIS Transport & Traffic Training Institute & Management Society , Kolkata V. CIT(E), Kolkata, Kolkata

ITA 2224/KOL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6320 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 23-10-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR P K SRIHARI
• Assessee Lawyers: S L KOCHAR
• Keywords: Charitable institution; Maximum Marginal Rate; Set aside
• Section: 12A; 12AA; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C, BENC H KOLKATA BEFORE SHRI A.T.VARKEY, JM &DR. A.L.SAINI, AM ./ITA NO.2224/KOL/2017 ( / ASSESSMENT YEAR: ) JIS TRANPORT & TRAFFIC TRAINING INSTITUTE & MANAGEMENT SOCIETY C/O S.L. KOCHER, ADVOCATE 5, ASHUTOSH CHOWDHURY AVENUE, KOLKATA-700019 VS. CIT(EXEMPTION), KOLKATA ./ ./PAN/GIR NO.: AABAJ 7306 C (ASSESSEE) .. (REVENUE) ASSESSEE BY : SHRI S. L. KOCHAR, ADVOCATE & SHRI A NIL KOCHAR, ADVOCATE RESPONDENT BY : DR. P.K. SRIHARI, CIT DR / DATE OF HEARING : 12/06/2019 /DATE OF PRONOUNCEMENT : 02/08/2019 / O R D E R PER DR. A. L. SAINI: THE CAPTIONED APPEAL FILED BY THE ASSESSEE, IS DIR ECTED AGAINST AN ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (E XEMPTION)- KOLKATA DATED 24.08.2017. 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE AS FOLLOWS: 1. FOR THAT THE LD. COMMISSIONER OF INCOME TAX (EXEMPT ION), KOLKATA ERRED IN HOLDING THAT THE APPELLANT WAS NOT ELIGIBLE FOR REG ISTRATION U/S 12AA OF THE ACT. 2. FOR THAT THE APPELLANT HAS SUBMITTED APPLICATION FO R REGISTRATION ALONG WITH NECESSARY PAPERS & DOCUMENTS IN SUPPORT OF THE EXIS TENCE OF THE TRUST AND THAT THE LD. CIT(EXEMPTION) OUGHT TO HAVE REFERRED TO THE SAME AND GRANTED REGISTRATION AS REQUESTED FOR U/S 12AA OF THE ACT. JIS TRANSPORT & TRAFFIC TRAINING INSTITUTE & MANAGE MENT SOCIETY ITA NO.2224/KOL/2017 ASSESSMENT YEAR: P PP PA AA AG GG GE EE E | || | 2 22 2 3. FOR THAT THERE HAVE BEEN SOME OBSERVATIONS MADE BY THE LD. CIT(E) RELATING TO NON-APPEARANCE BY THE A/R OF THE APPELLANT WHICH IT IS SUBMITTED WAS NEITHER INTENTIONAL NOR WILLFUL AND THAT THE LD. CIT(E) OU GHT TO HAVE GRANTED FURTHER OPPORTUNITY TO THE APPELLANT FOR APPEARANCE. 4. FOR THAT THE APPELLANT CRAVES LEAVE TO SUBMIT ALL R ELEVANT PAPERS & DOCUMENTS AND PRAYS THAT DIRECTIONS MAY KINDLY BE ISSUED TO T HE LD. CIT(E) TO GRANT REGISTRATION U/S 12AA. 5. FOR THAT FURTHER GROUNDS OF APPEAL MAY KINDLY BE AL LOWED TO BE TAKEN AT THE TIME OF HEARING OF APPEAL. 3. BRIEF FACTS QUA THE ISSUE ARE THAT M/S JIS TRANS PORT & TRAFFIC TRAINING INSTITUTE & MANAGEMENT SOCIETY WAS REGISTERED AS A SOCIETY UN DER WEST BENGAL SOCIETIES REGISTRATION ACT, 1961 ON 10.12.2013. THE AFORESAID SOCIETY FILED AN APPLICATION IN FORM 10A FOR REGISTRATION U/S 12A OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 28.02.2017. DURING THE PROCEEDINGS U/S 12AA O F THE ACT, THE ASSESSEE SUBMITTED WRITTEN SUBMISSIONS AND DOCUMENTS FOR REG ISTRATION OF THE TRUST. HOWEVER, THE LD. CIT(E) NOTED THERE WERE TWO ISSUES ON WHICH EXPLANATIONS OF THE ASSESSEE IS NEED VIZ.: A) FIRST NON-PAYMENT OF TAX BY THE SOCIETY IN EARLIER YEARS AND B) APPLICABILITY OF THE LIMB OF SECTION 2(15) T O THE TRAFFIC TRAINING AND MANAGEMENT EDUCTION. THE LD. CIT(E) NOTED THAT IN F ORM NO. 10A DEED OF INCEPTION, COPY OF AUDIT REPORT AND ACCOUNTS REVEAL ED THAT IN ASSESSMENT YEARS 2013-14, 2014-15 AND 2015-16, THE ASSESSEE HAD SHOW N INCOME OF RS. 4,84,445/-, RS. 4,50,570/- AND RS. 3,75,843/- RESPECTIVELY. TH E LD. CIT(E) ALSO NOTED THAT THE ASSESSEE IN ITS RETURN OF INCOME HAD SHOWN NIL INCO ME AND DID NOT PAY TAX FOR THE ASSESSMENT YEARS 2013-14, 2014-15 AND 2015-16 RESPE CTIVELY ON THE INCOME WHICH HE HAS NOTICED FROM THE BOOKS OF ACCOUNTS OF THE AS SESSEE. THEREFORE THE LD. CIT(E) NOTED THAT THE ASSESSEE HAS VIOLATED THE PRO VISIONS OF ACT AND EVADED PAYMENT OF TAX THEREFORE, HE WAS OF THE VIEW THAT T HE ASSESSEE TRUST CAME INTO AMBIT OF NOT GENUINE ACTIVITY. AS THE ASSESSEE TR UST DID NOT PAY THE DUE TAXES, THEREFORE THE LD. CIT(E) NOTED THAT NON-PAYMENT OF TAX IS IN VIOLATION OF THE PROVISIONS OF THE ACT AND IS NOT GENUINE ACTIVITY IN ITSELF IS A BAR TO GRANT OF REGISTRATION U/S 12AA. JIS TRANSPORT & TRAFFIC TRAINING INSTITUTE & MANAGE MENT SOCIETY ITA NO.2224/KOL/2017 ASSESSMENT YEAR: P PP PA AA AG GG GE EE E | || | 3 33 3 4. THE LD. CIT(E) ALSO NOTED THAT THE ASSESSEE HAS FAILED TO SATISFY THE LIMB U/S 2(15) OF THE ACT. THE LD. CIT(E) NOTED THAT IN ORDE R TO GET REGISTERED U/S 12AA OF THE ACT, THE SOCIETY MUST HAVE OBJECTIVE AND ACTIVI TY UNDER AT LEAST ONE LIMB OUT OF 7 LIMBS MENTIONED U/S 2(15) OF THE ACT. THEREFORE, THE LD. CIT(E) NOTED THAT SINCE THE ASSESSEE HAD ADMITTED THAT IT DID NOT BELONG TO ANY LIMB MENTIONED U/S 2(15) OF THE ACT THEREFORE THE QUESTION OF GRANTING REGISTRA TION U/S 12AA OF THE ACT DID NOT ARISE. THEREFORE, THE LD. CIT(E)) DENIED THE REGIS TRATION U/S 12AA OF THE ACT. 5.AGGRIEVED BY THE ORDER OF LD. CIT(E) THE ASSESSEE IS IN APPEAL BEFORE US. 6.THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED BEFORE US THAT THE ASSESSEE TRUST IS ENGAGED IN PROVIDING TRAFFIC TRAINING AND DRIVING TRAINING IN LIGHT, MEDIUM AND HEAVY COMMERCIAL VEHICLES IN THE STATE OF WEST BENG AL AND ADJOINING STATE OF WEST BENGAL. THE LD. COUNSEL SUBMITTED THAT THE ASS ESSEE TRUST IS ENGAGED IN PROVIDING EDUCATION RELATING TO TRAFFIC ACTIVITIES AND WORK ASSIGNED BY THE TRANSPORT OF GOVT. OF WEST BENGAL AND MINISTRY OF R OAD AND TRANSPORT AND HIGHWAY OF GOVT. OF INDIA. THE LD. COUNSEL SUBMITTE D BEFORE US THAT TRAFFIC TRAINING AND DRIVING TRAINING IN LIGHT, MEDIUM AND COMMERCIAL VEHICLES, FALL IN THE DEFINITION OF CHARITABLE PURPOSE AS MENTIONE D IN SECTION 2(15) OF THE ACT, HENCE ASSESSEE TRUST IS ELIGIBLE FOR REGISTRATION U /S 12AA OF THE ACT. THE COUNSEL ALSO STATED THAT THE INCOME DERIVED BY THE ASSESSEE TRUST HAS BEEN SPENT FOR THE PROMOTION OF THE OBJECTIVES OF THE SOCIETY TRUST AN D NON-PAYMENT OF TAXES ON THE PAST INCOME OF THE TRUST DOES NOT MAKE THE TRUST IL LEGAL. 7.ON THE OTHER HAND, THE LD. D.R. FOR THE REVENUE V EHEMENTLY RELIED ON THE STAND TAKEN BY THE LD. CIT(E) AND STATED BEFORE THE BENC H THAT SECTION 2(15) DOES NOT CONTAIN THE TRAFFIC EDUCATIONAL ACTIVITIES. SECTION 2(15) RELATES TO ONLY PROMOTION OF EDUCATION AND EDUCATION MEANS FORMAL EDUCATION ONL Y. TO PROVIDE THE TRAINING FOR TRAFFIC RULES TO COMMERCIAL VEHICLES IS NOT A FORMA L EDUCATION THEREFORE REGISTRATION U/S 12AA SHOULD NOT BE GRANTED AS THE ASSESSEE HAS FAILED TO COMPLY THE CHARITABLE OBJECTIVES WHICH IS MENTIONED IN 2(15) OF THE ACT. JIS TRANSPORT & TRAFFIC TRAINING INSTITUTE & MANAGE MENT SOCIETY ITA NO.2224/KOL/2017 ASSESSMENT YEAR: P PP PA AA AG GG GE EE E | || | 4 44 4 8. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. FIRST OF ALL, LET US EXAMINE THE OBJECTIVES OF THE SOCIETY. WE NOTE THAT THE ASSESSEE SOCIETY IS ENGAGED IN THE FOLLOWING OBJECTIVES AS P ER THE OBJECTIVE CLAUSE OF THE SOCIETY WHICH IS MENTIONED BELOW: (I) TO MANAGE AND MAINTAIN THE TRAINING INSTITUTE I N THE PREMISES OWNED BY AND BELONGING TO WBTIDC AT JESSORE ROAD, KOLKATA FOR IM PARTING DRIVING TRAINING IN LIGHT, MEDIUM AND HEAVY COMMERCIAL VEHICLES, IN TH E STATE OF WEST BENGAL AND ADJOINING STATES FOR ENSURING SAFETY OF THE ROADS A ND FACILITATE IN IMPROVING THE TRANSPORT SYSTEM IN THE STATE OF WEST BENGAL AND AD JOINING STATES IN A PROFESSIONS MANNER USING THE EXPERTISE OF SOME REPUTED EDUCATIO NAL INSTITUTIONS AND OTHER RELATED ORGANIZATIONS AS WELL AS ANY OTHER WORK ASS IGNED BY THE TRANSPORT DEPARTMENT OF GOVT. OF WEST BENGAL AND THE MINISTR Y OF ROAD TRANSPORT & HIGHWAY OF THE GOVT. OF INDIA. (II) THE INCOME AND PROPERTIES OF THE SOCIETY WHATS OEVER DERIVED OR OBTAINED SHALL BE APPLIED SOLELY TOWARDS THE PROMOTION OF THE OBJE CTS OF THE SOCIETY AND NO PORTION THEREOF SHALL BE PAID TO OR DIVIDEND AMONGS T ANY OF ITS MEMBERS BY WAY OF PROFITS. WE NOTE THAT THESE OBJECTIVES OF THE SOCIETY TRUST IS TO PROVIDE TRAINING FOR ENSURING SAFETY OF THE ROAD, TRAFFIC RULES AND FACILITATE IN IMPROVING THE TRANSPORT SYSTEM IN THE STATE OF WEST BENGAL. IT IS KIND OF IMPARTING EDUCATION WHICH HELPS THE PEOPLE TO UNDERSTAND THE TRAFFIC RULES AND REGULATIONS. I T IMPROVES THE SAFETY OF THE ROADS AND CHANCES OF ACCIDENT IS MINIMIZED. THIS EDUCATIO N IS NECESSARY FOR SAFETY OF HUMAN BEING. HENCE SUCH EDUCATION FALLS IN THE DEF INITION OF CHARITABLE PURPOSE WITHIN THE MEANING OF SECTION 2(15) OF THE ACT. WE NOTE THAT ASSESSEE TRUST DOES THE WORK AS ASSIGNED BY THE TRANSPORT DEPARTMENT OF GOVT. OF WEST BENGAL AND APPLIED ITS INCOME FOR PROVIDING EDUCATION IN THE F IELD OF ROAD SAFETY FOR IMPROVING TRANSPORT SYSTEM AND TO MINIMIZE ROAD ACC IDENTS. JIS TRANSPORT & TRAFFIC TRAINING INSTITUTE & MANAGE MENT SOCIETY ITA NO.2224/KOL/2017 ASSESSMENT YEAR: P PP PA AA AG GG GE EE E | || | 5 55 5 9. WE NOTE THAT THE SOCIETY HAS BEEN REGISTERED BY THE WEST BENGAL SOCIETIES REGISTRATION ACT, 1961. THE CERTIFICATE OF REGISTRA TION OF SOCIETIES WEST BENGAL ACT, 1961 GRANTED TO THE ASSESSEE IS GIVEN BELOW: WE NOTE THAT WHILE GRANTING REGISTRATION U/S 12AA O F THE ACT, THE LD. CIT(E) NEED NOT TO LOOK INTO THE PAST RETURN OF INCOME FILED BY THE ASSESSEE TRUST. WHAT IS NEEDED TO BE LOOKED INTO IS THE OBJECTIVES OF THE S OCIETY. EVEN IF, AFTER GETTING JIS TRANSPORT & TRAFFIC TRAINING INSTITUTE & MANAGE MENT SOCIETY ITA NO.2224/KOL/2017 ASSESSMENT YEAR: P PP PA AA AG GG GE EE E | || | 6 66 6 REGISTERED U/S 12AA, IF THE SOCIETY DOES NOT FULFIL L THE CONDITIONS AND DOES NOT WORK AS PER PROVISIONS OF SECTION 11 OR 12A OF THE ACT THEN ITS INCOME WILL BE TAXABLE AT MAXIMUM MARGINAL RATE. HOWEVER, WE NOTE THAT IT IS WELL SETTLED LAW THAT WHILE GRANTING REGISTRATION U/S 12AA OF THE AC T, ONLY THE OBJECTIVES OF THE TRUST NEEDS TO BE EXAMINED WHETHER THEY ARE FOR CHA RITABLE PURPOSE OR NOT AND FOR THAT WE RELY ON THE JUDGMENT OF THE HONBLE HIGH CO URT OF KERALA IN THE CASE OF ANJANIA MEDICAL TRUST VS. CIT IN 282 ITR 399 (KER) WHEREIN IT WAS HELD AS FOLLOWS: 10. IT IS CLEAR FROM A PLAIN READING OF SECTIONS 12 A AND 12AA OF THE ACT THAT WHAT IS INTENDED THEREBY IS ONLY A REGISTRATION SIM PLICITER OF THE ENTITY OF A TRUST. THIS HAS BEEN MADE A CONDITION PRECEDENT FOR THE CLAIMING OF BENEFITS UNDER THE OTHER PROVISIONS OF THE ACT REGARDING EXE MPTION OF INCOME, CONTRIBUTION, ETC. NO EXAMINATION OF THE MODUS OF T HE APPLICATION OF THE FUNDS OF THE TRUST OR AN EXAMINATION OF THE ETHICAL BACKG ROUND OF ITS SETTLERS IS CALLED FOR WHILE CONSIDERING AN APPLICATION FOR REGISTRATI ON. THE STAGE FOR CONSIDERATION OF THE RELEVANCE OF THE OBJECT OF THE TRUST AND THE APPLICATION OF ITS FUNDS ARISES AT THE TIME OF THE ASSESSMENT. WHE RE BENEFITS ARE CLAIMED BY ASSESSEES IN TERMS OF SECTIONS 11 AND 12 OF THE ACT , THE QUESTION AS TO THE NATURE OF SUCH CONTRIBUTION AND INCOME CAN BE LOOKE D INTO. AT THE TIME OF REGISTRATION OF THE TRUST, GOING BY THE BINDING JUD GMENTS OF THE APEX COURT , WHAT IS TO BE LOOKED INTO IS WHETHER THE TRUST IS A GENUINE ONE AND WHETHER IT IS A SHAM INSTITUTION FLOATED ONLY TO AVAIL THE BENEFI TS OF EXEMPTION UNDER THE ACT. THERE IS NO SUCH FINDING IN THE IMPUGNED ORDER. 11. ON MERITS ALSO, IT IS CONTENDED THAT THE AMOUNT ALLEGEDLY COLLECTED AS CAPITATION FEE FROM FOUR PROSPECTIVE STUDENTS WAS A CTUALLY COLLECTED AS TUITION FEE ON THE BASIS OF THE VALID AGREEMENTS ENTERED IN TO BY THE TRUST UNDERTAKING TO RETURN THE SAME IN CASE ADMISSION UNDER THE NRI QUO TA COULD NOT BE MADE AVAILABLE TO THE CONCERNED STUDENTS. THE AMOUNT SO COLLECTED REPRESENTED ONLY A PORTION OF THE TUITION FEES WHICH THE GOVERNMENT HAD PERMITTED THE RECOGNIZED MEDICAL COLLEGES TO COLLECT DURING THE R ELEVANT ACADEMIC YEAR AND THE AGREEMENT SPECIFIED THAT THE AMOUNTS COULD BE A DJUSTED TOWARDS THE TUITION FEES PAYABLE BY THE STUDENTS UNDER THE NRI QUOTA. I T IS FURTHER STATED THAT EVEN WITH REGARD TO AMOUNTS COLLECTED FROM EMPLOYEES, TH E SAME WERE VOLUNTARY DEPOSITS MADE BY EMPLOYEES AND NO ACTION HAD BEEN T AKEN BY ANY AUTHORITY AGAINST THE TRUST, SINCE THERE WAS NO COMPULSION OR ILLEGALITY IN THE MATTER. 12. IT IS CLEAR THAT TAXING STATUTES ARE LIABLE TO BE INTERPRETED STRICTLY. THE COURT CANNOT SUPPLY OR DETRACT FROM THE PROVISIONS CONTAI NED IN THE STATUTE. WHERE THE PROVISIONS OF THE ACT ARE CLEAR, COURTS HAVE NO POWER TO EXAMINE THE PURPOSE BEHIND THE ENACTMENT. THE PROJECTED FUTILIT Y AND INCONVENIENCE THAT MAY ARISE OUT OF THE APPLICATION OF A PROVISION OF LAW CANNOT, IN A TAXING STATUTE, BE A GROUND TO DENY A BENEFIT WHICH IS EVI DENT FROM A PLAIN READING OF THE STATUTE. JIS TRANSPORT & TRAFFIC TRAINING INSTITUTE & MANAGE MENT SOCIETY ITA NO.2224/KOL/2017 ASSESSMENT YEAR: P PP PA AA AG GG GE EE E | || | 7 77 7 13. GOING BY THE PROVISIONS OF SECTIONS 12A AND 12A A OF THE INCOME TAX ACT, WE HOLD THAT THE GROUNDS RAISED BY THE REGISTERING AUTHORITY AND UPHELD BY THE APPELLATE AUTHORITY FOR REJECTION OF REGISTRATION T O THE APPELLANT TRUST CANNOT BE SUSTAINED. THE AUTHORITIES COULD HAVE EXAMINED ONLY THE GENUINENESS OF THE TRUST AND ITS ACTIVITIES. THEY DID NOT HAVE MATERIA L TO HOLD THAT THE TRUST WAS EITHER NOT GENUINE OR ITS ACTIVITIES WERE NOT WHAT WAS PROFESSED IN THE DEED OF TRUST. RESULTANTLY, IN THE LIGHT OF THE ABOVE FINDINGS, TH E IMPUGNED ORDER IS SET ASIDE. THE RESPONDENT COMMISSIONER OF INCOME TAX IS DIRECT ED TO GRANT REGISTRATION AS REQUESTED BY THE APPELLANT TRUST IN TERMS OF SEC TION 12A OF THE ACT. IT IS MADE CLEAR THAT THE REVENUE IS AT LIBERTY TO PASS A PPROPRIATE ORDERS IN ACCORDANCE WITH LAW IN ASSESSMENT ON THE RETURNS TO BE FILED BY THE TRUST OR PERSONS MAKING CONTRIBUTIONS TO IT IN TERMS OF SECT IONS 10, 11 AND 12 OF THE ACT. THE APPEAL IS ORDERED ACCORDINGLY . THEREFORE WE NOTE THAT IN ORDER TO GRANT THE REGIST RATION, THE LD. CIT(E) MUST EXAMINE ONLY THE OBJECTIVES OF THE SOCIETY AND ONCE THE TRUST IS REGISTERED U/S 12AA AND DOES NOT PAY TAX OR DOES NOT APPLY THE INC OME AS PER SECTION 11 AND 12A OF THE ACT THEN TRUST IS SUPPOSED TO PAY INCOME TAX AT THE RATE OF MAXIMUM MARGINAL RATE. WITHOUT 12A REGISTRATION THE ASSESSE E TRUST CANNOT CLAIM EXEMPTION U/S 11 OF THE ACT. WE NOTE THAT THE ASSESSEE TRUST HAS APPLIED FOR REGISTRATION U/S 12A ON 28.02.2017 I.E. ASSESSMENT YEAR 2016-17 AND THEREFORE THE ASSESSEE CANNOT CLAIM EXEMPTION ON ITS INCOME DERIVED FROM CHARITAB LE ACTIVITIES FOR ASSESSMENT YEARS PRIOR TO A.Y. 2016-17. SAY, IF THE ASSESSEE T RUST HAS NOT FILED THE RETURN OF INCOME CORRECTLY PRIOR TO A.Y. 2016-17, CANNOT BECO ME A GROUND FOR NON-GRANT OF REGISTRATION U/S 12AA OF THE ACT. SIMILARLY, NOT TO PAY INCOME TAX PRIOR TO A.Y. 2016-17 CANNOT BECOME A GROUND TO REFUSE FOR REGIST RATION U/S 12AA OF THE ACT. NEEDLESS TO SAY THAT INCOME TAX ACT HAS A PROVISION TO DEAL WITH TO TAX THE INCOME OF THE ASSESSEE TRUST. HOWEVER, WE WOULD LIKE TO MA KE IT CLEAR THAT AT THE TIME OF GRANT OF REGISTRATION U/S 12AA OF THE ACT ONLY THE OBJECTIVES OF THE TRUST IS TO BE EXAMINED WHETHER THEY ARE FOR CHARITABLE PURPOSE OR NOT. 10. WE ALSO NOTE THAT THE SIMILAR ISSUE AROSE BEFOR E THE CO-ORDINATE BENCH OF DELHI C BENCH IN THE CASE OF THE INSTITUTE OF DRIVING AND TRAFFIC RESEARCH , VS. CIT IN I.T.A. NO. 4401/DEL/2009 DATED 04.02.2011 WHEREIN T HE TRIBUNAL HAS HELD AS FOLLOWS: JIS TRANSPORT & TRAFFIC TRAINING INSTITUTE & MANAGE MENT SOCIETY ITA NO.2224/KOL/2017 ASSESSMENT YEAR: P PP PA AA AG GG GE EE E | || | 8 88 8 4.4 WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS. WE FIND THAT THERE IS CONSIDERABLE COGENCY IN THE ASSESSEES SUBMISSIONS. A READING OF THE OBJECTS OF THE ASSOCIATION CLEARLY REVEAL THAT ASSESSEE IS PUR SUING CHARITABLE OBJECTS PARTICULARLY IN THE REALM OF PURSUING EDUCATIONAL A CTIVITIES. THE MAIN OBJECTS WHERE LD.CIT HAS FOUND FAULT ARE 4.7 TO 4.17, WHERE WE NOTE THAT 4.7 TO 4.9 ARE THE MAIN OBJECT AND 4.10 TO 4.17 ARE INCIDENTAL TO THE ATTAINMENT OF MAIN OBJECTS. THE PREDOMINANT OBJECTS OF THE SOCIETY IS TO SET UP AND MANAGE MOTOR DRIVING TRAINING SCHOOL TO IMPART EDUCATION RELATED TO SAFE AND BETTER DRIVING WHICH CONTRIBUTE TO SAFETY OF ROADS. FURTHER, THE ENTIRE FUNDS OF THE ASSESSEE CAN ONLY BE UTILIZED TO PURSUE THE EDUCATIONAL ACTIVITIES AND F OR NO OTHER PURPOSE. THIS HAS BEEN CLEARLY DEMONSTRATED IN CLAUSE NO. 4.17 AS ABO VE. FURTHER, AS PER CLAUSE 5, 6, & 7 OF THE MEMORANDUM OF ASSOCIATION, NO PART OF THE INCOME/FUNDS CAN BE DISTRIBUTED AMONG ITS MEMBERS AS PROVIDED IN THE EV ENT OF DISSOLUTION OF THE ASSESSEE. ANY SURPLUS SHALL VEST IN OTHER INSTITUTI ON AND / OR SOCIETY HAVING SIMILAR OBJECTS AS THAT OF SOCIETY FROM THE MEMORANDUM OF A SSOCIATION. THUS, WE FIND THAT ASSESSEE HAS BEEN CONSTITUTED FOR EDUCATIONAL PURPO SES WHICH IS CLEARLY OF CHARITABLE PURPOSES AS DEFINED IN SECTION 2(15) OF THE ACT. THE ENTIRE FUNDS OF THE ASSESSEE ARE UNDER THE LEGAL OBLIGATION HELD TO BE APPLIED SOLELY FOR THE PRIMARY OBJECTS AS SPECIFIED AND FOR NO OTHER PURPOSE. IN T HESE CIRCUMSTANCES, WE FIND THAT ASSESSEES SUBMISSIONS ARE COGENT ENOUGH AND C.I.T. S OBJECTION IN THIS REGARD ARE NOT SUSTAINABLE. ACCORDINGLY, IN THE BACKGROUND OF THE AFORESAID DISCUSSION AND PRECEDENT, WE SET ASIDE THE ORDER OF THE COMMIS SIONER OF INCOME TAX AND DIRECT THAT THE ASSESSEE BE GRANTED REGISTRATION U/ S 12AA OF THE I.T. ACT. CONSIDERING THE FACTS AND CIRCUMSTANCES AS EXPLAINE D ABOVE AND RESPECTFULLY FOLLOWING THE JUDGMENT OF THE CO-ORDINATE BENCH IN THE CASE OF INSTITUTE OF DRIVING AND TRAFFIC RESEARCH (SUPRA), WE SET ASIDE THE ORDE R OF THE LD. CIT(E) AND REMITTED THE ISSUE BACK TO HIS FILE AGAIN TO GRANT THE REGI STRATION TO THE ASSESSEE TRUST BASED ON THE APPLICATION FILED BY THE ASSESSEE ON 28.02.2 017 IN ACCORDANCE WITH LAW. 11. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 02.08.2019 SD/- ( A.T.VARKEY ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 02/08/2019 ( SB, SR.PS ) JIS TRANSPORT & TRAFFIC TRAINING INSTITUTE & MANAGE MENT SOCIETY ITA NO.2224/KOL/2017 ASSESSMENT YEAR: P PP PA AA AG GG GE EE E | || | 9 99 9 COPY OF THE ORDER FORWARDED TO: 1. JIS TRANSPORT & TRAFFIC TRAINING INSTITUTE & MAN AGEMENT SOCIETY 2. CIT(E), KOLKATA 3. C.I.T(A)- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 6. GUARD FILE. TRUE COPY BY ORDER ASSIST ANT REGISTRAR ITAT, KOLKA TA BENCHES