M/s. Society for Education & Excellence, New Delhi V. CIT(E), Chandigarh

ITA 2246/DEL/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4203 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: misc
• Appeal Filed On: 27-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12AA; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F , NEW DELHI BEFORE SHRI R.S.SYAL, VICE PRESIDENT AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER ITA NO. 2246/DEL/2016 AY: ........ SOCIETY FOR EDUCATION & EXCELLENCE C/O M/S. RRA TAXINDIA D 28, SOUTH EXTENSION, PART I NEW DELHI 110 049 PAN: AAMAS9600D VS . CIT(E) CHANDIGARH (APPELLANT) (RESPONDENT) ASSESSEE BY SH. A SHWANI TANEJA, ADV. REVENUE BY SH. S.S.RANA, CIT, D.R. DATE OF HEARING 16.08.2018 DATE OF PRONOUNCEMENT 17. 0 8.18 ORDER PER BEENA A PILLAI, JUDICIAL MEMBER THE PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST ORDER DATED 20.02.2016 PASSED BY LD. COMMISSIONER OF INCOME - TAX ( EXEMPTIONS ), CHANDIGARH ON THE FOLLOWING GROUNDS. ITA 2246/DEL/2016 A.Y.: NOT APPLICABLE SOCIETY FOR EDUCATION & EXCELLENCE, NEW DELHI 2 1. THAT HAVING REGARD TO FACTS AND CIRCUMSTANCES OF THE CASE, LD.CIT(E) HAS ERRED IN LAW AND ON FACTS IN DENYING REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 (THE ACT) AND THAT TOO BY OBSERVING THAT THERE IS NO ARRANGEMENT HAVING BEEN MADE REGARDING ESTABLISHMENT OF SCHOOL IN A BUILDING ON PERMANENT BASIS, AND THAT TOO BY RE CORDING INCORRECT FACTS AND FINDINGS AND WITHOUT CONSIDERING SUBMISSIONS AND EVIDENCES OF THE ASSESSEE AND WITHOUT GIVING ADEQUATE OPPORTUNITY OF HEARING. 2. THAT IN ANY VIEW OF THE MATTER AND IN ANY CASE, ACTION OF LD.CIT(E) IN DENYING REGISTRATION U/S 1 2AA IS BAD IN LAW AND AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THAT THE APPELLANT CRAVES LEAVE TO ADD, MODIFY, AMEND OR DELETE ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING AND ALL THE ABOVE GROUNDS ARE WITHOUT PREJUDICE TO EACH OTHER. 2 . FACTS OF THE CASE IN BRIEF : - A S S E S S E E G O T R E G I S T E R E D W I T H R E G I S T R A R O F S O C I E T I E S , G U R G A O N O N 2 5 . 8 . 2 0 1 4 . I T H A S B E E N S U B M I T T E D T H A T M A I N O B J E C T O F S O C I E T Y I S T O E S T A B L I S H , R U N A N D M A I N T A I N E D U C A T I O N A L I N S T I T U T I O N F O R I M P A R T I N G E D U C A T I O N . A S S E S S E E S O C I E T Y F I L E D A N A P P L I C A T I O N B E F O R E L D . C I T ( E ) , C H A N D I G A R H I N F O R M N O . 1 0 A O N 2 2 . 8 . 2 0 1 5 F O R R E G I S T R A T I O N O F S O C I E T Y U / S 1 2 A A O F T H E I N C O M E T A X A C T , 1 9 6 1 ( T H E A C T ) . 2 . 1 . O N R E C E I P T O F A P P L I C A T I O N D A T E D 2 8 . 0 5 . 2 0 1 5 , L D . C I T I S S U E D S H O W C A U S E N O T I C E . I N R E S P O N S E T O N O T I C E , R E P R E S E N T A T I V E O F A S S E S S E E A P P E A R E D B E F O R E L D . C I T A N D F I L E D B Y - L A W S O F S O C I E T Y . H O W E V E R , L D . C I T R E J E C T E D A P P L I C A T I O N B Y O B S E R V I N G A S U N D E R : 7. CONSIDERING THE TOTALITY OF THE MATERIAL ON RECORD IT APPEARS THAT THERE HAS BEEN ABSOLUTELY NO ACTIVITY TILL NOW IN DEFERENCE TO THE STATED PURPOSES/OBJECTS FOR WHICH THE SOCIETY HAS BEEN FORMED. THE SOCIETY IS A CLOSE FAMILY TRUST AND CANNOT BE DESCRIBED AS PUBLIC ITA 2246/DEL/2016 A.Y.: NOT APPLICABLE SOCIETY FOR EDUCATION & EXCELLENCE, NEW DELHI 3 CHARITABLE TRUST. MOREOVER NO ARRANGEMENTS HAVE BEEN MADE REGARDING THE ESTABLISHMENT OF THE SCHOOL IN A BUILDING ON PERMANENT BASIS WHICH IS THE BASIC BARE MINIMUM NECESSITIES FOR REDEEMING ANY CHARITABLE PURPOSE / NECESSARY CONDITIONS AS DEFINED IN SECTIONS 11 AND 12 F THE I T ACT, 1961. THE ACTIVITIES SO FAR DO NOT STAND CORROBORATED VI S - A - VIS THE STATED OBJECTS. AS SUCH I AM NOT INCLINED TO GRANT THE REGISTRATION TO THE APPLICANT SOCIETY. THE APPLICATION IS HEREBY REJECTED. 3 . A G G R I E V E D B Y T H E O R D E R O F L D . C I T , A S S E S S E E I S I N A P P E A L B E F O R E U S N O W . 4 . L D . A R S U B M I T T E D T H A T A S S E S S E E H A S M A D E A N A G R E E M E N T W I T H M A L I B U L I T T L E S T A R P R I M A R Y S C H O O L P L T D . W H E R E I N I T I S S T A T E D T H A T M A L I B U L I T T L E S T A R H A S A G R E E D T O L E T O U T T H E P R E M I S E S T O A S S E S S E E O N R E N T A N D A S S E S S E E H A S A G R E E D T H A T . A S S E S S E E R E F E R R E D T O A L E T T E R R E C E I V E D F R O M C H A M A N P U R A C O O P E R A T I V E S O C I E T Y L / C L T D . , W H E R E I N I T H A S B E E N S U B M I T T E D T H A T T H E Y H A V E T H E M S E L V E S S H O W N D E S I R E T O P R O V I D E 6 R O O M S T O A S S E S S E E F O R A T T A I N I N G T H E C H A R I T A B L E O B J E C T S . 4 . 1 . A C O P Y O F L E T T E R F R O M S A I N I D H A R A M S H A L A H A S B E E N R E L I E D U P O N B Y L D . A R , W H E R E I N I T H A S B E E N S T A T E D T H A T S A I N I D H A R A M S H A L A O F F E R E D S P A C E O F 1 0 R O O M S I N R E S P E C T O F E D U C A T I O N A L A N D D E V E L O P M E N T A C T I V I T I E S F O R G I R L S A N D T H E Y W I L L N O T C H A R G E A N Y E X P E N D I T U R E F O R T H E S E C H A R I T A B L E O B J E C T S . F U R T H E R , I T I S A L S O S U B M I T T E D T H A T A S S E S S E E I S A N E W E N T I T Y A N D I S S T E P P I N G F O R W A R D T O W A R D S E D U C A T I O N A L A C T I V I T I E S . T H E A B O V E ITA 2246/DEL/2016 A.Y.: NOT APPLICABLE SOCIETY FOR EDUCATION & EXCELLENCE, NEW DELHI 4 E X P L A I N E D E V I D E N C E S I T S E L F S H O W S T H A T A S S E S S E E S O C I E T Y H A S M A D E E N O U G H E F F O R T S F O R E S T A B L I S H I N G P E R M A N E N T A R R A N G E M E N T S T O I M P A R T E D U C A T I O N . 5 . O N T H E C O N T R A R Y L D . D R R E L Y I N G U P O N O R D E R O F L D . C I T S U B M I T T E D T H A T T H E R E I S N O L E G A L S A N C T I T Y T O A G R E E M E N T S , A S T H E Y A R E N O T R E G I S T E R E D . F U R T H E R H E S U B M I T T E D T H A T N O P E R M A N E N T A R R A N G E M E N T F O R R U N N I N G P R O P O S E D S C H O O L H A S B E E N M A D E . 6 . WE HAVE PERUSED THE SUBMISSIONS ADVANCED BY BOTH THE SIDES IN THE LIGHT OF THE RECORDS PLACED BEFORE US. 7 . IN OUR CONSIDERED VIEW AT THE TIME OF PROCESSING APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT, LD. CIT IS NOT EXPECTED TO GO IN TO DETAILS , AND POWERS ARE LIMITED O N L Y TO EXAMINE AS TO WHETHER OR NOT OBJECTS OF A S S E S S E E ARE CHARITABLE IN NATURE AND EXAMINATION R E G A R D I N G GENUINENESS OF THE ACTIVITIES. IN THE EVENT LD. CIT DO NOT HAVE SUFFICIENT MATERIAL TO DOUBT GENUINENESS OF ACTIVITIES, REGISTRATION UNDER SECTION 12AA OF THE ACT, CANNOT BE REFUSED TO ASSESSEE. IT IS ALSO OBSERVED THAT LD.CIT I N P A R A G R A P H 2 O B S E R V E D T H A T M A I N O B J E C T O F S O C I E T Y A R E E S S E N T I A L L Y T O R U N E D U C A T I O N A L I N S T I T U T E F O R I M P A R T I N G E D U C A T I O N . I N O U R C O N S I D E R E D O P I N I O N , L D . C I T H A S N O T E X A M I N E D G E N U I N E N E S S O F O B J E C T S A N D E R R E D I N R E J E C T I N G APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT, WITHOUT FOLLOWING DUE PROCEDURE AS PER LAW. 7 . 1 . WE ARE, THEREFORE , INCLINED TO SET ASIDE THIS ISSUE BACK TO LD.CIT FOR RECONSIDERATION OF APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT AS PER LAW. ITA 2246/DEL/2016 A.Y.: NOT APPLICABLE SOCIETY FOR EDUCATION & EXCELLENCE, NEW DELHI 5 8 . ACCORDINGLY GROUNDS RAISED BY ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. 9 . IN THE RESULT APPEAL FILED B Y ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 1 7 T H AUGUST, 2018. S D / - S D / - ( R.S.SYAL ) (BEENA A PILLAI) VICE PRESIDENT JUDICIAL MEMBER DT. 1 7 T H A UGUST, 2018 GMV COPY FORWARDED TO: - 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR, ITAT - TRUE COPY - BY ORDER, ASSISTANT REGISTRAR ITAT DELHI BENCHES ITA 2246/DEL/2016 A.Y.: NOT APPLICABLE SOCIETY FOR EDUCATION & EXCELLENCE, NEW DELHI 6 S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON DRAGON 1 6 . 8 . 1 8 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 1 7 . 8 . 1 8 SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCEMENT SR. PS/PS 7 FILE SENT TO BENCH CLERK SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER