Vasant Kothari Family Foundation, Pune V. CIT-I, Pune

ITA 327/PUN/2013

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9498 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 14-01-2015
• Assessment Year: misc
• Appeal Filed On: 01-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VERMA
• Keywords: Charitable institution
• Section: 12A; 12AA; 12; 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER, AND SHRI R.K. PANDA, ACCOUNTANT MEMBER. ITA.NO.327/PN/2013 VASANT KOTHARI FAMILY FOUNDATION, A1/801, OXFORD VILLAGE, WANOWRIE, PUNE 411040 PAN NO.AABTV5766B .. APPELLANT VS. CIT-I, PUNE .. RESPONDENT ASSESSEE BY : SHRI PRAMOD SHINGTE REVENUE BY : SMT. M.S. VERMA, CIT DATE OF HEARING : 15-01-2015 DATE OF PRONOUNCEMENT : 27-02-2015 ORDER PER R.K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 24-12-2012 OF THE CIT(A)-I, PUNE REFUSING REGISTRAT ION U/S.12A OF THE I.T. ACT. 2. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE TRUST WAS SET UP VIDE TRUST DEED DATED 21-04-2011. IT WAS REGISTERED UND ER THE BOMBAY PUBLIC TRUST ACT, 1950 VIDE NOTIFICATION DATED 30-09-2011. IT FILED THE APPLICATION IN FORM NO.10A BEFORE CIT-I, PUNE REQUE STING REGISTRATION U/S.12A OF THE I.T. ACT. THE LD. CIT CALLED FOR CE RTAIN DETAILS FROM THE ASSESSEE SUCH AS, (I) CHARITABLE ACTIVITIES CARRIED OUT SINCE INCEPTION ALONG WITH EVIDENCES (2) STATEMENT OF ACCOUNTS FOR THE F. Y. 2011-12, (3) COPIES OF BANK ACCOUNT ETC. 2 3. IN RESPONSE TO THE SAME, THE ASSESSEE FILED CERT AIN DETAILS. IT STATED THAT THE TRUST HAS NOT YET COMMENCED ANY CHARITABLE ACTIVITIES AND FURTHER DURING F.Y.2011-12 NO TRANSACTION WHATSOEVER TOOK P LACE EXCEPT FOR GETTING HALF YEARLY INTEREST ON THE CORPUS DONATION . FROM THE VARIOUS DETAILS FURNISHED BY THE ASSESSEE, THE LD. CIT NOTE D THAT THE OBJECTS OF THE ASSESSEE TRUST ARE NO DOUBT BY AND LARGE CHARITABLE . HE HOWEVER NOTED THAT AS PER ITEM 4 OF THE OBJECT CLAUSE, ONE OF THE OBJE CTS OF THE APPLICANT IS TO SUPPORT THE ACTIVITIES OF CHETANA EDUCATIONAL TRUST IN PUNE, CHETANA EDUCATION TRUST IN LONDON AND CHETANA EDUCATIONAL T RUST IN BANGALORE. AS PER ITEM NO.10 OF THE OBJECT CLAUSE THE APPLICAN T TRUST IS TO MAKE CONTRIBUTIONS AND DONATIONS TO OTHER CHARITABLE TRU STS IN INDIA AND UK WHICH HAVE THE OBJECTIVES OF PROMOTING THE ADVANCEM ENT OF EDUCATION IN INDIA AND/OR THE DEVELOPMENT OF INDIAN MUSIC, DANCE , ARTS AND CRAFTS IN THE UK. HE THEREFORE WAS OF THE OPINION THAT THESE OBJ ECTIVES ARE NOT ONLY VAGUE BUT ARE ALSO IMPERMISSIBLE EXCEPT ON THE BASI S OF A GENERAL OR A SPECIAL ORDER ISSUED BY THE CBDT. HE FURTHER OBSER VED THAT THE ASSESSEE TRUST HAS NOT CARRIED OUT ANY ACTIVITY SO FAR. THI S, ACCORDING TO HIM, ITSELF WOULD BE SUFFICIENT TO HOLD THAT NO SATISFACTION CA N BE FORMED AS OF NOW REGARDING THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE TRUST. ACCORDING TO THE CIT, IN ORDER TO GRANT REGISTRATIO N U/S.12A TO A CHARITABLE TRUST OR AN INSTITUTION, THE CIT HAS TO BE SATISFIE D ABOUT THE OBJECTS AS WELL AS ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE T RUST OR INSTITUTION. THESE ARE THE ESSENTIAL PREREQUISITES WHICH MUST BE MET. SINCE IN THE INSTANT CASE THESE PREREQUISITES ARE NOT SATISFIED, THE LD. CIT HELD THAT THE ASSESSEE IS NOT ENTITLED TO REGISTRATION U/S.12A OF THE ACT. H E ACCORDINGLY REJECTED THE APPLICATION FILED IN FORM NO.10A. 3 4. THE LD. COUNSEL FOR THE ASSESSEE STRONGLY OPPOSE D THE DENIAL OF REGISTRATION U/S.12A. HE SUBMITTED THAT THE TRUST WAS SET UP VIDE TRUST DEED DATED 21-04-2011 AND APPLIED FOR REGISTRATION U/S.1 2A. REFERRING TO PAGE 18 OF THE PAPER BOOK THE LD. COUNSEL FOR THE ASSESS EE DREW THE ATTENTION OF THE BENCH TO THE SETTLEMENT OF THE TRUST WHICH READ S AS UNDER : LATE VASANT CHUNILAL KOTHARI WAS AN EMINENT LEGAL PR ACTITIONER IN LONDON. HE HAD EXECUTED HIS LAST WILL ON 13 TH JUNE 2009 AND A CODICIL ON 17 TH JUNE 2009 WHEREIN HE I HAD BEQUEATH MANY LEGACIES FREE OF INHERITANCE TO SEVERAL RELIGIOUS, EDUCATIONAL AND SOCIAL ORGANIZATION S FOR CHARITABLE PURPOSES. IN THE CODICIL DATED 17 TH JUNE 2009 HE HAS EXPRESSED HIS DESIRE TO FORM A CHARITABLE TRUST BY NAME 'VASANT KOTHARI FA MILY FOUNDATION' BY HIS BROTHER MR. HUKMICHAND KOTHARI AND HIS NEPHEWS MR. ASHOK KOTHARI AND MR. RAJENDRA KOTHARI. LATE VASANT KOTHARI LEFT F OR HIS HEAVENLY ABODE ON 28 TH JUNE 2009. IN PURSUANCE OF THE DESIRE TO DO CHARITABLE WORK AND FOR CARRYING OUT SUCH DESIRE INTO EFFECT THE SETTLER, I.E. THE WIDOW OF LA TE VASANT KOTHARI DOTH HEREBY GRANT, TRANSFER AND ASSIGN UNTO AND SETTLE UPON THE TRUSTEES THE SAID SUM OF RS. 10,000/- ( RUPEES TEN THOUSAND ONLY) ALR EADY HANDED OVER TO THE TRUSTEES BY WAY OF THE CORPUS AND ALL THE RIGHT TITLE, INTEREST, CLAIM AND DEMAND INTO OR UPON THE SAID SUM OF RS, 10,0 00/- ( RUPEES TEN THOUSAND ONLY) TO HAVE AND TO HOLD THE SAID SUM OF RS. 10,000/- UNTO THE TRUSTEES BUT UPON AND SUBJECT TO THE POWERS AND PRO VISIONS HEREINAFTER CONTAINED, EXPRESSED OF AND CONCERNING TH E SAME. 4.1 REFERRING TO PAGE 20 OF THE PAPER BOOK THE LD. COUNSEL FOR THE ASSESSEE DREW THE ATTENTION OF THE BENCH TO THE VAR IOUS AIMS AND OBJECTS OF THE TRUST. HE SUBMITTED THAT FOR SATISFYING CERTAI N OBJECTS THE TRUST HAS TO FOLLOW THE DIRECTIONS OF THE CBDT. HOWEVER, THESE OBJECTS ARE YET TO BE CARRIED OUT. AS REGARDS THE ORDER OF THE LD.CIT TH AT THE ASSESSEE HAS NOT CARRIED OUT ANY ACTIVITIES SO FAR AND THE PREREQUIS ITES THAT THE CIT HAS TO BE SATISFIED ABOUT THE OBJECTS AS WELL AS ABOUT THE GE NUINENESS OF THE ACTIVITIES OF THE TRUST OR INSTITUTION ARE NOT MET HE SUBMITTED THAT AT THE TIME OF REGISTRATION THESE THINGS ARE NOT REQUIRED. THE AO AT THE TIME OF ASSESSMENT CAN VERIFY AND SATISFY HIMSELF ABOUT THE OBJECTIVES OF THE TRUST AND THE GENUINENESS OF THE ACTIVITIES FOR ALLOWING BENEFIT OF SECTION 11. 4 HE SUBMITTED THAT IT IS INCUMBENT UPON THE CIT TO D ECIDE THE ISSUE OF GRANTING OR DECLINING OF REGISTRATION ONLY WITHIN S TATUTORY PRECONDITIONS AS LAID DOWN U/S.12A R.W.S.12AA. SATISFACTION OF STAT UTORY CONDITIONS OF SECTION 11, 12 AND 13 IS NOT RELEVANT FOR PURPOSE O F GRANTING OF REGISTRATION U/S.12A OF THE I.T. ACT. THEREFORE, WHILE CONSIDER ING THE GRANT OF REGISTRATION U/S.12AA HE SHOULD SATISFY HIMSELF ONL Y ABOUT THE GENUINENESS OF ACTIVITIES OF TRUST IN ACCORDANCE WI TH ITS OBJECTS AND NOT ABOUT THE CREDENTIAL, CAPACITY AND QUALIFICATION ET C. OF TRUST. FOR THE ABOVE PROPOSITION THE LD. COUNSEL FOR THE ASSESSEE RELIED ON THE DECISION OF THE CHANDIGARH BENCH OF THE TRIBUNAL IN THE CASE OF PIM S MEDICAL AND EDUCATIONAL CHARITABLE SOCIETY VS. ACIT REPORTED IN (2013) 31 TAXMANN.COM 371 AND THE DECISION OF THE PUNE BENCH OF THE TRIBUNAL IN THE CASE OF OM SAI SHAIKSHANIK PRASARAK SANSTHA VS. CIT VIDE ITA NO.1967/PN/2012 ORDER DATED 09-07-2014. 5. THE LD. DEPARTMENTAL REPRESENTATIVE ON THE OTHER HAND HEAVILY RELIED ON THE ORDER OF THE CIT. 6. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY B OTH THE SIDES, PERUSED THE ORDER OF THE LD.CIT AND THE PAPER BOOK FILED ON BEHALF OF THE ASSESSEE. WE HAVE ALSO CONSIDERED THE VARIOUS DECI SIONS CITED BEFORE US. WE FIND THE LD.CIT IN THE INSTANT CASE REFUSED GRAN T OF REGISTRATION U/S.12A ON THE GROUND THAT THE ASSESSEE TRUST HAS N OT CARRIED OUT ANY ACTIVITIES SO FAR AND THAT CERTAIN OBJECTS ARE NOT ONLY VAGUE BUT ARE ALSO IMPERMISSIBLE EXCEPT ON THE BASIS OF A GENERAL OR A SPECIAL ORDER ISSUED BY THE CBDT. FURTHER, ACCORDING TO HIM, FOR GRANTING REGISTRATION U/S.12A THE CIT HAS TO BE SATISFIED ABOUT THE OBJECTS AS WE LL AS ABOUT THE 5 GENUINENESS OF THE ACTIVITIES OF THE TRUST OR INSTI TUTION. ALTHOUGH THE OBJECTS IN THE INSTANT CASE ARE NO DOUBT BY AND LAR GE CHARITABLE, HOWEVER, CERTAIN OBJECTS ACCORDING TO THE LD.CIT CAN BE CARR IED OUT ONLY AFTER GENERAL OR SPECIAL ORDER ISSUED BY THE CBDT. IT IS THE SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE THAT FOR GRANTING REGI STRATION U/S.12A THE LD.CIT HAS TO SATISFY HIMSELF ONLY ABOUT THE GENUIN ENESS OF ACTIVITIES OF THE TRUST IN ACCORDANCE WITH ITS OBJECTS. FOR THE OTHER THINGS THE AO AT THE ASSESSMENT STAGE CAN VERIFY/SATISFY HIMSELF ABOUT T HE FULFILLMENT OF THE OTHER CONDITIONS. 6.1 WE FIND THE CHANDIGARH BENCH OF THE TRIBUNAL IN THE CASE OF PIMS MEDICAL AND EDUCATIONAL CHARITABLE SOCIETY (SUPRA) AT PARA 16 OF THE ORDER HAS OBSERVED AS UNDER : 16. IT IS SETTLED PROPOSITION THAT REGISTRATION BY ITSE LF WOULD NOT CONFER THE RIGHT TO EXEMPTION. THE REGISTRATION IS GRANTED B Y THE CIT U/S 12A READ WITH SECTION 12AA OF THE ACT, WHEREAS EXEMPTION IS GRANTED BY THE AO, ON THE SATISFACTION OF STATUTORY CONDITION AS LAID DOWN UNDER SECTION 11,12 AND 13 OF THE ACT. FURTHER, AS PER SECTION 12A A(3) OF THE ACT, CIT IS COMPETENT TO CANCEL THE REGISTRATION OF AN ASSESSEE IF SA TISFIED THAT ITS ACTIVITIES ARE NOT GENUINE. THE REGISTRATION U/S 12A R EAD WITH SECTION 12AA, IS ONE OF THE CONDITIONS FOR EXEMPTION AND NOT THE ONLY CONDITION FOR EXEMPTION. IN THIS SPECIFIC CONTEXT, THE CIT, IS R EQUIRED TO APPRECIATE THE REAL ACTIVITIES AND OBJECTS BUT NOT THE ENABLING POWERS TO ACHIEVE THE OBJECTS. 6.2 SIMILARLY THE TRIBUNAL AT PARA NOS. 19 TO 22 OF THE ORDER HAS OBSERVED AS UNDER : 19. AT THE TIME OF REGISTRATION PROCEEDINGS U/S 12A R .W. SECTION 12AA OF THE ACT, THE CIT IS STATUTORILY REQUIRED TO EXAMINE A ND SATISFY HIMSELF AS TO THE GENUINENESS OF THE ACTIVITIES OF THE TRUST OR INSTIT UTION, CARRIED ON, IN CONSONANCE WITH ITS OBJECTS. THE OBJECTS OF THE TRUST OR INSTITUTION MUST CONFORM TO THE DEFINITION OF 'CHARITABLE PURPOSE' AS DEFINED U/S 2(15) OF THE ACT. THE OBJECTS OF THE ASSESSEE SOCIETY ARE COVERED BY THE DEFINITION 'CHARITABLE PURPOSE' AS PROVIDED U/S 2(15) OF THE OBJE CT, AS THE APPELLANT SOCIETY IS ENGAGED IN PROVIDING TECHNICAL EDUCATION A ND MEDICAL RELIEF. THE FIRST PROVISO TO SECTION 2(15) OF THE ACT IS NOT APPLIC ABLE TO THE SOCIETY AS THE SAME COVERS THE LAST LIMB OF THE 'CHARITABLE PURPO SE', VIZ 'THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC U TILITY', BEING LEGALLY SETTLED PROPOSITION. THE CIT HAS PROCEEDED TO CONCLUDE THAT THE ACTIVITIES OF THE ASSESSEE SOCIETY IS RUN ON COMMERCIAL LINE WITH PR OFIT MOTIVE, 6 IGNORING THE EXPRESS OBJECT OF PROVIDING MEDICAL FACI LITIES ON THE LINE OF PGI, CHANDIGARH. THE TAINT OF COMMERCIALITY OR PROF ITABILITY IS COVERED BY THE FIRST PROVISO TO SECTION 2(15) OF THE ACT. MERE E ARNING OF SURPLUS INCOME IN CARRYING OUT CHARITABLE ACTIVITIES WITHIN THE MEANING OF SECTION 2(15) OF THE ACT, WOULD NOT RENDER THE ACTIVITIES OF THE APPELLANT SOCIETY, AS NON-GENUINE, AND NON-CHARITABLE AS CONSTRUED BY TH E ID. CIT, IN THE INSTANT CASE. THIS PROPOSITION IS FORTIFIED BY THE DECISI ON OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF PINEGROVE INTERNATIONAL CHARITABLE TRUST (SUPRA}. 20. THE SATISFACTION OF STATUTORY CONDITIONS OF SECTION S 11, 12 & 13 OF THE ACT, FOR THE PURPOSE OF GRANT OF REGISTRATION U/S 12A R.W. SECTION 12AA OF THE ACT, ARE NOT RELEVANT. HOWEVER, THE ID. CIT HEA VILY RELIED ON THE ISSUE OF CORPUS FUND AND SECURED LOANS, RAISED BY THE APPELLA NT SOCIETY, IN CONCLUDING THE ACTIVITIES OF THE APPELLANT AS NON-GEN UINE. THE NATURE AND SOURCE OF CORPUS FUNDS AND SECURED LOANS ARE REQUIRED TO BE EXAMINED BY THE AO, IN THE LIGHT OF THE PROVISIONS OF SECTION 11, 12, 13 R.W. SECTIONS 2(24) (IIA) AND SECTION 15 BBC OF THE ACT. IT IS INC UMBENT UPON THE CIT, TO DECIDE THE ISSUE OF GRANTING OR DECLINE OF REGISTRATIO N, ONLY WITHIN STATUTORY PRECONDITIONS AS LAID DOWN U/S 12A READ WITH SECTION 12AA OF THE ACT. NEEDLESS TO STATE HERE THAT REGISTRATION PROCE EDINGS U/S 12A R.W. SECTION 12AA OF THE ACT BEFORE THE CIT, ARE NOT THE SAME AS ASSESSMENT PROCEEDINGS BEFORE THE AO. BOTH THE PROCEEDINGS BEFOR E DIFFERENT REVENUE AUTHORITIES ARE DIFFERENT AND INDEPENDENT, WITH DIFF ERENT STATUTORY SUBJECT MATTER AND JURISDICTION. FURTHER, THE GRANT OF REGIST RATION U/S 12AA OF THE ACT IS NOT IN ITSELF CONCLUSIVE AND THE SOLE STATUTORY C ONDITION, FOR THE PURPOSE OF EXEMPTION OF INCOME OF THE TRUST OR THE IN STITUTION, AS STATUTORY CONDITIONS OF SECTION 11,12 & 13 OF THE ACT ARE REQUIRED TO BE SATISFIED, FOR SUCH EXEMPTION. THEREFORE, GRANT OF REG ISTRATION CONFERS MERELY ENTITLEMENT TO SUCH EXEMPTION, ON SATISFACTION OF STATUTORY CONDITIONS PRESCRIBED UNDER OTHER RELEVANT PROVISIONS O F THE ACT. THE GRANT OF REGISTRATION U/S 12AA OF THE ACT, IS NOT ETER NAL IN NATURE, AS THE LEGISLATURE HAS PROVIDED SAFEGUARD U/S 12AA(3) OF THE A CT, TO PROTECT THE INTEREST OF REVENUE AND THE CIT IS COMPETENT TO CANC EL SUCH REGISTRATION, IF HE IS SUBSEQUENTLY SATISFIED THAT ACTIVITIES OF THE TRUST OR INSTITUTION ARE NOT BEING CARRIED OUT, IN ACCORDANCE WITH ITS OBJECT S. IN THE PRESENT CASE, THE ID. CIT HAS REJECTED GRANT OF REGISTRATION U/S 12A R.W. SECTION 12AA OF THE ACT, ON OBSERVATIONS NOT RELEVANT TO THE LEGISLATI VE INTENT, EMBODIED IN SUCH STATUTORY PROVISIONS. 21. IT IS INCUMBENT UPON THE CIT, WHILE CONSIDERING GRANT ING OF REGISTRATION U/S 12AA OF THE ACT THAT HE SHOULD SATISFY HIMSELF ONLY ABOUT GENUINENESS OF ACTIVITIES OF THE TRUST, IN ACCORDANCE W ITH ITS OBJECTS AND NOT ABOUT CREDENTIAL, CAPACITY AND QUALIFICATION ET C. OF TRUST AS HELD BY CHENNAI BENCH OF THE TRIBUNAL IN PRAYER FOR INDIA V. ITO [2012] 20 TAXMANN.COM 359 (CHENNAI). IT IS HELD IN VIDHYA SIKSHAA EDUCATIONAL & CHARITABLE TRUST V. CIT [2012] 51 SOT 63/[2011] 15 TAXMANN.COM 269 ( CHENNAI) (URO) THAT THE ACT SPECIFIES A METHODOLOGY WHERE ANONYMOUS RECEIPTS ARE RECEIVED BY TRUST. SECTION 115BBC OF THE ACT SPECIFIES A METHOD FOR TAXING ANONYMOUS DONATIONS. THUS, EVEN IF T HE TRUSTEES DIDN'T HAVE THE WHEREWITHAL TO CONTRIBUTE THE SUMS MENTIONE D AND EVEN IF SUCH DONATION WAS TREATED AS COMING FROM ANONYMOUS SOURCES, I T WOULD NOT BE REASON TO DENY REGISTRATION U/S 12AA OF THE ACT. 22. IN VIEW OF THE ABOVE LEGAL AND FACTUAL DISCUSSIONS, IT IS EVIDENT THAT THE ASSESSEE-SOCIETY HAS FULFILLED STATUTORY CONDITIONS, FOR GR ANT OF REGISTRATION U/S 12A READ WITH SECTION 12AA OF THE ACT, AS THE SOCIE TY IS CARRYING OUT ITS ACTIVITIES, IN PURSUANCE OF ITS OBJECTS. THE OBSERVATIO N OF THE CIT THAT SOCIETY IS RUNNING ON COMMERCIAL LINES AND MAKING PROF IT, IS NOT ACCEPTABLE IN VIEW OF THE SETTLED LEGAL PROPOSITION T HAT ELEEMOSYNARY ELEMENT IS NOT ESSENTIAL FOR CHARITABLE PURPOSE, AS THE DEFINITION OF 'CHARITABLE PURPOSE' HAS BEEN STATUTORILY DEFINED U/S 2 (15) OF THE ACT AND 7 JUDICIALLY INTERPRETED BY THE COURTS. TO PROVIDE SOME THING MORE FOR NOTHING OR FOR LESS THAN IT COSTS OR LESS THAN ITS ORDINAR Y VALUE, IS NOT CONTEMPLATED UNDER THE DEFINITION OF 'CHARITABLE PU RPOSE' AS PROVIDED U/S 2(15) OF THE ACT. ACCORDINGLY, CIT IS DIRECTED TO PA SS CONSEQUENTIAL ORDER, GRANTING REGISTRATION TO THE ASSESSEE APPELLANT U/S 12AA OF THE ACT. 6.3 FROM THE ABOVE, IT IS CLEAR THAT FOR THE PURPOS E OF GRANT OF REGISTRATION U/S.12A R.W.S. 12AA, SATISFACTION OF S TATUTORY CONDITIONS TO SUB-SECTIONS 11, 12 AND 13 ARE NOT RELEVANT. SINCE THE OBJECTS OF THE ASSESSEE TRUST ARE BY AND LARGE CHARITABLE AS HELD BY THE LD.CIT, THEREFORE, UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, WE A RE OF THE CONSIDERED OPINION THAT THE LD.CIT IS NOT JUSTIFIED IN DENYING REGISTRATION U/S.12A OF THE I.T. ACT. WE THEREFORE SET ASIDE THE ORDER OF THE CIT AND DIRECT HIM TO GRANT REGISTRATION U/S.12A OF THE I.T. ACT. WE HOL D AND DIRECT ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 27-02-2015. SD/- SD/- (SUSHMA CHOWLA) ( R.K. PAN DA ) JUDICIAL MEMBER ACCOUNTANT MEMBER SATISH PUNE, DATED 27 TH FEBRUARY, 2015 COPY OF THE ORDER IS FORWARDED TO: 1. THE ASSESSEE 2. THE DEPARTMENT 3. THE CIT-I, PUNE 4. THE DR A BENCH, PUNE. 5. GUARD FILE BY ORDER // TRUE COPY // ASSISTANT REGISTRAR, INCOME TAX APPELLATE T RIBUNAL, PUNE