M/s. RISHIRAJ K.M.B. EDUCATION SOCIETY, Bhopal V. The CIT, Bhopal

ITA 434/IND/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2768 (ITAT-INDORE)
• Duration Of Justice: 4 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 20-06-2018
• Assessment Year: misc
• Appeal Filed On: 03-06-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LALCHAND
• Assessee Lawyers: S S DESHPANDE
• Keywords: Search and seizure; Charitable institution; Cancellation of registration
• Section: 143(3); 153A; 80G; 12A; 12AA; 12; 11; 139

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.434/IND/2014 ASSESSMENT YEAR: NA RISHIRAJ K.M.B. EDUCATION SOCIETY, T-15, THIRD FLOOR, CITY CENTRE, PLOT NO.1, PRESS COMPLEX, M.P. NAGAR ZONE 1, BHOPAL / VS. CIT BHOPAL ( APPELLANT ) ( REVENUE ) P.A. NO. AAAAR6178B APPELLANT BY SHRI S.S. DESHPANDE, CA RESPONDENT BY SHRI LAL CHAND, CIT - DR DATE OF HEARING: 10.07.2018 DATE OF PRONOUNCEMENT: 21.08.2018 / O R D E R PER KUL BHARAT, J.M: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS), BHOPAL, DATED 29.04.2014. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: RISHIRAJ K.M.B EDUCATION SOCIETY 2 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE OF THE ASSESSEE THE LD. CIT HAS NOT JUSTIFIED IN HOL DING THAT THE ACTIVITIES OF THE ASSESSEE SOCIETY ARE NOT GENUINE AND ARE NOT IN ACCORDANCE WITH THE OBJECTS OF THE SOCIETY. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE OF THE ASSESSEE THE LD. CIT WAS NOT JUSTIFIED IN CANCELLING THE REGISTRATION U/S 12AA AND THAT TOO W .E.F. 01.04.2007. 2. BRIEFLY STATED THE FACTS ARE THAT THE ASSESSEE SOCIET Y WAS GRANTED REGISTRATION U/S 12AA OF THE ACT ON 28.03.200 8 W.E.F. 01.04.2007. IT IS OBSERVED BY THE LD. CIT TH AT THE ASSESSEE SOCIETY IS RUNNING EDUCATIONAL INSTITUTIONS MANAGED BY KEER FAMILY. THE DETAILS OF THE FAMILY MEMBE RS ARE RECORDED IN THE IMPUGNED ORDER. IT IS FURTHER OB SERVED THAT THE SEARCH AND SEIZURE ACTION U/S 132(1) OF THE AC T WAS CONDUCTED IN THE CASES OF CHOUKSCY GROUP OF BHOPAL ON 23.07.2009. DURING THE COURSE OF SEARCH CERTAIN DOCUMENTS BELONGING TO THE ASSESSEE WERE FOUND AND SEIZED. THE AO INITIATING PROCEEDINGS U/S 153C OF TH E ACT FOR A.YS. 2004-05 TO 2009-10, THEREBY CALLING UPON T HE ASSESSEE TO FURNISH ITS RETURNS OF INCOME. IN RESPON SE THERETO THE ASSESSEE FILED RETURNS OF INCOME AT NIL B Y CLAIMING EXEMPTION U/S 11 OF THE IT ACT. AFTER CONSI DERING THE FACTS AND SUBMISSION OF THE ASSESSEE, THE AO PASSED RISHIRAJ K.M.B EDUCATION SOCIETY 3 ASSESSMENT ORDER U/S 153A R.W.S. 143(3) FOR A.YS. 20 04-05 TO 2009-10 AND ASSESSMENT ORDER U/S 143(3) FOR A.Y. 2 010- 11 ON 13.08.2011. IN THE ASSESSMENT ORDERS FOR A.YS . 2004-05 TO 2010-11, THE AO DISALLOWED THE CLAIM OF TH E ASSESSEE FOR EXEMPTION U/S 11 AND ASSESSED THE TOTAL INCOME. IN THIS BACKGROUND THE LD. CIT OBSERVED THAT THE ASSESSEE SOCIETY HAD VIOLATED THE PROVISIONS OF SECTI ONS 11 & 12 OF THE ACT AND PROCEEDED TO CANCEL THE REGISTRATI ON GRANTED U/S 12AA OF THE ACT. 3. AGGRIEVED BY THIS THE ASSESSEE IS IN PRESENT APPEAL . 4. LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMIS SIONS AS MADE IN THE WRITTEN SUBMISSIONS. THE SUBMISSIONS OF THE ASSESSEE ARE AS UNDER: THE ASSESSEE SOCIETY IS A REGISTERED SOCIETY CARRY ING ON THE ACTIVITY OF RUNNING COLLEGES. THE SOCIETY IS RUNNIN G ENGINEERING COLLEGE. THE SOCIETY IS REGISTERED U/S 12AA OF THE INCOME TAX ACT, VIDE ORDER DATED. 28/03/2008 (PAGE. 24 OF PB-2 ). THE SOCIETY IS A REGULAR INCOME TAX ASSESSEE AND HAS BE EN FILING ITS RETURN U/S 139 ALONG WITH THE AUDITED ACCOUNTS. THE RE HAS BEEN NO CHANGE IN THE OBJECTS OF THE SOCIETY SINCE THEN. THE REGISTRATION WAS GRANTED TO THE SOCIETY BY THE LD. CIT AFTER VERIFYING ALL THE ACCOUNTS UP TILL THAT DATE AND AFTER SATISFYING HIMSELF REGARDING THE OBJECTS OF THE SOC IETY AND GENUINENESS OF THE ACTIVITIES OF THE SOCIETY AS REQ UIRED BY THE PROVISIONS OF SECTION 12AA(1) OF THE ACT. THEREAFTE R FROM THE PERIOD OF 29.03.2008 THERE IS NO CHANGE IN THE OBJE CTS OR THE ACTIVITIES OF THE SOCIETY. THUS IT CANNOT BE SAID T HAT THE ASSESSEE HAS CARRIED ON ACTIVITIES WHICH ARE NOT IN ACCORDANCE WITH ITS OBJECT. RISHIRAJ K.M.B EDUCATION SOCIETY 4 DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AO HAS ALSO VERIFIED ALL THE BOOKS OF ACCOUNTS AND OTHER S UPPORTING DOCUMENTS REGARDING THE ACTIVITIES OF THE SOCIETY A ND HAS NOT FOUND ANY DEFECT WHICH WOULD HAVE WARRANTED AN ADVE RSE COMMENT OR FINDING ON THE ACTIVITIES OR THE OBJECTS OF THE SOCIETY. THREE GROUPS OF PERSONS ESTABLISHED VARIOUS TRUST/ SOCIETIES FOR THE PURPOSE OF IMPARTING EDUCATION. T HESE SOCIETIES WERE MOSTLY RUNNING THE ENGINEERING/ B. ED /MBA/PHARMACY/MCACOLLEGES. ONLY IN ONE SOCIETY THER E WAS A DENTAL COLLEGE. THE GROUPS WERE- CHOUKSEY GROUP, DHAKRE GROUP AND KEER GROUP. THE FOLLOWING SOCIETIES WERE ESTABLISHED. 1. H.K KALCHURI EDUCATION TRUST, BHOPAL. 2. HAI HAY KHESTRIYA EDUCATION SOCIETY, BHOPAL 3. JAI NARAIN SHIKSHA SAMITI, BHOPAL 4. RISHIRAJ MEMORIAL EDUCATION WELFARE SOCIETY, BHOPAL 5. RISHIRAJ SINGH MEMORIAL EDUCATION WELFARE SOCIETY, BHOPAL 6. SARDAR HARNAM SINGH KEER PUBLIC WELFARE TRUST, BHOP AL 7. RISHIRAJ KMB EDUCATION INSTITUTION, BHOPAL IN THE FIRST THREE INSTITUTIONS THE CHOUKSEY GROUP WAS RUNNING THE COLLEGES. IN OTHER INSTITUTIONS THE THR EE GROUPS WERE RUNNING THE ENGINEERING/ PHARMACY COLLEGES. ALL THE SE TRUSTS/SOCIETIES WERE GRANTED THE REGISTRATION U/S 12A/12AA. SOME DISPUTE ABOUT THE ADMINISTRATION OF VARIOUS CO LLEGES AROSE BETWEEN THESE GROUPS AND IT WAS DECIDED TO SEPARATE THE ADMINISTRATION OF VARIOUS COLLEGES TO BE CONDUCTED BY EACH GROUP. ACCORDINGLY THE MANAGEMENT OF THE TRUSTS/SOC IETIES WERE MODIFIED AND INDIVIDUAL TRUST/SOCIETIES WERE MADE P ART OF THE RESPECTIVE GROUPS FOR ADMINISTRATION. LAST TWO TRUS TS HAVE CAME IN THE MANAGEMENT OF KEER GROUP. THE AGREEMENT WAS ENTERED INTO ON 13/07/2008 (PAGE 30 OF PB-2). IT WAS AGREED BETWEEN THE VARIOUS GROUPS THAT, FOR RUNNING THE COLLEGES S MOOTHLY THE FINANCIAL ASSISTANCE WOULD BE GIVEN. A HAND WRITTEN UNDERSTANDING WAS FOUND DURING THE COURSE OF SEARCH AT THE PREMISES OF CHOUKSEY GROUP WHICH STATED THAT THE CH OUKSEY GROUP WOULD PAY THE NECESSARY AMOUNT TO THE TRUST O F KEER GROUP. ACCORDINGLY THE ASSESSEE SOCIETY AND SARDAR HARNAM RISHIRAJ K.M.B EDUCATION SOCIETY 5 SINGH KEER PUBLIC WELFARE TRUST RECEIVED DONATION F ROM THE OTHER GROUP PERSONS AND INSTITUTIONS. A SEARCH WAS CONDUCTED U/S 132(1) IN THE CASES OF CHOUKSEY GROUP ON 23/07/2009. DURING THE COURSE OF SEARCH CERTAIN DOCUMENTS WERE FOUND IN RESPECT OF THESE CH ARITABLE INSTITUTIONS. ON THE BASIS OF THE SEARCH THE NOTICE S U/S 153C WERE ISSUED IN THE CASE OF THE ASSESSEE. DURING THE COURSE OF THE ASSESSMENT THE LD. A.O OBSERVED THAT THE ASSESS EE SOCIETY HAS GIVEN ADVANCES TO CERTAIN PERSONS WHO WERE CONN ECTED WITH THE OFFICE BEARERS AND AS SUCH THE TRANSACTION ARE COVERED U/S 13(2)/13(3). IT WAS ACCORDINGLY HELD BY HIM (PA RA 6.8 PAGE 4 OF THE ASSESSMENT ORDER) .........IN ADVANCING S UCH AMOUNTS THE TRUST HAS COMPLETELY ACTED AS A PRIVATE DISCRET IONARY TRUST AND SUCH ACTIVITY CANNOT BE SAID TO BE CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST AND CANNOT BE SAID TO BE GENUINE AS WELL. ACCORDINGLY EXEMPTION TO THE ASSESSEE U/S 11 /12 WAS DENIED BY THE AO. RELYING ON THE OBSERVATIONS OF THE LD. A.O IN THE ASSESSMENT, THE LD. CIT BHOPAL ISSUED SHOW CAUSE NO TICES TO THE ASSESSEE FOR CANCELLING THE REGISTRATION GRANTE D U/S 12AA(3). VIDE ORDER DATED 29/04/2014 THE LD. CIT CA NCELLED THE REGISTRATION GRANTED TO THE ABOVE SOCIETY. WHIL E PASSING THE CANCELLATION ORDER THE LD. CIT HAS TOTALLY RELIED O N THE ASSESSMENT ORDER PASSED BY THE LD. AO U/S 153C. FRO M PAGE 3 ONWARDS TO LAST PAGE THE CONCLUSIONS OF THE LD. A.O HAVE BEEN REPRODUCED INCLUDING THE HAND WRITTEN MEMORANDUM OF UNDERSTANDING SEIZED DURING THE COURSE OF THE SEARC H. AFTER REPRODUCING THE OBSERVATION IN PARA 17 THE LD. CIT CANCELLED THE REGISTRATION BY CONCLUDING IN FOUR LINES AS UNDER:- IN VIEW OF THE FACTS DISCUSSED ABOVE , I AM SATISFI ED THAT THE ACTIVITIES OF THE ASSESSEE SOCIETY ARE NOT GENU INE AND ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECT OF THE SOCIETY, HENCE THE REGISTRATION OF THE SOCIETY IS C ANCELLED WITH EFFECT FROM 01/04/2007. WHILE PASSING THE ORDER U/S 153C THE LD. A.O HAS GI VEN THE FOLLOWING REASONING. RISHIRAJ K.M.B EDUCATION SOCIETY 6 I (PARA.8): ADVANCES ARE GIVEN TO THE VARIOUS PAR TIES WHICH ARE RELATED. 5, 00,000/- H.S BAGGA. 7, 00,000/- ADVANCE FOR BUILDING CONSTRUCTION. 15,00,000/- ADVANCE FOR SITE DEVELOPMENT. IT WAS SUBMITTED BEFORE THE LD. A.O AND ALSO BEFORE THE LD. CIT THAT THE ADVANCES UNDER CONSIDERATION WERE GIVEN OUT OF INTEREST FREE UNSECURED LOANS RECEIVED FROM THE MEM BERS AND NOT OUT OF ANY INCOME OR FUNDS OF THE SOCIETY. IT M AY BE MENTIONED THAT DURING THE YEAR(A.Y 2009-10) IN WHIC H SUCH ADVANCES WERE GIVEN THERE WAS AN INCREASE IN INTER EST FREE UNSECURED LOAN FROM MEMBERS OF RS. 47,60,000/-. OUT OF THIS UNSECURED LOAN A SUM OF RS. 6,70,000/-(TOTAL LOAN UP TILL THE YEAR END RS. 9,70,000/-) WAS RECEIVED FROM MR. G.S. KEER WHO IS THE MANAGING DIRECTOR OF UPKAR CONSTRUCTION CO TO W HOM ADVANCES OF RS. 7,00,000/- WAS GIVEN DURING THE YEA R. DURING THE PERIOD UNDER CONSIDERATION THE CONSTRUCTION OF COLLEGE BUILDING AT JABALPUR WAS UNDERTAKEN CONSTRUCTION FO R WHICH SOME ADVANCES WERE GIVEN. THE ASSESSEE HAS GIVEN ADVANCE OF RS. 27,00,000/- T O VARIOUS CONCERNS DURING A.Y 2009-10, AS DETAILED BELOW: ADVANCE TO UPKAR CONSTRUCTION CO P LTD RS. 7, 00,0 00/- ADVANCE TO H.S. BAGGA RS. 5, 00,000/- ADVANCE FOR SITE DEVELOPMENT RS. 15, 00,000/- IN THIS REGARDS THE ASSESSEE HAS TO SUBMIT AS UNDER : UPKAR CONSTRUCTION CO P LTD. RS. 7,00,000/- THE ASSESSEE SOCIETY HAS GIVEN AN ADVANCE FOR CONST RUCTION TO THE SAID COMPANY AND AS SUCH IT HAS NOT MADE ANY LE NDING TO ANY CONCERN AND HENCE PROVISIONS OF SECTION 13(2) ( A) HAS NO APPLICABILITY TO THE CASE OF THE ASSESSEE. FURTHER IT MAY BE MENTIONED THAT THE ASSESSEE SOCIE TY HAS RECEIVED UNSECURED LOAN FROM MR. G.S.KEER OUT OF WH ICH RS. 9,70,000/- WERE OUTSTANDING AS ON 31.3.2009. SHRI. G.S. KEER IS THE MANAGING DIRECTOR AND SUBSTANTIAL SHARE HOLDER OF UPKAR CONSTRUCTION CO P LTD. THE ADVANCE OF RS.7 LAKH WAS GIVEN AGAINST THE SECURITY OF THIS UNSECURED LOAN AND AS THE LOAN RISHIRAJ K.M.B EDUCATION SOCIETY 7 RECEIVED FROM HIM WAS INTEREST FREE, AS SUCH NO INT EREST WAS CHARGED ON THIS ACCOUNT. ADVANCE TO H.S.BAGGA RS. 5, 00,000/- THE SAID PERSON IS NOT RELATED TO THE SOCIETY IN AN Y MANNER AND IS NOT COVERED BY THE PROVISIONS OF SECTION 13(3). THE SAID ADVANCE WAS GIVEN FOR PURCHASE OF OFFICE PREMISES F OR THE ASSESSEE SOCIETY AT M.P NAGAR. IT MAY BE MENTIONED THAT THE ASSESSEE HAS ALREADY RECEIVED THE POSSESSION OF THE SAID OFFICE. HOWEVER THE BALANCE PAYMENT AND THE REGISTRY HAS NO T BEEN DONE DUE TO SOME PENDING LEGAL DISPUTES IN REGARDS TO THE BUILDING IN WHICH THE SAID OFFICE IS SITUATED. ADVANCE FOR SITE DEVELOPMENT RS. 15,00,000/- THE ASSESSEE SOCIETY WAS CONSTRUCTING A COLLEGE BUI LDING AT JABALPUR. ADVANCES WERE PAID TO MR. MOHD RAFIQ, JAG DISH PUREHRA AND SURAJ PUREHARA WHO WERE CONTRACTORS AT THE SITE, AND PENDING RECEIPT/ FINALIZATION OF THE CONSTRUCTI ON BILLS WERE DEBITED TO ADVANCE FOR SITE DEVELOPMENT. COPY OF LE DGER ACCOUNT IS ENCLOSED. IT MAY BE MENTIONED THAT NONE OF THE ABOVE PERSONS ARE RELATED TO THE SOCIETY OR ITS OFFICE BE ARERS IN ANY MANNER AND AS SUCH THE SAID ADVANCES ARE NOT COVERE D BY THE PROVISIONS OF SECTION 13(3) OF THE ACT. THUS ALL THE ABOVE ADVANCES WERE GIVEN FOR THE ACHI EVING THE OBJECTS OF THE SOCIETY AND WERE LARGELY GIVEN AS AD VANCES TO UNRELATED PARTIES. ADVANCE IN ONE CASE GIVEN TO A R ELATED PARTY WAS ALSO WELL SECURED AND WITHOUT ANY FINANCIAL LOS S TO THE SOCIETY. THUS IT CANNOT BE SAID THAT THE ASSESSEE BY GIVING OF THE ABOVE ADVANCES HAS PASSED ON ANY BENEFITS TO ANY OF THE P ERSONS COVERED U/S13(3). IT MAY FURTHER BE MENTIONED THAT EVEN IF IT IS PRES UMED THAT THE SOCIETY HAS GIVEN ADVANCE TO RELATED PARTIES, THE S AID DEFAULTS WOULD NOT RESULT IN THE DENYING OF EXEMPTION U/S 12 AA FOR THE RELEVANT YEAR. HOWEVER SUCH DEFAULT CANNOT RESULT I N CANCELLATION OF THE REGISTRATION U/S 12AA. THE SECOND OBJECTION BY THE LD. A.O WAS THAT A SUM OF RS.1,00,00,000/- RECEIVED AS A CORPUS DONATION HAS BEEN CREDITED TO THE CORPUS FUND IN THE BALANCE SHEET AN D HAS NOT BEEN ROUTED THROUGH INCOME & EXPENDITURE A/C. IT WA S SUBMITTED BEFORE THE LD. A.O THAT THE RECEIPT OF DO NATION IS TO RISHIRAJ K.M.B EDUCATION SOCIETY 8 THE CORPUS FUND AND UNDER THE LAW IS NOT INCLUDABLE AS AN INCOME OF THE TRUST. THE LD. A.O FURTHER REMARKED T HAT THE DONATIONS RECEIVED ARE FOR THE CONSIDERATION FOR LE AVING THE MANAGEMENT IN THE OTHER TRUST OF CHOUKSEY GROUP. TH E LD. A.O HAS DRAWN ATTENTION TO PAGE NO.52 OF LPS 29 WHICH I S A HAND WRITTEN MEMORANDUM STATING THAT CHOUKSEY GROUP WILL PAY TO THE VARIOUS INSTITUTIONS A SUM OF RS.17 CRORES. THE LD. A.O FURTHER STATED THAT THE PAYMENT OF RS.1 CRORE HAS B EEN MADE BY CHOUKSEY GROUP TO THE ASSESSEE SOCIETY WITHOUT MENT IONING THE SPECIFIC PURPOSE. FURTHER THE OTHER PAYMENTS HAVE B EEN MADE TO THE SOCIETIES CONTROLLED BY THE KEER GROUP. THE LD. A.O OBSERVED THAT MR. T.S KEER DID NOT ATTEND IN POST SEARCH INQ UIRES SINCE HE WAS UNDER THE MEDICAL TREATMENT FOR CANCER, HOWEVER SHRI. G.S KEER, OTHER TRUSTEE ATTENDED BEFORE THE DEPARTMENT AND CLEARLY STATED THAT THESE PAYMENTS WERE MADE TO THE SOCIETI ES AS CORPUS DONATIONS. THE LD. A.O FURTHER REMARKED THAT THE EXPLANATIONS GIVEN BY THE ASSESSEE IS VAGUE AND GEN ERAL AND NO DOCUMENTARY EVIDENCE WAS PRODUCED. HE ULTIMATELY CONCLUDED THAT ALL THESE PAYMENTS TO THE ASSESSEE T RUST ARE A PART OF THE DEAL EXECUTED FOR THE SALE BETWEEN CHOU KSEY GROUP AND KEER GROUP. IT WAS SUBMITTED BEFORE THE LD. A.O THAT ALL THESE PAYMENTS HAVE BEEN RECEIVED THROUGH BANKING CHANNEL AND MAJO RITY OF THE PAYMENTS HAVE BEEN RECEIVED BY THE TRUST. THE A SSESSEE SOCIETY HAS RECEIVED THE CORPUS DONATIONS AND HAS N OT GIVEN ANY PAYMENT TO THE CONNECTED PERSONS MENTIONED U/S 13. ALL THE RECEIPTS HAVE BEEN UTILIZED FOR THE OBJECT OF T HE TRUST AND THERE IS NO INFRINGEMENT OF ANY OF THE PROVISIONS O F SECTION 11 TO 13. A TRUST CAN ALWAYS RECEIVE DONATION FOR THE OBJ ECTS OF THE TRUST AND IT WOULD BE SEEN THAT ALL AMOUNTS RECEIVE D HAVE BEEN UTILIZED FOR THE OBJECTS OF THE TRUST. THE LD. A.O. FURTHER IN PARA 14 MENTIONED THAT THE ASSESSEE HAS RECEIVED LOANS FROM VARIOUS PERSONS. ALL THE CR EDITORS ARE INCOME TAX ASSESSEES AND HAVE SUBSTANTIAL CAPITAL AND SUBSTANTIAL INCOME. THE REMARK THAT UNEXPLAINED CRE DITS ARE NOT PROVED IS TOTALLY CONTRARY TO THE EVIDENCE ON RECOR D. IN ANY CASE THE LOANS HAVE BEEN UTILIZED FOR THE OBJECTS OF THE TRUST AND THERE IS NO INFRINGEMENT OF ANY OF THE PROVISIONS O F THE INCOME TAX LAW. RISHIRAJ K.M.B EDUCATION SOCIETY 9 SUBMISSIONS OF THE ASSESSEE:- THE ASSESSEE IS A CHARITABLE SOCIETY FORMED FOR DOI NG THE ACTIVITY OF EDUCATION. THE OBJECTS OF THE ASSESSEE SOCIETY ARE PURELY CHARITABLE AND THERE IS NO DISTRIBUTION OF A NY PROFIT TO ANYONE. THE SOCIETY HAS BEEN GRANTED REGISTRATION U/S 12A/12AA BY THE LD. CIT AFTER SCRUTINIZING THE ACCO UNTS AND VERIFYING THE OBJECTS OF THE SOCIETY. THERE IS NO C HANGE IN THE OBJECT CLAUSE SINCE THE INCEPTION. THE SOCIETY HAS NOT INFRINGED ANY OF THE PROVISIONS OF SECTION 11 TO 13. THE FUND S INCLUDING THE BORROWED FUNDS HAVE BEEN UTILIZED FOR THE OBJEC TS OF THE TRUST. THE TRUST HAS NOT GIVEN ANY ADVANCE IN CONTR AVENTION TO PROVISION OF SECTION 13. THE ADVANCES HAVE BEEN GIV EN FOR THE CONSTRUCTION OF THE PROPERTY TO THE UNRELATED PERSO N EXCEPT IN THE CASE OF UPKAR CONSTRUCTION PVT LTD IN WHICH ONE OF THE OFFICE BEARER IS A DIRECTOR. HOWEVER THE SOCIETY HAS SUBST ANTIAL CREDIT BALANCE IN THE ACCOUNT OF THE DIRECTOR. EVEN THIS F UND HAS BEEN ADVANCED FOR THE BUILDING CONSTRUCTION. THUS THERE IS NO INFRINGEMENT OF ANY OF THE PROVISIONS OF SECTION 11 TO 13. THE ARRANGEMENT BETWEEN THE MEMBERS OF THE SOCIETY FOR MANAGEMENT IS NOT ADVERSE TO THE CHARITABLE OBJECT AND IT IS BETWEEN THE MEMBERS AND NOT BETWEEN THE ASSESSEE SO CIETIES. THE ASSESSEE SOCIETY HAS RECEIVED DONATIONS TO THE CORPUS FUND AND HAS NOT DISTRIBUTED ANY FUND TO ANYBODY. IT HAS UTILIZED ALL THE FUNDS FOR THE CHARITABLE OBJECTS OF THE SOCIETY . THUS THE CONCLUSION DRAWN BY THE LD. A.O AND THE LD. CIT ABO UT THE GENUINENESS OF THE ACTIVITY ARE PERVERSE AND CONTRA RY TO THE FACT ON RECORD. THE REJECTION OF THE REGISTRATION IS THU S BAD IN LAW AND WITHOUT JURISDICTION. IT IS FURTHER SUBMITTED THAT SUB SECTION 4 TO SECTI ON 12AA WAS INTRODUCED W.E.F 01/10/2014 FOR CANCELLATION OF THE REGISTRATION IF IT IS NOTICED THAT THE ACTIVITY OF TRUST ARE NOT BEING CARRIED OUT IN THE MANNER THAT THE PROVISION OF SECTION 11 AND 12 DO NOT APPLY TO EXCLUDE THE INCOME OF THE INSTITUTION DUE TO OPERATION OF SUB SECTION 1 OF SECTION 13. THIS IS NOT RETROSPECT IVE PROVISION. SUBSECTION 3 OF SECTION 12AA AS IT STOOD ON 01/10/2 004 PROVIDED THE POWER OF CANCELLATION OF REGISTRATION ON TWO CONDITIONS I.E. THE ACTIVITY OF THE TRUST IS NOT GE NUINE OR ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST. IT IS SUBMITTED THAT NONE OF THESE TWO CONDITIONS ARE SAT ISFIED, THE RISHIRAJ K.M.B EDUCATION SOCIETY 10 SOCIETY IS GENUINELY CARRYING OUT THE EDUCATIONAL A CTIVITIES AS PER THE OBJECTS OF THE SOCIETY. THUS THE LD. CIT HA S NO POWER TO CANCEL THE REGISTRATION UNDER SUB SECTION 3 OF SECT ION 12AA. THE LD. CIT ON THE BASIS OF THE PAPERS AND IDENTICA L FACTS HAD CANCELLED THE REGISTRATION OF 5 CONNECTED TRUSTS WH ICH ARE LISTED ABOVE. THE REJECTION WAS CHALLENGE BEFORE THE HONB LE TRIBUNAL. THE HONBLE TRIBUNAL VIDE ITS ORDER DATED 17/05/201 6 IN ITA NO. 386 TO 390 HAS CANCELLED THE ORDER OF THE LD. C IT AND ALLOWED THE REGISTRATION. IN PARA 15 TO 19 THE HON BLE TRIBUNAL DISCUSSED THE PROVISION OF SECTION 12AA AND THE POW ERS OF THE LD. CIT ABOUT THE CANCELLATION OF REGISTRATION AND IN PARA 20 THE HONBLE TRIBUNAL OBSERVED AS UNDER. WE, RESPECTFULLY, FOLLOWING THE ABOVE DECISIONS, AN D ON THE BASIS OF CBDT CIRCULAR ARE OF THE VIEW THAT IN THE PRESENT CASE, CIT HAD NO POWERS TO CANCEL THE REGISTRATION, HENCE WE ALLOW THE APPEAL OF THE ASSESSEE AND HOLD THAT CIT HAD UN LAWFULLY CANCEL THE REGISTRATION. HENCE, WE ALLOW THE APPEAL ON THIS GROUND. IN PARA 21 THE HONBLE TRIBUNAL DISCUSSED ABOUT THE TRANSAC TION OF 17 CRORE AND HELD THAT THE PAYMENT HAVE BEEN MAD E THROUGH CHEQUE DUE TO DISPUTE AMONG THE OFFICE BEARERS TO C ONTINUE TO RUN THE CHARITABLE ENTITIES WHERE 100 OF STUDENTS A RE BEING IMPARTED EDUCATION. IT IS IMPORTANT TO NOTE THAT TH E PAYMENTS WERE NOT MADE TO ANY INDIVIDUAL OFFICE BEARER. AT P AGE 67 THE HONBLE TRIBUNAL CONCLUDED IN VIEW OF THE ABOVE, I N OUR OPINION IT CANNOT BE SAID THAT THE ACTIVITIES OF THE ASSESS EE ARE NOT CHARITABLE OR NOT GENUINE OR ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECT OF THE ASSESSEE SOCIETY. IF THERE IS ANY CONTRAVENTION OF SECTION 11 AND 13 IT IS TOO BE CONSIDERED BY THE A.O AT THE STAGE OF THE ASSESSMENT. THE REGI STRATION OF THE INSTITUTION U/S 12A CANNOT BE CANCELLED. THE H ONBLE TRIBUNAL DISCUSSED MANY CASES ON THIS POINT FROM PA GE 68 TO PAGE 76 AND HELD THAT THE CANCELLATION OF REGISTRAT ION IS NOT JUSTIFIED. WE RELY ON ALL THE CASE LAWS MENTIONED I N THE SAID ORDER. IT IS HUMBLY SUBMITTED THAT ALL THE REGISTRATIONS O F VARIOUS SOCIETIES WERE CANCELLED ON THE SAME FACTS AND AT T HE SAME TIME. THE REGISTRATION OF THE OTHER SOCIETIES MANAG ED BY THE OTHER GROUP WHO HAVE PAID THE MONIES HAS BEEN RESTO RED BY THE RISHIRAJ K.M.B EDUCATION SOCIETY 11 HONBLE TRIBUNAL. THUS IT IS HUMBLY PRAYED THAT THE CANCELLATION OF THE REGISTRATION IN THE PRESENT CASE BE SET ASID E AND THE TRUST BE GRANTED THE REGISTRATION. 6. THE LD. COUNSEL FOR THE ASSESSEE FURTHER SUBMITTE D THAT UNDER THE IDENTICAL FACTS AND CONNECTED TRUST, THE MATT ER REGARDING CANCELLATION OF REGISTRATION REACHED UP TO THE STAGE OF THE TRIBUNAL IN ITANO.386 TO 390/IND/2014 VI DE ORDER DATED 17.05.2016 HAD QUASHED THE ORDER OF THE L D. CIT. THE LD. COUNSEL ALSO PLACED RELIANCE ON THE JUDG MENT OF HON'BLE MADRAS HIGH COURT RENDERED IN THE CASE OF C IT VS. WORKING WOMEN FORUM 365 ITR 353 (MAD.), JUDGMENT OF HON'BLE SUPREME COURT IN THE CASE OF DIRECTOR OF INCOME TAX CHENNAI VS. WORKING WOMEN FORUM 235 TAXMAN 516(SC). CIT VS. ORPAT CHARITABLE TRUST 230 TAXMAN 66 GUJARAT, KESHAV MADHAV DHAM TRUST VS. CIT HISAR 41 ITR 77 (DEL. T), MOHD. YONUS KHAN VS. UOI (SC), INCOME TAX VS. VIRENDRA SINGH MEMORIAL 35 SOT (LUC.), PRAKASH CHAND NAHTA VS. CIT JABALPUR 170 TAXMAN 520 (MP). HE SUBMITTED THAT IN THE LIGHT OF THE ABOVE DECISIONS TH E LD. CIT(A) OUGHT NOT TO HAVE CANCEL THE REGISTRATION. 7. PER CONTRA LD. DR OPPOSED THE SUBMISSIONS AND SUPPORTED THE ORDER OF THE LD. CIT(A). HE SUBMITTED THAT THE LAW IS CLEAR REGISTRATION GRANTED U/S 12AA CAN BE RISHIRAJ K.M.B EDUCATION SOCIETY 12 CANCELLED IF IT IS FOUND THAT THE ASSESSEE SOCIETY HAD VIOLATED THE TERMS FOR REGISTRATION AND THE PROVISIONS OF LAW. HE SUBMITTED IN THE PRESENT CASE THERE IS A FINDING O F THE LD. CIT(A) THAT THE ASSESSEE TRUST HAD VIOLATED THE PROVISIONS OF SECTION 11 & 12 OF THE ACT. HE SUBMIT TED THAT THE ADVANCES HAVE BEEN MADE TO THE RELATED PARTIES, WITHOUT CHARGING ANY INTEREST. UNDER THESE FACTS HE SUBMITTED THAT THE CASE LAWS AS RELIED BY THE LD. COUN SEL FOR THE ASSESSEE ARE NOT APPLICABLE. 8. WE HAVE HEARD THE RIVAL CONTENTION PERUSED THE MATE RIAL AVAILABLE ON RECORDS. THE ASSESSEE SOCIETY WAS REGISTER ED ON 24.10.2007 WITH FOLLOWING OBJECTIVES: 1. , , , - !' , #$ , #%& '() , * +! , ,# -./ 0 1 , 2 34 1 '() +25 6 ) 1 ! ! 7 ' ,#894 1 , 82:* 1 !;< 1 , 34 1 , =!: ,!: 1 , ! , > ? -./ 0 1 , . 1 ? > @( 8 -./ 0 > @( 9A B ? 8 C 2-)? #89 1 DA 7! 7! B +? +* EFG H 6 'C H :: 6 'C +! . I 2. 2J.K # EJ. '?* 6?5LM* '? 8;9N4 @O 7! . + B * ' Q 7! , /% M +'? / +'?#83 BR ? , +0 @(K 2-)? ! ! 7 ' ! K H ST # . 8 2 :* #89 5U ! ? ,: I RISHIRAJ K.M.B EDUCATION SOCIETY 13 3. 6 , > V:W , , > ? 6 4K ? 6%X , 2Y , =) , Q 7 C/ D Q ? ? 6 , H 2K ,S@? ! K ! S! , :T Z 6 , H :: , H B 6 'C +! I 4. [%L+* , @ , Q -2-) , 0&? @) ? 6 ! K H :: ? # ' Q , ,#894 1 7! ?/ S H \) Z B I 5. ' Q , ? 6 , R+0 ' > ? ?@-)K B B +0 Q 45 ] %&?K H =-5 :: , _? , ?!@( ' #8 ,: =R: I 6. #89 ' > ? ,. # / ?2B , A- `A =R: D 2 I 7. !8 ? 2 , 8 - A9K ? C # -./ 0 ,: I FURTHER THE ASSESSEE SOCIETY WAS GRANTED REGISTRATION U /S 12A VIDE ORDER DATED 28.03.2008. THE CONDITIONS THER EOF WERE AS UNDER: IT IS CLARIFIED THAT THIS CERTIFICATE DOES NOT ENT ITLE THE SOCIETY AUTOMATICALLY TO THE EXEMPTION OF INCOME OF THE SOCIETY U/S 11 & 12 OF THE I.T. ACT AND THAT THE ASSESSING OFFICER SHALL BE FREE TO DECIDE SUCH CLAI M OF EXEMPTION OF INCOME OF THE SOCIETY U/S 11 & 12 AFTE R SATISFYING HIMSELF THAT THE CONDITIONS AND REQUIREM ENTS LAID DOWN IN THESE SECTION ARE FULFILLED BY THE SOC IETY. 9. FROM THE ABOVE, IT IS CLEAR THAT IN THE EVENT OF ANY VIOLATION OF THE PROVISION OF SECTIONS 11 & 12 OF TH E ACT, THE REGISTRATION GRANTED WAS SUBJECT TO CANCELLATION. THE BASIS OF CANCELLATION OF REGISTRATION IN THIS CASE IS THAT THE ASSESSING OFFICER FOUND THAT THE ASSESSEE SOCIET Y RISHIRAJ K.M.B EDUCATION SOCIETY 14 HAVING VIOLATED THE PROVISIONS OF SECTIONS 11 & 12 OF THE ACT. FOR THE SAKE OF CLARITY SECTION 11 & 12 OF THE A CT ARE REPRODUCED AS UNDER: INCOME FROM PROPERTY HELD FOR CHARITABLE OR RELIGIO US PURPOSES 11(1) SUBJECT TO THE PROVISIONS OF SECTIONS 60 TO 6 3, THE FOLLOWING INCOME SHALL NOT BE INCLUDED IN THE TOTAL INCOME OF THE PREVIOUS YEAR OF THE PERSON IN RECEIPT OF THE INCOME- (A) INCOME DERIVED FROM PROPERTY HELD UNDER TRUST WHOLL Y FOR CHARITABLE OR RELIGIOUS PURPOSES, TO THE EXTENT TO WHICH SUCH INCOME IS APPLIED TO SUCH PURPOSES IN INDIA; AND, W HERE ANY SUCH INCOME IS ACCUMULATED OR SET APART FOR APPLICA TION TO SUCH PURPOSES IN INDIA, TO THE EXTENT TO WHICH THE INCOM E SO ACCUMULATED OR SET APART IS NOT IN EXCESS OF TWENTY - FIVE PERCENT OF THE INCOME FROM SUCH PROPERTY; (B) INCOME DERIVED FROM PROPERTY HELD UNDER TRUST IN PA RT ONLY FOR SUCH PURPOSES, THE TRUST HAVING BEEN CREATED BEFORE THE COMMENCEMENT OF THIS ACT, TO THE EXTENT TO WHICH SU CH INCOME IS APPLIED TO SUCH PURPOSES IN INDIA; AND, WHERE AN Y SUCH INCOME IS FINALLY SET APART FOR APPLICATION TO SUCH PURPOSES IN INDIA, TO THE EXTENT TO WHICH THE INCOME SO SET APA RT IS NOT IN EXCESS OF TWENTY FIVE PERCENT OF THE INCOME FROM SU CH PROPERTY; (C) INCOME DERIVED FROM PROPERTY HELD UNDER TRUST- (I) CREATED ON OR AFTER THE 1ST DAY OF APRIL, 1952 , FOR A CHARITABLE PURPOSE WHICH TENDS TO PROMOTE INTERNATI ONAL WELFARE IN WHICH INDIA IS INTERESTED, TO THE EXTENT TO WHICH SUCH INCOME IS APPLIED TO SUCH PURPOSES OUTSIDE IND IA, AND (II)FOR CHARITABLE OR RELIGIOUS PURPOSES, CREATED B EFORE THE 1ST DAY OF APRIL, 1952 , TO THE EXTENT TO WHICH SUCH IN COME IS APPLIED TO SUCH PURPOSES OUTSIDE INDIA: PROVIDED TH AT THE BOARD, BY GENERAL OR SPECIAL ORDER, HAS DIRECTED IN EITHER CASE THAT IT SHALL NOT BE INCLUDED IN THE TOTAL INCOME O F THE PERSON IN RECEIPT OF SUCH INCOME; RISHIRAJ K.M.B EDUCATION SOCIETY 15 (D) INCOME IN THE FORM OF VOLUNTARY CONTRIBUTIONS MADE WITH A SPECIFIC DIRECTION THAT THEY SHALL FORM PART OF THE CORPUS OF THE TRUST OR INSTITUTION.] EXPLANATION FOR THE PURPOSES OF CLAUSES (A) AND ( B)- (1) IN COMPUTING THE {FIFTEEN} PER CENT OF THE ICOME WH ICH MAY BE ACCUMULATED OR SET APART, ANY SUCH VOLUNTARY CONTRI BUTIONS AS ARE REFERRED TO IN SECTION 12 SHALL BE DEEMED TO BE PART OF THE INCOME; (2) IF, IN THE PREVIOUS YEAR, THE INCOME APPLIED TO CHA RITABLE OR RELIGIOUS PURPOSES IN INDIA FALLS SHORT OF {EIGHTY- FIVE} PER CENT OF THE INCOME DERIVED DURING THAT YEAR FROM PROPERTY H ELD UNDER TRUST, OR AS THE CASE MAY BE, HELD UNDER TRUST IN P ART, BY ANY AMOUNT- (I) FOR THE REASON THAT THE WHOLE OR ANY PART OF THE IN COME HAS NOT BEEN RECEIVED DURING THAT YEAR, OR (II) FOR ANY OTHER REASON THEN- (A) IN THE CASE REFERRED TO IN SUB-CLAUSE(I), SO MUCH O F THE INCOME APPLIED TO SUCH PURPOSES IN INDIA DURING THE PREVIOUS YEAR IN WHICH THE INCOME IS RECEIVED OR DU RING THE PREVIOUS YEAR IMMEDIATELY FOLLOWING AS DOES NOT EXCEED THE SAID AMOUNT AND (B) IN THE CASE REFERRED TO IN SUB-CLAUSE(II) SO MUCH O F THE INCOME APPLIED TO SUCH PURPOSES IN INDIA DURING THE PREVIOUS YEAR IMMEDIATELY FOLLOWING THE PREVIOUS YE AR IN WHICH THE INCOME WAS DERIVED AS DOES NOT EXCEED THE SAID AMOUNT. INCOME OF TRUSTS OR INSTITUTIONS FROM CONTRIBUTIONS 12 (1). ANY VOLUNTARY CONTRIBUTIONS RECEIVED BY A TRUS T CREATED WHOLLY FOR CHARITABLE OR RELIGIOUS PURPOSES OR BY AN INSTI TUTION ESTABLISHED WHOLLY FOR SUCH PURPOSES (NOT BEING CONTRIBUTIONS M ADE WITH A SPECIFIC DIRECTION THAT THEY SHALL FORM PART OF THE CORPUS OF THE TRUST OR INSTITUTION) SHALL FOR THE PURPOSES OF SECTION 1 1 BE DEEMED TO BE INCOME DERIVED FROM PROPERTY HELD UNDER TRUST WHOLL Y FOR RISHIRAJ K.M.B EDUCATION SOCIETY 16 CHARITABLE OR RELIGIOUS PURPOSES AND THE PROVISIONS OF THAT SECTION AND SECTION 13 SHALL APPLY ACCORDINGLY.] (2) THE VALUE OF ANY SERVICES, BEING MEDICAL OR EDU CATIONAL SERVICES, MADE AVAILABLE BY ANY CHARITABLE OR RELIG IOUS TRUST RUNNING A HOSPITAL OR MEDICAL INSTITUTION OR AN EDU CATIONAL INSTITUTION, TO ANY PERSON REFERRED TO IN CLAUSE(A) OR CLAUSE(B) OR CLAUSE (C) OR CLAUSE (CC) OR CLAUSE(D) OR SUB-SECTI ON (3) OF SECTION13, SHALL BE DEEMED TO BE INCOME OF SUCH TRUST OR INSTI TUTION DERIVED FROM PROPERTY HELD UNDER TRUST WHOLLY FOR CHARITABL E OR RELIGIOUS PURPOSES DURING THE PREVIOUS YEAR IN WHICH SUCH SER VICES ARE SO PROVIDED AND SHALL BE CHARGEABLE TO INCOME TAX NOTW ITHSTANDING THE PROVISIONS OF SUB-SECTION (1) OF SECTION 11.] EXPLANATION- FOR THE PURPOSES OF THIS SUB-SECTION, THE EXPRESSION VALUE SHALL BE THE VALUE OF ANY BENEFIT OR FACILI TY GRANTED OR PROVIDED FREE OF COST OR AT CONCESSIONAL RATE TO AN Y PERSON PREFERRED TO IN CLAUSE(A) OR CLAUSE(B) OR CLAUSE (C ) OR CLAUSE (CC) OR CLAUSE(D) OR SUB-SECTION (3) OF SECTION 13.] 3. NOTWITHSTANDING ANYTHING CONTAINED IN SECTION 11 , AMOUNT OF DONATION RECEIVED BY THE TRUST OR INSTITUTION IN TE RMS OF CLAUSE(D) OF SUB-SECTION (2) OF SECTION 80G { IN RESPECT OF WHIC H ACCOUNTS OF INCOME AND EXPENDITURE HAVE NOT BEEN RENDERED TO TH E AUTHORITY PRESCRIBED UNDER CLAUSE(V) OF SUB-SECTION (5C) OF T HAT SECTION, IN THE MANNER SPECIFIED IN THAT CLAUSE, OR] WHICH HAS BEEN UTILIZED FOR PURPOSES OTHER THAN PROVIDING RELIEF TO THE VICTIMS OF EARTHQUAKE IN GUJARAT OR WHICH REMAINS UNUTILIZED IN TERMS OF SUB -SECTION (5C) OF SECTION 80G AND NOT TRANSFERRED TO THE PRIME MINIST ERS NATIONAL RELIEF FUND ON OR BEFORE THE 31 ST DAY OF MARCH, [2004] SHALL BE DEEMED TO BE THE INCOME OF THE PREVIOUS YEAR AND SH ALL ACCORDINGLY BE CHARGED TO TAX. 10. NOW, WE NEED TO FIND OUT WHETHER THE ASSESSEE HAD VIOLATED ANY OF THE AFORESAID PROVISIONS. THE GROUNDS F OR CANCELLATION OF REVENUE IN SHORT IS THAT THE ASSESSEE S OCIETY ENTERED INTO VARIOUS AGREEMENTS WITH SHRI JAI NARAIN CHOUKSEY GROUP FOR TRANSFER OF CONTROL OF RISHIRAJ RISHIRAJ K.M.B EDUCATION SOCIETY 17 MEMORIAL SOCIETY AND SUCH OTHER INSTITUTIONS. IT IS NOTEWORTHY THAT THE REGISTRATION U/S 12AA OF THE ACT MAKES THE ASSESSEE SOCIETY IS ELIGIBLE FOR BENEFIT OF EXEM PTION PROVIDED U/S 11 & 12 OF THE ACT IN TERMS OF SECTION 12A. HOWEVER, THE COMMISSIONER IS EMPOWERED U/S 12(3) OF THE ACT IF HE SATISFIED THAT THE ACTIVITIES OF SUCH TRUST OR INSTITUTION ARE NOT GENUINE OR ARE NOT BEING CARRIED O UT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST OR INSTITUTI ON, AS THE CASE MAY BE. 11. LD. COUNSEL FOR THE ASSESSEE VEHEMENTLY ARGUED TH AT ON THE BASIS OF CANCELLATION OF REGISTRATION STATED BY THE LD. CIT(A) IS THAT THE ASSESSEE SOCIETY HAS VIOLATED THE PROVISIONS OF SECTIONS 11 & 13 OF THE ACT. HE SUBM ITTED THAT THE AMENDMENT BROUGHT OUT IN THE ACT BY INSERTIN G SECTION 12(4) OF THE ACT IS NOT APPLICABLE IN THE YE AR UNDER APPEAL. HE, THEREFORE, SUBMITTED THAT THE IMPUGNED ORD ER MAY BE QUASHED. WE ARE UNABLE TO ACCEPT THIS ARGUMENT OF THE LD. COUNSEL FOR THE ASSESSEE. WE HAVE GONE THROUG H THE OBJECTS OF THE SOCIETY, PROVISIONS OF THE ACT. IN T HE PRESENT CASE THE ASSESSEE HAS NOT DEMONSTRATED THAT DURING THE YEAR UNDER APPEAL IT HAS CARRIED ITS ACTIVITIES IN ACCORDAN CE WITH THE OBJECTS OF THE SOCIETY. IT IS ON RECORD TH AT THE ASSESSEE SOCIETY HAS ACCEPTED THE DONATION OF RS.1 CROR E RISHIRAJ K.M.B EDUCATION SOCIETY 18 WITHOUT SPECIFYING THE OBJECTS. FURTHER CERTAIN ADVANC ES HAVE BEEN GIVEN TO THE RELATED PERSONS WITHOUT CHARGIN G INTEREST. THE ASSESSEE HAS NOT BROUGHT ANY MATERIAL ON RECORD SUGGESTING THAT IT HAS CARRIED OUT OTHER ACTIVIT IES AS MANDATED BY THE OBJECTS OF THE ASSESSEE SOCIETY. UNDER THESE FACTS, WE ARE UNABLE TO INTERFERE IN THE ORDER O F THE LD. CIT(A), SAME IS HEREBY UPHELD. GROUNDS RAISED IN THIS APPEAL ARE DISMISSED. 12. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 21 .08 .2018. SD/- (MANISH BORAD) SD/- (KUL BHARAT) A CCOUNTANT MEMBER JUDICIAL MEMBER INDORE; R: DATED : 21/ 08/2018 CTX? P.S/. . . COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER PRIVATE SECRETARY/DDO, INDORE