NEERAJ SHIKSHA PRASHIKSHAN SAMITI, KOTA V. COMMISSIONER OF INCOME TAX (EXEMPTION), JAIPUR

ITA 51/JPR/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3779 (ITAT-JAIPUR)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 15-01-2019
• Court: TRIBUNAL

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S,A JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 51/JP/2019 NEERAJ SHIKSHA PRASHIKSHAN SAMITI E-802, AASHIRWAD ANANDAM, BALAJI MARKET, KOTA. CUKE VS. THE CIT (EXEMPTIONS), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AACAN 4008 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI P.C. PARWAL (C.A.) JKTLO DH VKSJ LS @ REVENUE BY : SHRI VARINDER MEHTA (CIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 14/05/2019 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 16/05/2019 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 28.11.2018 OF THE LD. CIT(E), JAIPUR PASSED U/S 12A A(1)(B)(II) OF THE INCOME TAX ACT, 1961. THE ASSESSEE HAS RAISED FOLL OWING GROUNDS OF APPEAL:- 1. THE LD. CIT(E) HAS ERRED ON FACTS AND IN LAW IN REJECTING THE APPLICATION OF ASSESEE FOR GRANT OF REGISTRATION U/ S 12AA OF INCOME TAX ACT, 1961 BY INCORRECTLY HOLDING THAT ASSESSEE HAS FAILED TO ITA NO. 51/JP/2019 NEERAJ SHIKSHA PRASHIKSHAN SAMIT VS. CIT(E) 2 PRODUCE DETAILS AND DOCUMENTS IN SUPPORT OF ITS CLA IM FOR REGISTRATION. 2. THE APPELLANT CRAVES TO ALTER, AMEND AND MODIFY ANY GROUND OF APPEAL. 3. NECESSARY COST BE AWARDED TO THE ASSESSEE. 2. THE ASSESSEE TRUST WAS CONSTITUTED ON 05.04.1997 WITH MAIN OBJECT OF IMPARTING EDUCATION. THE ASSESSEE FILED A N APPLICATION FOR REGISTRATION U/S 12AA OF THE IT ACT IN FORM NO. 10A ON 31.05.2018. THE LD. CIT(E) VIDE IMPUGNED ORDER HAS REJECTED THE APP LICATION SEEKING REGISTRATION 12AA OF THE ACT MAINLY ON THE GROUND T HAT THE ASSESSEE HAS NOT FILED FINANCIAL ACCOUNTS AS WELL AS ORIGINAL DO CUMENTS FOR VERIFICATION. 3. BEFORE US, THE LD. AR OF THE ASSESSEE HAS SUBMIT TED THAT THE ONLY REASON GIVEN BY THE LD. CIT(E) FOR REFUSING THE REG ISTRATION U/S 12AA IS THAT THE ASSESSEE HAS NOT SUBMITTED THE ORIGINAL DO CUMENTS REGARDING ESTABLISHMENT OF THE TRUST, FINANCIAL STATEMENTS AN D THE DETAILS REGARDING THE ACTIVITIES CARRIED OUT BY IT. THIS IS INCORRECT IN AS MUCH AS ALONG THE APPLICATION IN FORM 10A ITSELF, THE ASSES SEE HAS UPLOADED THE COPY OF THE TRUST DEED, ANNUAL ACCOUNTS AND NOTE ON THE ACTIVITIES OF THE TRUST. FURTHER, VIDE LETTER DATED 15.11.2018 THE AS SESSEE HAS SUBMITTED THE FOLLOWING DOCUMENTS:- ITA NO. 51/JP/2019 NEERAJ SHIKSHA PRASHIKSHAN SAMIT VS. CIT(E) 3 I) CERTIFIED COPY OF ANNUAL ACCOUNTS OF LAST THREE YEARS. II) CERTIFIED COPY OF TRUST DEED WITH THE ORIGINAL FOR VERIFICATION. III) COPY OF RETURN OF INCOME ALONG WITH COMPUTATIO N FOR LAST THREE YEARS. IV) COPY OF LETTER GRANTING AFFILIATION TO CBSE. THE LD. AR HAS SUBMITTED THAT THE LD. CIT(E) HAS AC KNOWLEDGED THIS LETTER IN HIS ORDER BUT WITHOUT ANY BASIS WRONGLY A LLEGED THAT ONLY PART REPLY IS SUBMITTED WHEREIN FINANCIAL ACCOUNTS AND O RIGINAL DOCUMENTS WERE NOT PROVIDED FOR VERIFICATION. EVEN IF FOR THE SAKE OF ARGUMENT IT IS ACCEPTED, THEN ALSO THE LD. CIT(A) SHOULD HAVE BROU GHT THIS FACT TO THE NOTICE OF THE ASSESSEE WHEN HE HAS PASSED THE ORDER ON 28.11.2018. FROM THE ANNUAL ACCOUNTS ITSELF, IT CAN BE NOTED TH AT THE SOLE ACTIVITY OF THE ASSESSEE IS IMPARTING EDUCATION AND IT IS AFFIL IATED WITH CBSE BOARD. THE ASSESSEE HAS BEEN REGULARLY FILING THE RETURN O F INCOME. CONSIDERING THE SAME, WHEN ASSESSEE HAS PROVIDED THE INFORMATIO N CALLED BY THE LD. CIT(E), THE REGISTRATION REFUSED BY HIM IS UNJUSTIF IED. 4. ON THE OTHER HAND, LD. DR HAS SUBMITTED THAT THE LD. CIT(E) HAS SPECIFICALLY POINTED OUT THAT THE ASSESSEE HAS NOT COMPLIED WITH THE NOTICE ISSUED REQUIRING THE ASSESSEE TO SUBMIT DOCUMENTS/EXPLANAT ION ALONG WITH ORIGINAL TRUST DEED AS WELL AS THE FINAN CIAL ACCOUNTS OF THE ITA NO. 51/JP/2019 NEERAJ SHIKSHA PRASHIKSHAN SAMIT VS. CIT(E) 4 ASSESSEE. THUS, FOR WANT OF NECESSARY DETAILS AND D OCUMENTS THE LD. CIT(E) WAS NOT ABLE TO VERIFY THE GENUINENESS OF TH E ACTIVITIES OF THE ASSESSEE TRUST/INSTITUTION. HE HAS RELIED UPON THE IMPUGNED ORDER OF THE LD. CIT(E). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS THE RELEVANT MATERIAL ON RECORD. WE NOTE THAT THE APPLICATION FO R REGISTRATION U/S 12AA OF THE ACT IN FORM NO. 10A WAS FILED BY THE AS SESSEE THROUGH E- FILING AND THE ACKNOWLEDGEMENT OF THE SAME IS NOT I N DISPUTE. AS PER THE ATTACHMENTS UPLOADED WITH THE APPLICATION THE A SSESSEE ATTACHED TRUST DEED, TRUST ACCOUNTS, TRUST CREATION EVIDENCE AND ACTIVITIES NOTE ETC. IN THE PDF FORM. FURTHER, THE ASSESSEE VIDE LE TTER DATED 15.11.2018 ALSO PRODUCED CERTIFIED COPY OF ANNUAL ACCOUNT FOR LAST THREE YEARS, CERTIFIED COPY OF TRUST DEED WITH ORIGINAL FOR VERI FICATION, COPY OF RETURN OF INCOME ALONG WITH COMPUTATION FOR LAST THREE YEA RS AND COPY OF LETTER GRANTING AFFILIATION TO CBSE. ALL THESE DOCUMENTS A RE ALSO PLACED IN THE PAPER BOOK FILED BY THE ASSESSEE. WE FIND THAT AS P ER THE OBJECTS CLAUSE OF THE ASSESSEE TRUST THE FOLLOWING OBJECTS ARE MEN TIONED IN THE SAID CLAUSE:- ITA NO. 51/JP/2019 NEERAJ SHIKSHA PRASHIKSHAN SAMIT VS. CIT(E) 5 FROM THESE OBJECTS OF THE ASSESSEE TRUST IT IS CLEA R THAT THE PRIMARY AND MAIN OBJECT OF THE ASSESSEE IS TO IMPART EDUCATION THROUGH EDUCATION INSTITUTION. THE ASSESSEE IS RUNNING LBS CONVENT SC HOOL WHICH IS ALSO AFFILIATED WITH CBSE VIDE LETTER DATED 04/12.05.201 6. THUS, THE OBJECTS OF THE ASSESSEE TRUST IS CHARITABLE IN NATURE AND T HE LD. CIT(E) HAS ALSO NOT DOUBTED CHARITABLE NATURE OF OBJECTS OF THE ASS ESSEE TRUST. THE ONLY REASONS GIVEN BY THE LD. CIT(E) FOR REJECTING THE A PPLICATION IS NOT SUBMITTING THE ORIGINAL DOCUMENTS AS WELL AS THE FI NANCIAL ACCOUNTS. IT IS ITA NO. 51/JP/2019 NEERAJ SHIKSHA PRASHIKSHAN SAMIT VS. CIT(E) 6 PERTINENT TO NOTE THAT THE LD. CIT(E) HAS MENTIONED THE REPLY OF THE ASSESSEE DATED 15.11.2018 AND WE FIND THAT THE SAID LETTER WAS FILED ALONG WITH CERTIFIED COPY OF REGISTRATION TRUST DEE D, ANNUAL ACCOUNTS FOR 3 YEARS AND COPY OF LETTER GRANTING AFFILIATION TO CBSE. ONCE, THESE DOCUMENTS WERE PRODUCED BY THE ASSESSEE THEN THE OB SERVATION OF THE LD. CIT(E) THAT THE ASSESSEE HAS NOT PRODUCED THE F INANCIAL ACCOUNTS AND ORIGINAL DOCUMENTS FOR VERIFICATION IS CONTRARY TO THE RECORD. SINCE, THE LD. CIT(E) HAS NOT DISPUTED CHARITABLE NATURE O F THE OBJECTS OF THE ASSESSEE TRUST, THEREFORE, TO THAT EXTENT NO FURTHE R VERIFICATION IS REQUIRED. EVEN OTHERWISE, WE FIND THAT THE OBJECTS OF THE ASSESSEE-TRUST ARE CHARITABLE IN NATURE BEING IMPARTING EDUCATION. AS REGARDS THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE TRUST ONCE THE ASSESSEE HAS PRODUCED ALL THE RELEVANT DOCUMENTS THE SAME OU GHT TO HAVE BEEN EXAMINED BY THE LD. CIT(E) TO SATISFY HIMSELF ABOUT THE GENUINENESS OF THE ACTIVITY. SINCE, THE DOCUMENTS WERE ALREADY PRO DUCED BY THE ASSESSEE THEREFORE, WE DIRECT THE LD. CIT(E) TO VER IFY THE GENUINENESS OF THE ACTIVITY OF THE ASSESSEE FROM THE DOCUMENTS PRO DUCED BY THE ASSESSEE AND THEN PASSED A FRESH ORDER ON THE BASIS OF THE VERIFICATION OF THE DOCUMENTS FOR GENUINENESS OF THE ACTIVITY. S INCE, THE OBJECTS OF THE ASSESSEE TRUST ARE NOT IN DISPUTE BEING CHARITA BLE IN NATURE ITA NO. 51/JP/2019 NEERAJ SHIKSHA PRASHIKSHAN SAMIT VS. CIT(E) 7 THEREFORE, IF THE LD. CIT(E) IS SATISFIED ABOUT THE GENUINENESS OF THE ACTIVITY THEN REGISTRATION U/S 12AA OF THE I.T. ACT SHALL GRANTED TO THE ASSESSEE. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PART LY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 16/05/2019. SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 16/05/2019. * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- NEERAJ SHIKSHA PRASHIKSHAN SAMITI, K OTA. 2. IZR;FKHZ@ THE RESPONDENT- CIT(E), JAIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 51/JP/2019} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR