M/s Sanskar Shiksha Samiti, Sonepat V. CIT (E), Chandigarh

ITA 5135/DEL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3015 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: misc
• Appeal Filed On: 29-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARAMITA TRIPATHY
• Section: 12A; 12AA; 12; 10

Judgement Text

1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F : NEW DELHI BEFORE SHRI SUDHANSHU SRIVASTAVA , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 513 5 /DEL/2016 A Y --- APPEAL AGAINST ORDER U/S 12 AA OF THE ACT SANSKAR SHIK SHA SAMITI, LITTLE GEMS PUBLIC SCHOOL, VPO KATWAL, THE. GOHANA, SONEPAT PAN AA HAS 7160B VS CIT ( EXEMPTIONS) CHANDIGARH (APPELLANT) (RESPONDENT) APPELLANT BY : SH. TARUN ROHTAGI, CA RESPONDENT BY: MS. PARAMITA TRIPATHY, CIT (DR) DATE OF HEARING 09/01/2018 DATE OF PRONOUNCEMENT 1 9 /03/2018 O R D E R PER PRASHANT MAHARISHI, ACCOUNTANT MEMBER 1 . THIS APPEAL IS FILED BY ASSESSEE , AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (EXEMPTION), CHANDIGARH D ATED 2 30 / 07 / 2016 PASSED UNDER SECTION 12AA OF THE INCOME TAX ACT DENYING REGISTRATION TO THE APPARENT. 2 . THE ASSESSEE HAS RAISED F OLLOWING SEVEN GROUNDS OF APPEAL : - I . THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED COMMISSIONER OF INCOME TAX WAS NOT JUSTIFIED IN REJECTING THE GR ANT OF REGISTRATION U/S 12A OF THE INCOME TAX ACT, 1961. II . THAT THE LEARNED COMMISSIONER OF INCOME TAX HAVING HELD THAT THE SOLE OBJECT OF THE SOCIETY IS TO IMPART EDUCATION AS DEFINED IN SECTION 2(15) OF THE ACT OUGHT TO HAVE ALLOWED REGISTRATION U/S 12AA . III . WHETHER THE LEARNED COMMISSIONER OF INCOME TAX WAS WITHIN HIS POWERS TO DENY THE REGISTRATION U/S 12AA ON THE GROUND THAT THE APPELLANT OUGHT TO HAVE ITSELF REGISTERED U/S 10(23 C ) (VI) INSTEAD OF MAKING APPLICATION U/S 12AA. IV . THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LEARNED COMMISSIONER OF INCOME TAX HAS ERRED IN LAW IN APPLYING THE RIGHT TO EDUCATION ACT TO DENY THE REGISTRATION U/S 12A . V . THAT THE FINDING RECORDED BY THE LEARNED COMMISSIONER THAT THE TRANSPORTATION CHARGES ARE ' AS LARGE AS ANNUAL CHARGES' IS CONTRARY TO THE MATERIAL ON RECORD AND THE INFERENCE DRAWN IS PATENTLY ERRONEOUS . VI . THAT THE SALARY OF TEACHERS OF AN EDUCATIONAL INSTITUTION CANNOT BE A GROUND TO DENY REGISTRATION U/S 12A . VII . THAT IN VIEW OF THE MATERIAL PLACE D ON RECORD REGARDING 3 GENUINENESS OF THE ACTIVITIES OF THE TRUST AND OF ITS OBJECTS , THE LEARNED COMMISSIONER OUGHT TO HAVE GRANTED REGISTRATION U/S 12A R/W SECTION 1 2 AA OF THE ACT. VIII . THAT THE APPELLANT CRAVES FOR LEAVE TO ADD, ALTER, MODIFY ANY OF THE R OUNDS OF APPEAL MENTIONED ABOVE AT THE TIME OF HEARING. 3 . THE ASSESSEE IS CARRYING ON THE OBJECT OF EDUCATION RUNNING SCHOOL, COLLEGE, COMPUTER CENTERS, TUITION CENTRES ETC. IT MADE AN APPLICATION IN FORM NO.10 A ON 13.01.2016. THE LD. CIT (E) EXAMINED THE OBJECT OF THE TRUST GENUINESS OF THE ACTIVITIES . HE HELD THAT AS A SOLE OBJECT OF THE SOCIETY IS FOR PROVIDING AND THEREFORE, IT SHOULD APPLY FOR REGISTRATION U/S 10 (23 C) OF THE ACT. HE FURTHER NOTED THAT THE ASSESSEE IS INSTEAD OF USING F UNDS FOR EDUCATIONAL ACTIVITIES IS PURCHASING VEHICLES. HE FURTHER HELD THAT TRANSPORTATION CHARGES BEING EARNED BY THE SOCIETY ARE AS LARGE AS ANNUAL CHARGES FROM THE STUDENTS. HE FURTHER STATED THAT SALARY AND FEE STRUCTURE IS ALSO LOW. THEREFORE, HE RE JECTED THE APPLICATION OF THE ASSESSEE TRUST. 4 . THE LD. AR SUBMITTED THAT THE OBJECT OF THE TRUST ARE FOR EDUCATION AND THE ACTIVITIES OF THE TRUST ARE GENUINE. HE FURTHER SUBMITTED THAT PURCHASE OF VEHICLE ARE FOR THE PURPOSE OF TRANSPORTATION OF STUDENT S FROM THEIR VILLAGE TO THE SCHOOL. HE FURTHER REFERRED TO THE VARIOUS LETTERS SUBMITTED BEFORE THE LD. CIT (E). 5 . THE LD. DR VEHEMENTLY SUPPORTED THE ORDER OF THE LD. CIT (E). 4 6 . WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS AND ALSO PERUSED THE ORDER OF LD. CIT (E) . THE ASSESSEE TRUST IS CARRYING ON UNDOUBTEDLY THE EDUCATIONAL ACTIVITIES THEREFORE, MERELY BECAUSE IT IS ALSO ELIGIBLE FOR REGISTRATION U/S 10 (23C) OF THE ACT. THE REGISTRATION U/S 12 AA CANNOT BE REJECTED OR DENIED. IT IS FURTHER FACT THAT TRANSPORTATION ACTIVITIES CARRIED ON BY THE ASSESSEE IS FOR THE PURPOSE OF THE STUDEN TS OF THE TRUST. IT WAS FURTHER STATED THAT FEE CONCESSION IS ALSO PROVIDED TO 165 NEEDY AND POOR STUDENTS. FURTHER THE FIXED ASSETS ACQUIRED BY THE ASSESSEE A RE VEHICLES AND BUSES FOR THE TRANSPORTATION TO THE STUDENTS AND STAFF OF THE ASSESSEE. THE AUDIT REPORT SUBMITTED BY THE ASSESSEE SHOWS THAT IT HAS EARNED FEES AND OTHER CHARGES OF RS. 68.64 LACS DURING THE YEAR AND VEHICLE RUNNING EXPENSES ARE ONLY RS. 6,31,529/ - . IN VIEW OF THE ABOVE APPARENT FACTS THE ASSESSEE IS ELIGIBLE FOR REGISTRATION U/S 12 AA OF THE ACT. THE IDENTICAL ISSUE HAS BEEN CONSIDERED BY US IN ITA NO. 5134/DEL/2016 OF EVEN DATE WHEREIN WE HAVE SET ASIDE THE WHOLE ISSUE BACK TO THE FILE OF LD. CIT (E) WITH DIRECTION TO EXAMINE THE WHOLE ISSUE AFRESH AFTER GRANTING OPPORTUNITY OF HEARING TO THE ASSESSEE. 7 . IN VIEW OF THIS WE ALSO SET ASIDE THIS ISSUE BACK TO THE FILE OF LD. CIT (E) WITH SIMILAR DIRECTION. 8 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED . 5 9 . ORDER PRONOUNCED IN THE OPEN COURT ON 1 9 .03.2018 . S D / - S D / - ( SUDHANSHU SRIVASTAVA ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 9 /03/2018 *NEHA* COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI 6