School to Lead Foundation, Pune V. Commissioner of Income-Tax (Exemption), Pune

ITA 615/PUN/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 6676 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 29-01-2021
• Assessment Year: misc
• Appeal Filed On: 23-11-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12AA; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUN E (THROUGH VIRTUAL COURT) BEFORE SHRI WASEEM AHMED, AM AND SHRI PARTHA SARATHI CHAUDHURY, JM . / ITA NO.615/PUN/2020 SCHOOL TO LEAD FOUNDATION, ....... / APPELLANT C/O. SAHIL CHAMANLAL PANDITA, 18, LATITUDE, B WING, F.NO.402, S.NO.28/9, NR. KADAMB FARM, PUNEWALA, PUNE. PAN : ABDCS4399H. / V/S. THE COMMISSIONER OF INCOME TAX, (EXEMPTION), PUNE. / RESPONDENT ASSESSEE BY : SHRI PARIN SHAH. REVENUE BY : SHRI DEEPAK GARG. / DATE OF HEARING : 29.01.2021 / DATE OF PRONOUNCEMENT : 29.01.2021 / ORDER PER WASEEM AHMED, AM: THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE (HEREINAFTER RE FERRED AS CIT(E) FOR SHORT) DATED 30.09.2020 PASSED U/S 12AA(1)(B)(II) O F THE INCOME TAX ACT, 1961. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. THE ORDER PASSED BY CIT (EXEMPTION) IS INVALID AND BAD IN LAW AND REQUIRED TO BE QUASHED . 2. LD. CIT (EXEMPTION) ERRED IN LAW AND ON FACTS IN REJECTING APPLICATION IGNORING FACT THAT, THE APPELLANT IS A COMPANY WITH CHARITABLE OBJECTS HAVING LICENSE UNDER SECTION 8 OF COMPANIES ACT, 20 13 WHICH INTER- ALIA 2 STIPULATE THAT, IF THE PROFITS (IF ANY) OR OTHER IN COME WHENSOEVER IS DERIVED, THE SAME SHALL BE APPLIED SOLELY FOR THE PROMOTION OF THE OBJECTS SET-FORTH IN ITS MEMORANDUM OF ASSOCIATION AND THAT NO PORTION T HEREOF SHALL BE PAID OR TRANSFERRED, DIRECTLY OR INDIRECTLY BY WAY OF DIVID END, BONUS OR OTHERWISE BY WAY OF PROFIT TO PERSONS WHO AT ANY TIME ARE OR HAVE BEEN MEMBERS OF THE SAID COMPANY OR TO ANY PERSON CLAIMING THROUGH A NYONE OR MORE OF THEM ; THAT, NO REMUNERATION OR BENEFIT OR OTHER BENEFIT I N MONEY OR MONEY'S WORTH SHALL BE GIVEN BY THE COMPANY TO ANY OF ITS M EMBER; THAT, IF COMPANY CONTRAVENES ANY OF THE REQUIREMENT S OF THE SECTION 8 OF THE ACT OR RULE OR ANY OF THE CONDITIONS SUBJECT TO WHICH LICENSE IS ISSUED OR IF THE AFFAIRS OF THE COMPANY ARE CONDUCTED FRAUDUL ENTLY OR IN A MANNER VIOLATING OF THE OBJECTS OF THE COMPANY OR PREJUDIC IAL TO PUBLIC INTEREST, THE LICENSE SHALL BE LIABLE TO BE REVOKED. COPY OF LICE NSE AND CERTIFICATE OF INCORPORATION ARE ATTACHED. LD. CIT (EXEMPTION) OUG HT TO HAVE CONSIDERED THESE FACTS AND GRANT THE REGISTRATION, IT BE SO HE LD NOW. 3.LD. CIT (EXEMPTION) ERRED IN LAW AND ON FACTS IN REJECTING REGISTRATION BY IGNORING THE DETAILED SUBMISSION MADE BY YOUR APPEL LANT ON 10/08/2020 AND AS SPECIALLY PARA 15 OF THE SAID SUBMISSION WHE REIN REFERENCE IS MADE TO CLAUSE-VIII OF THE MEMORANDUM OF ASSOCIATIO N WHICH PROHIBIT THE COMPANY TO CARRY ON ACTIVITY ON COMMERCIAL BASIS AN D/OR WITH THE MOTIVE OF EARNING PROFITS THERE FROM; ANY INCIDENTAL PROF IT / SURPLUS THAT MAY ARISE FROM ITS ACTIVITIES SHALL BE UTILIZED FOR THE FURTHERANCE OF COMPANY'S CHARITABLE OBJECTS. LD. CIT (EXEMPTION) OUGHT TO HA VE CONSIDERED THE SUBMISSION OF YOUR APPELLANT AND GRANT REGISTRATION . IT BE SO HELD NOW. 4. LD. CIT (EXEMPTION) ERRED IN OBSERVING THE FACT THAT, THE APPELLANT COMPANY HAS CHARITABLE NATURE OF OBJECTS AND IS DES IROUS OF IMPARTING SECULAR EDUCATION. LD. CIT (EXEMPTION) OUGHT TO HAV E GRANTED THE REGISTRATION. IT BE SO HELD NOW. 3. AT THE OUTSET, IT WAS OBSERVED THAT LD.CIT(E) HAS DISMIS SED THE PETITION FILED BY THE ASSESSEE U/S 12AA(1)(B)(II) OF THE ACT BY OBSERVING AS UNDER : THUS, IT IS SEEN THAT THE MAIN OBJECTIVE OF THE CO MPANY IS TO DO BUSINESS / PROFESSION AND NOT FOR ANY CHARITABLE PURPOSE. 4. CONSIDERING THE ABOVE FACTS, I AM NOT SATISFIED ABOUT THE CHARITABLE NATURE OF OBJECTS OF THE TRUST / INSTITUTION AND HE NCE, THE REQUEST FOR GRANT OF REGISTRATION U/S 12AA OF THE INCOME-TAX ACT, 196 1 CANNOT BE ACCEPTED. 4. ON PERUSAL OF THE ABOVE FINDINGS OF THE LD.CIT(E), WE FIND T HAT THE ORDER PASSED BY HIM IS NOT A SPEAKING ORDER. THE PROVISIONS O F SEC.250(6) OF THE ACT REQUIRES TO PASS THE ORDER BASED ON REASONS AND NOT A SPEAKING ORDER. ACCORDINGLY, WE ARE OF THE VIEW THAT THE MATTER NEEDS T O BE ADJUDICATED AFRESH BY THE LD.CIT(E) AFTER POINTING OUT THAT THE OBJECTS OF THE ASSESSEE COMPANY ARE NOT CHARITABLE IN NATURE. WITH THESE DIRECTIONS, WE SE T ASIDE THE ISSUE TO 3 THE FILE OF LD.CIT(E). HENCE, THE GROUNDS OF THE APPEAL OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS THE 29 TH DAY OF JANUARY, 2021 SD/- SD/- (PARTHA SARATHI CHAUDHURY) (WASEEM AHMED) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE; / DATED : 29 TH JANUARY, 2021. YAMINI / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(EXEMPTION), PUNE. 4. THE ADDL/JCIT, EXEMPTION RANGE, PUNE. 5. , , , / DR, ITAT, B BENCH, PUNE. 6. ! / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE.