Rajendra Prasad Degree College, Bareilly V. Commissioner of Income Tax (Exemptions), Lucknow

ITA 677/LKW/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7160 (ITAT-LUCKNOW)
• Duration Of Justice: 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 28-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12AA

Judgement Text

I.T.A. NO.677/LKW/2018 ASSESSMENT YEAR:N.A. 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA NO.677/LKW/2018 ASSESSMENT YEAR:N.A. RAJENDRA PRASAD DEGREE COLLEGE MEERGANJ, BAREILLY. PAN:AAALR 0140 A VS. CIT (EXEMPTIONS), LUCKNOW. (APPELLANT) (RESPONDENT) O R D E R PER T. S. KAPOOR, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LEARNED CIT (EXEMPTIONS), LUCKNOW DATED 26/09/2018 PASSED U NDER SECTION 12AA(1)(B)(II) OF THE I.T. ACT. IN THIS APPEAL THE ASSESSEE HAS TAKEN VARIOUS GROUNDS, HOWEVER THE CRUX OF GROUNDS OF APPEAL IS T HE ACTION OF LEARNED CIT (EXEMPTIONS) BY WHICH HE HAS REFUSED REGISTRATION U /S 12AA OF THE ACT. 2. LEARNED A. R., AT THE OUTSET, SUBMITTED THAT ASS ESSEE IS A RUNNING DEGREE COLLEGE AND WAS FORMED THROUGH A SOCIETY WHI CH WAS DULY REGISTERED WITH THE REGISTRAR OF SOCIETIES AND IN THIS RESPECT OUR ATTENTION WAS INVITED TO PAPER BOOK PAGE 3 WHERE THE COPY OF CERTIFICATE OF REGISTRATION WAS PLACED. OUR ATTENTION WAS ALSO INVITED TO PAPER BO OK PAGES 4 TO 10 WHERE COPY OF MEMORANDUM OF ASSOCIATION WAS PLACED WHEREI N THE OBJECT CLAUSE WAS MENTIONED TO BE EDUCATION. OUR ATTENTION WAS F URTHER INVITED TO PAPER APPELLANT BY SHRI P. K. KAPOOR, C. A. RESPONDENT BY SHRI SUSHIL KUMAR MADHUK, CIT (D.R.) DATE OF HEARING 23/07/2019 DATE OF PRONOUNCEMENT 26/07/2019 I.T.A. NO.677/LKW/2018 ASSESSMENT YEAR:N.A. 2 BOOK PAGE 11 WHERE THE NOTE ON ACTIVITIES OF THE AS SESSEE, AS FURNISHED TO CIT (EXEMPTIONS), WAS PLACED. SIMILARLY, WE WERE T AKEN TO PAPER BOOK PAGES 12 TO 53 WHERE COPY OF AUDITED FINANCIAL STAT EMENTS OF THE ASSESSEE WERE PLACED. WE WERE ALSO TAKEN TO PAPER BOOK PAGE S 56 & 57 WHERE THE COPY OF WRITTEN SUBMISSIONS DATED 19/09/2018 WERE P LACED. IN VIEW OF ALL THESE FACTS AND CIRCUMSTANCES AND IN VIEW OF ALL TH E SUBMISSIONS MADE TO CIT (EXEMPTIONS), LEARNED A. R. ARGUED THAT THE FIN DINGS OF LEARNED CIT (EXEMPTIONS) THAT NO MATERIAL HAS BEEN PROVIDED TO HIGHLIGHT THE ACTIVITIES OF THE ASSESSEE WERE WRONG. IT WAS SUBMITTED THAT THE ABOVE DOCUMENTS, AS PLACED IN THE PAPER BOOK, CLEARLY DEMONSTRATE TH AT THE ASSESSEE WAS A RUNNING DEGREE COLLEGE AND THE COPY OF INCOME & EXP ENDITURE ACCOUNT, CLEARLY REFLECT THE RECEIPT OF ADMISSION FEE AND FU RTHER THE NOTES ON ACTIVITIES OF THE ASSESSEE CLEARLY DEMONSTRATE THE NUMBER OF S TUDENTS STUDYING IN VARIOUS COURSES. THEREFORE, IT WAS ARGUED THAT THE ASSESSEE SHOULD HAVE BEEN GIVEN REGISTRATION U/S 12A, AS AT THE TIME OF GRANTING REGISTRATION ONLY THE OBJECTS OF THE ASSESSEE, ALONG WITH THE GENUINE NESS OF THE ACTIVITIES OF THE ASSESSEE, HAVE TO BE EXAMINED. 3. LEARNED D. R., ON THE OTHER HAND, RELIED ON THE ORDER OF LEARNED CIT (EXEMPTIONS). 4. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE TH ROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT IT IS AN UNDISPUTED FACT THAT THE ASSESSEE IS A SOCIETY REGISTERED UNDER THE SOCIETIES ACT. THE MEMORANDUM OF ASSOCIATION, PLACED AT PAPER BOOK PAGES 7 TO 10, CL EARLY DEMONSTRATE THAT THE ASSESSEE WAS ENGAGED IN EDUCATION ACTIVITIES. THE NOTES ON ACTIVITIES OF THE ASSESSEE ALSO DEMONSTRATE THAT A NUMBER OF STUD ENTS, TOTALING 2,736, WERE STUDYING IN THE COLLEGE AND COLLEGE WAS A GOVE RNMENT AIDED COLLEGE. FURTHER WE FIND THAT THE AUDITED ACCOUNTS, FILED BE FORE CIT (EXEMPTIONS), I.T.A. NO.677/LKW/2018 ASSESSMENT YEAR:N.A. 3 CLEARLY DEMONSTRATE THAT THE ASSESSEE HAD RECEIVED FEE ON ACCOUNT OF ADMISSION OF VARIOUS STUDENTS. ALL THESE FACTS HAV E ESCAPED THE ATTENTION OF LEARNED CIT (EXEMPTIONS) AND THE FINDING THAT NO MA TERIAL WAS FILED HIGHLIGHTING THE ACTIVITIES OF THE ASSESSEE, IS CON TRARY TO THE FACTS. THEREFORE, WE DEEM IT APPROPRIATE TO REMIT THE ISSU E BACK TO LEARNED CIT (EXEMPTIONS) WHO SHOULD DECIDE THE ISSUE OF GRANTIN G OF REGISTRATION AFRESH AFTER TAKING INTO ACCOUNT THE VARIOUS DOCUMENTS, WH ICH WERE FILED BEFORE HIM. THE CIT (EXEMPTIONS) SHOULD PASS THE ORDER W ITHIN A PERIOD OF 90 DAYS OF PASSING OF THIS ORDER. NEEDLESS TO SAY, TH E ASSESSEE WILL BE PROVIDED REASONABLE AND SUFFICIENT OPPORTUNITY OF BEING HEAR D. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 26/07/2019) SD/. SD/. ( A. D. JAIN ) ( T. S. KAPOOR ) VICE PRESIDENT ACCOUNTANT MEMBER DATED:26/07/2019 *SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW