Bikaner Medical & Educational Society, BIKANER V. CIT, BIKANER

ITA 68/JODH/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1596 (ITAT-JODHPUR)
• Duration Of Justice: 1 year(s) 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 08-01-2013
• Assessment Year: misc
• Appeal Filed On: 04-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBHASH CHANDRA
• Keywords: Charitable institution; Opportunity of being heard; Corroborative evidences
• Section: 80G; 12A; 12AA; 12

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K.SAINI, ACCOUNTANT MEMBER ITA NO. 69/JU/2011 (U/S 12AA) MARUDHAR MEDICAL & EDUCATION SOCIETY, VS. THE CIT , BIKANER BIKANER PAN NO. AABAM0048G & ITA NO. 68/JU/2011 (U/S 12AA) BIKANER MEDICAL & EDUCATION SOCIETY, VS. THE CIT, BIKANER BIKANER PAN NO. AABTB3681K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MAHESH GEHLOT RESPONDENT BY : SHRI SUBHASH CHANDRA DATE OF HEARING : 08.01.2013 DATE OF PRONOUNCEMENT : 14.02.2013 ORDER PER N.K.SAINI, A.M. THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGAI NST THE ORDERS DATED 17.1.2011 AND 23.12.2010 RESPECTIVELY OF CIT, BIKANER. 2 2. IDENTICAL ISSUE IS INVOLVED IN BOTH THESE APPEAL S AND THE FACTS ARE SIMILAR. MOREOVER, THE APPEALS HAVING IDENTICAL GR OUNDS WERE HEARD TOGETHER, SO, THESE ARE BEING DISPOSED OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 3. FIRST, WE WILL DEAL WITH ITA NO. 69/JU/2011. 4. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEA L. 1. THAT THE ORDER PASSED BY THE CIT (ADM.), BIKANER U/S 12 AA IS BAD IN LAW AND ON FACTS. 2. THAT CIT HAS ERRED IN FACTS AND LAW IN MAKING VA RIOUS OBSERVATIONS WHICH ARE INCORRECT AND NOT RELEVANT F OR GRANTING REGISTRATION U/S 12A IN THE FACTS AND CIRC UMSTANCES OF THE CASE. THEREFORE, THE ORDER PASSED BY THE CIT U/S 12AA IS REQUESTED TO BE REVERSED. 3. THAT THE APPELLANT PRAYS FOR JUSTICE AND MAY PLE ASE BE ALLOWED TO ADD, AMEND, DELETE FURTHER/ ANY GROUNDS OF APPEAL ON OR BEFORE HEARING ON THE CASE. 5. FROM THE ABOVE GROUND, IT IS GATHERED THAT THE O NLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL RELATES TO THE REJECTION OF APPLICATION MOVED BY THE ASSESSEE U/S 12A OF THE INCOME TAX ACT, 1961 [HEREI NAFTER REFERRED TO AS 'THE ACT' IN SHORT]. 6. THE FACTS OF THE CASE IN BRIEF ARE THAT THE ASSE SSEE SOCIETY FILED AN APPLICATION FOR SEEKING REGISTRATION U/S 12A OF THE ACT ON 6.7.2010. THE 3 LEARNED CIT(A) CALLED THE REPORT FROM THE ASSESSING OFFICER WITH REGARD TO THE GENUINENESS OF THE TRUST. THE ASSESSING OFFICER REPORTED AS UNDER;- ' IT IS A NEW SOCIETY REGISTERED ON 18.12.2007 WITH THE PARTICULAR MOTIVE TO PROVIDE EDUCATION FACILITIES A ND RESEARCH IN MEDICAL AREA. ON EXAMINATION IT WAS FOU ND THAT THE ASSESSEE SOCIETY IS RUNNING A POLYTECHNIC COLLE GE AT NOKHA NAMELY BRIGHT CAREER POLYTECHNIC COLLEGE WHILE AS P ER CONSTITUTION THEY HAVE TO WORK MAINLY IN MEDICAL LI NE. FURTHER THE ASSESSEE SOCIETY WAS REQUIRED TO FILE CERTAIN INFORMATION/DETAILS OF VIDE LETTER DATED 20.08.2010 AS GIVEN BELOW:- I) BRIEF NOTE REGARDING WORK DONE BY YOU FORM 18.12. 2007 TO TILL TODAY. II) BOOKS OF ACCOUNT MAINTAINED ALONG WITH DONATION R ECEIPT BOOK. III) BOOKS OF ACCOUNTS MAINTAINED HEAD WISE AS WELL AS BRANCH WISE REGARDING VARIOUS EXPENSES DEBITED TO P & L ACCOUNT. IV) COPY OF LAST THREE YEARS RETURNS AS WELL AS AUDIT REPORT FOR THE A.Y. 2008-09 TO 2010-11. V) COPY OF BANK STATEMENT OF OBC FROM OPENING OF BANK ACCOUNT TILL TODAY. IN COMPLIANCE OF THE ABOVE LETTER THE AR. OF THE AS SESSEE FILED WRITTEN REPLY DATED 06.09.2010 BUT NEITHER BO OKS OF ACCOUNT NOR COPY OF RETURNS AND BANK ACCOUNTS WERE FURNISHED. THEN AGAIN A LETTER BEARING NO. 1225 DAT ED 8.9.2010 WAS SENT TO THE ASSESSEE SOCIETY FOR SUBMI SSION OF 4 REMAINING INFORMATION ON13.9.2010 BUT ALL IN VAIN. HENCE IN THE ABSENCE OF BOOKS OF ACCOUNTS AND OTHER SUBSIDIA RY BOOKS OF ACCOUNTS ALONG WITH SUPPORTING EVIDENCE, COPY OF RETURN, BANK ACCOUNTS ETC. IT IS NOT POSSIBLE TO VERIFY THE GENUINENESS OF THE SOCIETY. CONSIDERING THE REPEATED NON COMPL IANCE OF THE ASSESSEE SOCIETY THIS IS NOT A FIT CASE FOR REG ISTRATION U/.S 12A(A) OF IT ACT, 1961. 7. THE JCIT, RANGE-2 BIKANER VIDE LETTER NO. 784 DA TED 15.12.2010 HAD ALSO NOT RECOMMENDED THIS CASE AS FIT FOR REGISTRAT ION U/S 12A OF THE ACT AND EXEMPTION U/S 80G OF THE ACT. THE LEARNED CIT(A) O BSERVED THAT IN THE ABSENCE OF BOOKS OF ACCOUNT, NAMES AND ADDRESSES OF THE DONORS, JUSTIFICATION OF THE CHARITABLE ACTIVITIES OF THE T RUST, BILLS AND VOUCHERS OF EXPENSES, AUDIT REPORT AND INCOME TAX RETURN, NECES SARY VERIFICATION REGARDING EXPENSES INCURRED FOR CHARITABLE PURPOSES BY THE SOCIETY COULD NOT BE VERIFIED. ACCORDING TO HIM, THE ASSESSEE SOCIET Y FAILED TO PROVE THAT IT HAD CARRIED OUT ANY ACTIVITY OF CHARITABLE NATURE B Y ITSELF OR FINANCED ANY INSTITUTION. HE FURTHER OBSERVED THAT THE ASSESSEE HAD BEEN GIVEN SUFFICIENT OPPORTUNITY OF BEING HEARD BUT IT HAD NOT RESPONDED , THEREFORE, IT COULD NOT BE SAID THAT FOR ACHIEVING THE OBJECTS MENTIONED IN THE CONSTITUTION OF THE SOCIETY, IT HAD CARRIED OUT CHARITABLE ACTIVITIES. THE LEARNED CIT(A) OPINED THAT THE ASSESSEE TRUST WAS NOT GENUINE AND IT ALS O FAILED TO ABIDE BY THE TERMS AND CONDITIONS LAID DOWN IN THE TRUST DEED. HE ACCORDINGLY REJECTED THE APPLICATION FOR REGISTRATION SOUGHT FOR U/S 12 AA OF THE ACT. NOW, THE ASSESSEE IS IN APPEAL. 5 8. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT WHILE GRANTING THE REGISTRATION U/S 12A OF THE ACT, THE LEARNED C IT IS ONLY SUPPOSED TO SEE THAT THE OBJECTS SOUGHT TO BE ACHIEVED BY A PARTICU LAR TRUST/SOCIETY ARE CHARITABLE IN NATURE OR NOT AND NOT BEYOND THAT. I T WAS STATED THAT THE ASSESSEE SOCIETY IS REGISTERED UNDER THE RAJASTHAN SOCIETIES REGISTRATION ACT AND THE COPIES OF THE CONSTITUTION ALONG WITH FINAN CIAL STATEMENTS HAD BEEN PLACED ON REVENUES FILE, THEN HOW THE LEARNED CIT COULD HELD THAT SOCIETY WAS NOT GENUINE. THEREFORE, FINDINGS OF THE LEARNE D CIT WAS DE-HORS THE MATERIAL AVAILABLE WITH HIM. IT WAS STATED THAT UN DER RAJASTHAN SOCIETIES REGISTRATION ACT, 1958 ONLY THE SOCIETIES RUNNING F OR PUBLIC CHARITABLE PURPOSES CAN BE REGISTERED AND BY VIRTUE OF THE PRO VISIONS OF THIS ACT ON DISSOLUTION ALL OF ITS ASSETS SHALL GO TO THE SOCIE TY HAVING SIMILAR OBJECTIVES AND REGISTERED UNDER THE SAID ACT. IT WAS STATED T HAT THE ASSESSEE IS RUNNING A POLYTECHNIC COLLEGE BY NAME BRIGHT CAREER POLYTEC HNIC COLLEGE AT BIKANER DISTRICT AND IMPARTING EDUCATION TO THE STU DENTS IRRESPECTIVE OF THEIR CASTE, CREED OR RELIGION WITH NO PROFIT MOTIV E AND THE COLLEGE IS APPROVED BY ALL INDIA COUNCIL FOR TECHNICAL EDUCATI ON FUNCTIONING UNDER THE MINISTRY OF HRD, GOVT. OF INDIA. IT WAS STATE D THAT THE ASSESSEE ALONG WITH APPLICATION SEEKING REGISTRATION U/S 12A HAD F ILED COPY OF CONSTITUTION AND AUDITED SET OF FINANCIAL STATEMENTS FOR THE ASS ESSMENT YEARS 2007-08 AND 2008-09 FROM WHICH IT IS OBVIOUS THAT THE ASSES SEE IS RUNNING A POLYTECHNIC COLLEGE AND IMPARTING EDUCATION. IT WAS VEHEMENTLY ARGUED THAT BY VIRTUE OF THE PROVISIONS CONTAINED U/S 12A OF TH E ACT, THE LEARNED CIT 6 HAS GOT NO JURISDICTION TO GO BEYOND WHAT APPEARS F ROM THE DOCUMENTS FURNISHED BEFORE HIM AND HIS DUTY IS ONLY TO SEE TH E CONSTITUTION AND OBJECTIVES SOUGHT TO BE ACHIEVED BY THE SOCIETY AND NOT TO GO BEYOND THAT. IT WAS STATED THAT ON GOING THROUGH THE FINANCIAL S TATEMENTS, EVEN A LAYMAN CAN UNDERSTAND THAT THE SOCIETY IS CARRYING OUT THE ACTIVITY OF RUNNING OF POLYTECHNIC COLLEGE, THEN HOW AND IN WHAT CIRCUMSTA NCES THE LEARNED CIT(A) HAS COME TO THE CONCLUSION THAT ASSESSEE SOC IETY HAS FAILED TO PROVE THE ACTIVITIES CARRIED OUT BY IT, IS DIFFICULT TO U NDERSTAND. IT WAS FURTHER STATED THAT THE SOCIETY WAS REGISTERED UNDER THE RA JASTHAN SOCIETIES REGISTRATION ACT, 1958 THEN HOW THE LEARNED CIT(A) COULD HELD THAT THE TRUST WAS NOT GENUINE. IT WAS FURTHER SUBMITTED TH AT THE GOVT. WANTS HELP OF THE PRIVATE SECTOR TO ENTER INTO THIS EDUCATION LINE BECAUSE THE GOVERNMENT DOES NOT HAVE SUFFICIENT FUNDS TO IMPART EDUCATION FROM ITS OWN EFFORTS AND, THEREFORE, THE SECTOR HAS BEEN OPENED BY GIVING CONCESSIONS TO THE PRIVATE SECTOR IN ORDER TO ACHIEVE THE AVOWED O BJECTIVES OF THE CONSTITUTION TO IMPART EDUCATION TO EVERY CITIZEN O F INDIA. IT WAS EMPHASISED THAT THE ASSESSEE IS RUNNING POLYTECHNIC COLLEGE IN BIKANER DISTRICT AND IMPARTING EDUCATION TO STUDENTS AND HA S GIVEN EMPLOYMENT TO SEVERAL PARSONS, WITHOUT HAVING ANY MOTIVE TO EARN PROFIT WHICH IS MERELY AN INCIDENTAL HAPPENING. IT WAS ALSO EMPHASIZED THA T THE ASSESSEE SOCIETY IS REGISTERED UNDER THE RAJASTHAN SOCIETIES REGISTRATI ON ACT UNDER WHICH ONLY SOCIETIES FORMED FOR PUBLIC BENEVOLENT AND PHILANTH ROPIC OBJECTIVES CAN BE REGISTERED AND REGULAR INSPECTION OF REGISTRAR OF S OCIETIES IS CARRIED OUT AND THE SURPLUS IF ANY GENERATES INCIDENTALLY CANNOT BE DISTRIBUTED BUT HAS TO BE SPENT ON THE ACTIVITIES OF THE SOCIETY. IT WAS STAT ED THAT THE ASSESSEE IS 7 REGULARLY ASSESSED TO TAX AND THE FINANCIAL STATEME NTS UP TO DATE HAD ALREADY BEEN FILED ALONG WITH INCOME TAX RETURN FROM TIME T O TIME. THEREFORE, THE ORDER PASSED BY THE LEARNED CIT(A) U/S 12AA OF THE ACT WAS AGAINST THE PROVISIONS OF LAW, INVALID AND WITHOUT ANY JURISDIC TION. IT WAS STATED THAT AS PER PROVISIONS OF SECTION 2(15) OF THE ACT, THE CHARITABLE PURPOSE INCLUDES RELIEF OF POOR, EDUCATION, MEDICAL RELIEF, AND ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. RELIANCE WAS PLACED ON THE FOLLOWING CASE LAW:- NEW NOBLE EDUCATIONAL SOCIETY VS. CHIEF CIT (2011) 201 TAXMAN 33 (CIT) IT WAS POINTED OUT THAT THE ASSESSING OFFICER AND T HE LEARNED CIT (ADMN.) CALLED FOR BOOKS, DOCUMENTS, AUDIT REPORT, COPY OF RETURN FILED AND COMPUTATION OF INCOME, THE ASSESSEE PRESENTED THE S AME BEFORE THE SAID AUTHORITIES BUT THE SAID AUTHORITIES NEVER CONSIDER ED THESE DOCUMENTS AND ALSO NOT CONSIDERED THE FACTS AND CIRCUMSTANCES WHI LE REJECTING THE APPLICATION OF THE ASSESSEE SOCIETY FOR REGISTRATIO N U/S 12AA OF THE ACT. IT WAS CONTENDED THAT THE OBJECTS OF THE ASSESSEE ARE TO ESTABLISH AND RUN ALL TYPES OF EDUCATIONAL INSTITUTIONS, TO PROVIDE HELP TO DESERVING STUDENTS, TO ESTABLISH LIBRARIES AND READING ROOMS, TO PUBLISH B OOKS, TO ARRANGE LECTURES, TO ESTABLISH HOSTELS FOR STUDENTS, WORKING WOMEN AN D OTHERS AND TO ESTABLISH AND RUN ALL TYPES OF RESEARCH PROJECTS CONCERNING E DUCATION, THEREFORE, IT CANNOT BE DENIED THAT THE OBJECTS OF THE SOCIETY A RE FOR THE FURTHERANCE OF THE EDUCATION WHICH IS A CHARTABLE PURPOSE WITHIN T HE MEANING OF SECTION 2(15) OF THE ACT. THE RELIANCE WAS PLACED ON THE F OLLOWING CASE LAWS:- 8 A) CIT, BHATINDA VS BABA DEEP SINGH EDUCATIONAL SOCIET Y (2012) 21 TAXMAN 38(P&H) B) ANJUMAN-E-KHYRKHAH-E-ALAM VS. DIRECTOR OF INCOME-TA X (EXEMPTIONS) {2011] 16 TAXMAN 270(CHENNAI) C) RELIABLE EDUCATIONAL ALLIANCE SOCIETY VS. CIT [2009 ] 126 TTJ 407 (DELHI) D) CIT VS. RED ROSE SCHOOL [212 CTR\ (ALL) 394] E) CIT VS. ST. MARYS MALANKARA SEMINARY 348 ITR 69 (K ER) F) NEW NOBLE EDUCATIONAL SOCIETY VS. CHIEF CIT (2011) 201 TAXMAN 33 (AP ) 9. THE LEARNED COUNSEL FOR THE ASSESSEE CONTENDED THAT IN THE TRUST DEED OF THE ASSESSEE, IT HAD BEEN SPECIFICALLY PROVIDED THAT THE FUNDS AND INCOME OF THE TRUST WOULD BE SOLELY UTILISED TOWARDS THE O BJECT OF THE TRUST AND NO PORTION OF IT WOULD BE UTILISED FOR PAYMENT TO TRUS TEES AND IT WAS ALSO PROVED THEREIN THAT AT THE TIME OF DISSOLUTION, NO FUNDS WOULD BE DISTRIBUTED TO THE TRUSTEES BUT WOULD BE TRANSFERRED TO ANOTHER CHARITABLE TRUST AND THERE WAS NO ADVERSE REPORT AGAINST THE GENUINENESS OF TH E ACTIVITIES OF THE ASSESSEE-TRUST POINTED OUT EITHER BY THE ASSESSING OFFICER OR BY THE ADDITIONAL CIT(A). THEREFORE, THE CONDITIONS FOR GR ANTING REGISTRATION OF TRUST U/S 12A OF THE ACT WERE SATISFIED. IT WAS FUR THER STATED THAT BY THE AMENDMENT BY FINANCE ACT 2008, A PROVISO HAD BEEN A DDED TO SECTION 2(15) WHICH STATES THAT ADVANCEMENT OF ANY OTHER OBJECT O F GENERAL PUBLIC UTILITIES SHALL NOT BE A CHARITABLE PURPOSE, IF IT INVOLVE A CARRYING ON OF (I) ANY ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINE SS ; OR (II) ANY ACTIVITY OF RENDERING ANY SERVICE IN RELATION TO ANY TRADE, COM MERCE OR BUSINESS. 9 HOWEVER, THE NEWLY INSERTED PROVISO TO SECTION 2(15 ) WILL NOT APPLY IN RESPECT OF THE RELIEF OF THE POOR, EDUCATION OR MED ICAL RELIEF, THEREFORE, EVEN IF A TRUST OR INSTITUTION ENGAGED IN THE RELIEF OF THE POOR, EDUCATION OR MEDICAL RELIEF AND INCIDENTALLY CARRYING ON OF COMM ERCIAL ACTIVITIES, IT WILL CONSTITUTE CHARITABLE PURPOSE. IT WAS ACCORDINGLY SUBMITTED THAT THE LEARNED CIT WAS NOT JUSTIFIED IN REJECTING THE APPLICATION U/S 12A OF THE ACT. ACCORDINGLY, IT WAS REQUESTED THAT REGISTRATION U/S 12A OF THE ACT MAY BE GRANTED TO THE ASSESSEE SOCIETY. 10. IN HIS RIVAL SUBMISSIONS, THE LEARNED DR STRONG LY SUPPORTED THE IMPUGNED ORDER OF LEARNED CIT(A). 11. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIALS AVAILABLE ON RECORD. IN THE PRESENT CASE, IT IS AN ADMITTED FACT THAT THE ASSESSEE IS REGISTERED UNDER THE RAJASTHAN SOCIETIES REGISTRATION ACT, 1958 W.E.F. 18.12.2007, COPY OF THE SAID CERTIFICATE IS PLACED AT PAGE 22 OF THE ASSESSEES COMPILATION. T HE ASSESSEE FURNISHED THE RETURN OF INCOME BEFORE THE DEPARTMENT AND COPI ES OF THE SAME WERE CLAIMED TO HAVE BEEN FURNISHED BEFORE THE LEARNED CIT. THE ASSESSEE SOCIETY IS RUNNING POLYTECHNIC COLLEGE IN BIKANER D ISTRICT IMPARTING EDUCATION TO THE STUDENTS IRRESPECTIVE OF THEIR CAS TE, CREED OR RELIGION AND ALSO PROVIDING SCHOLARSHIP TO THE POOR AND NEEDY ST UDENTS. THE DETAIL IS AVAILABLE AT PAGE NO.4 OF THE ASSESSEES COMPILATIO N, WHICH READS AS UNDER:- 10 POST METRIC SCHOLARSHIP(CATEGORY WISE) YEAR CATEGARY (NO OF STUDENTS) SCHOLARSHIP AMOUNT O.B.C ST SC B.P.L 2009-2010 87 23 45 NIL 3043600 2010-2011 24 33 41 29 2586200 TOTAL 111 56 86 29 5629800 POST METRIC SCHOLARSHIP(BRANCHES WISE) YEAR BRANCH JMO OF STUDENTS SCHOLARSHIP AMOUNT 2010-2011 MECHANICAL 16 248400 2010-2011 ELECTRONIC 22 348500 2010-2011 CIVIL 13 187000 2010-2011 ELECTRICAL 44 645200 2010-2011 INFORMATION TECHNOLOGY 9 158000 TOTAL 104 1587100 12. IN THE PRESENT CASE, IT IS AN ADMITTED FACT THA T THE ASSESSEE IS IMPARTING EDUCATION TO THE STUDENTS AND IS RUNNING POLYTECHNIC COLLEGE UNDER THE NAME BRIGHT CAREER POLYTECHNIC COLLEGE. I T IS WELL ESTABLISHED THAT FOR GRANTING THE REGISTRATION U/S 12A OF THE A CT, THE APPLICATION FOR REGISTRATION IS TO BE MADE IN THE PRESCRIBED FORM A ND IN THE PRESCRIBED MANNER. THE ASSESSEE MOVED THE APPLICATION IN THE P RESCRIBED MANNER BEFORE THE LEARNED COMMISSIONER OF INCOME TAX. THE ASSESSEE IS ENGAGED IN IMPARTING EDUCATION BY RUNNING A POLYTECHNIC COLLEG E AND AS PER THE PROVISIONS CONTAINED IN SECTION 2(15) OF THE INCOME TAX ACT, CHARITABLE PURPOSE INCLUDES THE EDUCATION. THE HON'BLE ALLAHA BAD HIGH COURT IN THE 11 CASE OF CIT VS RED ROSE SCHOOL 212 CTR (ALL) 394 (S UPRA) HELD THAT WHILE CONSIDERING THE APPLICATION OF A TRUST OR INSTITUTI ON FOR REGISTRATION U/S 12AA OF THE ACT, THE COMMISSIONER IS REQUIRED ONLY TO SEE THAT ACTIVITIES OF THE SAID SOCIETY / TRUST ARE GENUINE AND ARE IN CON SONANCE OF ITS OBJECTS AND THAT SECTION 12AA DOES NOT SPEAK ANYWHERE THAT COMMISSIONER WHILE CONSIDERING THE APPLICATIONS FOR REGISTRATION SHALL ALSO SEE THAT INCOME DERIVED BY THE TRUST OR INSTITUTION IS EITHER NOT B EING SPENT FOR CHARITABLE PURPOSES OR SUCH INSTITUTION IS EARNING PROFIT. IN THE PRESENT CASE, THE ASSESSEE IS RUNNING A POLYTECHNIC COLLEGE IMPARTING EDUCATIONAL FACILITIES TO THE PUBLIC AND THIS FACT HAS BEEN ACCEPTED BY THE L EARNED CIT AT PAGE 1 OF THE IMPUGNED ORDER, REFEREED THE REPORT OF THE ASS ESSING OFFICER WHEREIN IT IS MENTIONED AS UNDER:- IT IS NEW SOCIETY REGISTERED ON 18.12.2007 WITH TH E PARTICULAR MOTIVE TO PROVIDE EDUCATION FACILITIES RESEARCH ON MEDICAL AREA. ON EXAMINATION, IT WAS FOUND THAT THE ASSESS EE SOCIETY IS RUNNING A POLYTECHNIC COLLEGE AT NOKHA. 13. IN THE PRESENT CASE, THE LEARNED CIT REJECTED T HE APPLICATION OF THE ASSESSEE BY OBSERVING THAT THE ASSESSEES TRUST FAI LED TO PROVE THAT IT HAD CARRIED OUT ANY ACTIVITY OF CHARITABLE NATURE BY IT SELF OR EVEN FOR CHARITABLE INSTITUTION. ON THE CONTRARY, THE FACTS ARE THAT T HE ASSESSEE SOCIETY IS REGISTERED WITH THE REGISTRAR OF SOCIETIES, RAJASTH AN UNDER THE RAJASTHAN SOCIETIES REGISTRATION ACT, 1958 AND RUNNING A POLY TECHNIC COLLEGE FOR PROVIDING TECHNICAL EDUCATION TO THE STUDENTS IRRES PECTIVE OF THEIR CASTE, CREED OR RELIGION. IMPARTING OF EDUCATION IS A CHA RITABLE ACTIVITY AS PER 12 PROVISIONS CONTAINED IN SECTION 2(15) OF THE ACT. T HEREFORE, THE ASSESSEE WAS ELIGIBLE FOR REGISTRATION US/ 12A OF THE ACT. 14. ON A SIMILAR ISSUE, THE HON'BLE PUNJAB & HARYAN A HIGH COURT IN THE CASE OF CIT VS. BABA DEEP SINGH EDUCATIONAL SOCIETY , (2012) 21 TAXMAN 38 (P&H) COPY OF WHICH IS PLACED AT PAGE NO.121 TO 123 OF THE ASSESSEE,S PAPER BOOK) HELD AS UNDER:- IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES, IT W OULD BE CLEAR THAT THE ASSESSEE-SOCIETY WAS ADMITTEDLY RUNN ING A POLYTECHNIC COLLEGE AND ITS ACTIVITIES WERE INTERWO VEN FOR FURTHERING THE PROJECTS ACTIVITIES PERTAINING TO ED UCATION. THEREFORE, THE TRIBUNAL RIGHTLY DIRECTED THAT REGIS TRATION SHOULD BE GRANTED TO THE ASSESSEE-SOCIETY WITH THE RIDER THAT THE SAME COULD ALWAYS BE CANCELLED IF IT CAME TO TH E NOTICE OF THE COMMISSIONER THAT THE SOCIETY WAS NOT CARRYING ON THE ACTIVITIES AS PER ITS OBJECTS. THE COMMISSIONER, W HILE PROCESSING THE APPLICATION U/S 12AA, IS NOT TO ACT AS AN ASSESSING AUTHORITY AND, THUS, THE TRIBUNAL HAS RIG HTLY ALLOWED THE APPEAL FILED BY THE SOCIETY IN THE FACTS AND CI RCUMSTANCES OF THE INSTANT CASE. 15. WE, THEREFORE, IN VIEW OF THE RATIO LAID DOWN B Y THE HON'BLE PUNJAB & HARYANA HIGH COURT IN THE AFORESAID REFERRED TO CA SE, DIRECT THE LEARNED CIT TO GRANT REGISTRATION US/ 12A OF THE ACT TO THE ASSESSEE SOCIETY. 15. IN ITA NO. 68/JODH/2011, THE FACTS ARE SIMILAR AND EVEN THE RIVAL CONTENTIONS WERE SIMILAR, THEREFORE, OUR FINDINGS G IVEN IN THE FORMER PART 13 OF THIS ORDER IN RESPECT OF ITA NO. 69/JU/2011 SHAL L APPLY MUTATIS- MUTANDIS. IN THAT VIEW OF THE MATTER WE DIRECT THE LEARNED CIT TO GRANT REGISTRATION U/S 12A OF THE ACT TO THE ASSESSEES. 16. IN THE RESULT, BOTH THE APPEALS ARE ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 14.02.2013 ) SD/- SD/- (HARI OM MARATHA) (N.K.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMER DATED : 14 TH FEBRUARY, 2013 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSISTANT REGISTRAR