CAREER POINT EDUCATION SOCIETY, Jaipur V. CIT, Kota

ITA 709/JPR/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99560 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 20-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BHATEJA CIT DHK
• Keywords: Opportunity of being heard
• Section: 12A; 12AA

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VH-VKJ-EHUK] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF; D LNL; DS LE{K BEFORE: SHRI T.R.MEENA, AM & SHRI LALIET KUMAR, JM VK;DJ VIHY LA -@ ITA NO. 709/JP/2014 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : ................. M/S CAREER POINT EDUCATION SOCIETY, 122, SHAKTI NAGAR, KOTA. CUKE VS. COMMISSIONER OF INCOME TAX, KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO. AAAAC 7708 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI VIJAY GOYAL (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI O.P. BHATEJA (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 26/11/2015. MN?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 04/12/2015. VKNS'K@ ORDER PER T.R. MEENA, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 08/09/2014 OF THE LEARNED COMMISSIONER OF INCOME TAX , KOTA PASSED U/S 12AA(1)(B(III) OF THE INCOME TAX ACT, 1961 (HEREINAF TER REFERRED AS THE ACT). THE EFFECTIVE GROUNDS OF APPEAL ARE AS UNDER:- 1 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE WORTHY COMMISSIONER OF INCOME TAX, KOTA HAS GROSSLY ERRED IN REJECTING THE APPLICATION IN FORM NO. 10A FILED ON 28/03/2014 FOR SEEKING REGISTRATION UNDER 2 ITA NO. 709/JP/2014 CAREER POINT EDUCATION SOCIETY VS. CIT SECTION 12AA(A) OF THE INCOME TAX ACT, 1961 BY HOLDI NG THAT THE SOCIETY HAS NOT FURNISHED DOCUMENTARY EVID ENCE IN SUPPORT OF THE WORK CARRIED OUT BY IT MORE SO WH EN THE REPORT OF THE LD A.O. SAYS THAT THE SOCIETY HAS COMMENCED THE EDUCATIONAL ACTIVITIES IN FINANCIAL Y EAR 2012-13 AND RECEIPTS AND EXPENDITURES OF THE SOCIET Y WERE RS. 37,60,067/- AND RS. 2,61,23,220/- RESPECTIV ELY. 2 THAT THE ORDER OF THE CIT, KOTA, REJECTING THE APPL ICATION OF ASSESSEE SEEKING REGISTRATION OF SOCIETY U/S 12A A OF INCOME TAX ACT IS ARBITRARY, WHIMSICAL, CAPRICIOUS, PERVERSE AND AGAINST THE LAW AND FACTS OF THE CASE. THE ORDER OF THE CIT, KOTA IN THIS REGARD DESERVES TO BE SET ASIDE AND DIRECTION BE GIVEN FOR GRANT OF REGISTRAT ION TO THE SOCIETY U/S 12AA OF INCOME TAX ACT. 2. BOTH THE GROUNDS OF APPEAL ARE AGAINST NOT GRANT ING REGISTRATION U/S 12A OF THE ACT BY THE LD CIT, KOTA. THE LD CIT OBSERV ED THAT THE APPLICANT HAD FILED AN APPLICATION IN FORM NO. 10A ON 28/03/2 014 SEEKING REGISTRATION U/S 12AA OF THE ACT. THE APPLICANT SOCIETY WAS ESTABL ISHED ON 29/09/1998 BY VIRTUE OF REGISTRATION GRANTED BY THE REGISTRAR SANSTHAN, KOTA DATED 25/09/1998. THE LD CIT HAD CALLED FOR REPORT FROM THE JOINT COMMISSIONER OF INCOME TAX, RANGE-1, KOTA. THE JCIT, RANGE-1, KOTA HAD NOT RECOMMENDED THE CASE FOR REGISTRATION U/S 12AA OF THE ACT. THE F INDINGS OF THE LD JCIT, RANGE-1, KOTA IS AS UNDER:- BL LECU/K ESA VK;DJ VF/KDKJH] OKMZ&12] DKSVK DK S BL DK;KZY; DS I= LA[;K 1003 FNUKAD 14-08-2014 }KJK LKSLK;VH }KJK FIN YS RHU FOR OKKSZ ESA DH XBZ 3 ITA NO. 709/JP/2014 CAREER POINT EDUCATION SOCIETY VS. CIT PSJHVSCY DK;ZDYKIKSA DS CKJS ESA DGK X;K FKKA FU/KK ZJ.K VF/KDKJH US I= LA[;K 509 FNUKAD 19-08-2014 }KJK ;G CRK;K X;K GS FD LKSLK;VH US FORRH; OKZ 2012&13 ESA 'KS{KF.KD DK;Z IZKJEHK FD;K GSA FTLESA MLDS }KJK DQ Y IZKFIR;KA 3760067@& CRKBZ GS ,OA [KPZ :I;S 26123220@& CRK;S GSA FU/KKZJ.K VF/KDK JH DH FJIKSZV O VU; NLRKOST NS[KUS LS ;G EKYWE GKSRK GS FD LKSLK;VH }KJK DKSBZ HKH LK{; IZLRQR UGH FD, X, GSA VR% LKSLK;VH DS EKEYS ESA /KKJK 12,, DS RGR IAT HDJ.K DH VUQ'KALK UGHA DH TKRH GSA AFTER CONSIDERING THE REPORT OF THE JCIT, AGAIN GAVE REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND DISCUSSED THE CA SE WITH THE AUTHORIZED AR OF THE ASSESSEE AND HELD THAT THE SOCIETY FAILED TO FILE ANY DOCUMENTARY EVIDENCE TO CARRY OUT ANY CHARITABLE ACTIVITY IN TH E RELEVANT PERIOD. THEREFORE, IN ABSENCE OF ANY DOCUMENTARY EVIDENCE, T HE PURPOSE OF SOCIETY CANNOT BE TREATED AS CHARITABLE. ACCORDINGLY, HE RE JECTED THE APPLICATION U/S 12AA(1)(B) OF THE ACT. 3. BEING AGGRIEVED BY THE ORDER OF THE LD. CIT, KOTA , THE ASSESSEE CARRIED THE MATTER BEFORE US. THE LD AR OF THE ASSES SEE HAS SUBMITTED THAT M/S CAREER POINT EDUCATION SOCIETY IS REGISTERED SO CIETY UNDER SOCIETY REGISTRATION ACT, 1958, WIDE REGISTRATION NO. 103/K OTA 1998-99, CONSTITUTED ON 25/09/1998 WITH THE MAIN OBJECTIVE TO PROVIDE EDU CATION BY WAY OF ESTABLISHING, DEVELOPING AND RUNNING SCHOOLS, COLLE GES, TECHNICAL EDUCATION 4 ITA NO. 709/JP/2014 CAREER POINT EDUCATION SOCIETY VS. CIT INSTITUTIONS, AND LIBRARIES WHICH ARE USEFUL, BENEFI CIAL AND HELPFUL FOR GENERAL PUBLIC. ITS OTHER OBJECTIVES ALSO INCLUDES TO GIVE FINANCIAL DONATIONS FOR ESTABLISHING AND PROMOTING EDUCATIONAL AND RESEARCH INSTITUTIONS IN THE FIELD OF LITERATURE, ARTS, SCIENCE, COMMERCE, HUMAN SCIEN CE, MEDICAL ETC. AND DONATE TO OTHER CHARITABLE SOCIETIES, AND OTHER ALL IED WORK IN RELATION TO PROMOTION OF EDUCATION IN GENERAL PUBLIC BY WAY OF G IVING SCHOLARSHIP, SUBSIDY, DISTRIBUTION OF BOOKS AND OTHER FINANCIAL ASSISTANCE TO NEEDY AND POOR STUDENTS. SPREADING AWARENESS, ORGANIZING WORKSH OPS AND SEMINARS TO EDUCATING STUDENTS AND SOCIETY IN GENERAL, PROMOTIN G RESEARCH IN THE FIELD OF SCIENCE, HUMAN RESOURCES, EDUCATION AND SPREADING K NOWLEDGE. THIS SOCIETY WORKS WITH NON-PROFIT MOTIVE. THE APPELLANT IN THE YEAR 2012-13 HAS APPROVED BY ALL INDIA COUNCIL FOR TECHNICAL EDUCATIO N (AICTE) TO CAREER POINT TECHNICAL CAMPUS RAJSAMAND TO RUN TECHNICAL COL LEGE VIDE LATTER DATED 18/06/2012. THE RAJASTHAN TECHNICAL UNIVERSITY KOTA HAS ALSO GRANTED PROVISIONAL AFFILIATION TO APPLICANT VIDE LETTER DA TED 20/06/2012 TO PROVIDE GRADUATION IN ENGINEERING IN VARIOUS STREAMS AND MC A. THE SOCIETY HAS STARTED FUNCTIONING AT RAJASMAND. THE COLLEGE IS ALS O COVERED UNDER TUITION FEES WAIVER SCHEME (TFWS) AND THE SOCIETY HAS ALSO DONATED A WATER COOLER FOR BENEFIT OF GENERAL PUBLIC TO DRINK COOL WATER. THE SOCIETY HAS ALSO ORGANIZED A CHARITABLE PROGRAM TO COLLECT AND DONAT E AMOUNT FOR 5 ITA NO. 709/JP/2014 CAREER POINT EDUCATION SOCIETY VS. CIT HANDICAPPED STUDENTS LIVING IN SHREE DWARKESH AKSHAM SEVA SANSTHAN, RAJSMAND. THE SOCIETY HAS ALSO DONE TREE PLANTATION AND PLANTED 51 TREES TO FULFILL OUR SOCIAL AND ENVIRONMENTAL RESPONSIBIL ITY. THE SOCIETY HAS ALSO MADE ELECTION AWARENESS CAMPAIGN IN NEARBY VILLAGES TO MAKE PEOPLE AWARE AND MOTIVATED FOR ELECTION AND CASTING OF THEIR VOT ES. THE LD AR HAS FURTHER ARGUED THAT THE ASSESSEE IS A CHARITABLE INSTITUTIO N AS PER SECTION 2(15), EDUCATION, MEDICAL RELIEF, ..AND THE ADVANCEM ENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY IS COVERED IN CHAR ITABLE ACTIVITY. THE MAIN OBJECT OF THE SOCIETY IS TO PROVIDE EDUCATION BY ES TABLISHING SCHOOL AND COLLEGES AND OTHER INSTITUTION FOR GENERAL PUBLIC. THE LD CIT HAS UNJUSTIFIED IN REJECTING THE APPLICATION FILED BY THE ASSESSEE IN VIOLATION OF THE PLAIN AND SIMPLE PROCEDURES LAID DOWN IN SECTION 12AA. AT THE TIME OF CONSIDERING THE APPLICATION FOR GRANT OF REGISTRATION U/S. 12A, THE CIT WAS NOT REQUIRED TO EXAMINE THE APPLICATION OF INCOME OR CARRYING ON OF ANY ACTIVITY BY THE TRUST OR WHO ARE THE TRUSTEES OF THE TRUST. THE CIT HAS TO LOOK INTO THE OBJECT OF THE TRUST AND GENUINENESS OF THE ACTIVITIES OF THE TR UST. HE FURTHER RELIED ON THE DECISION OF THE HONBLE ALLAHABAD HIGH COURT IN THE CASE OF FIFTH GENERATION EDUCATION SOCIETY 185 ITR 634 WHEREIN IT HAS BEEN HELD THAT AT THE TIME OF REGISTRATION OF TRUST/INSTITUTION, THE L D CIT WAS NOT REQUIRED TO EXAMINE THE APPLICATION OF INCOME OR CARRYING ON AN Y ACTIVITY BY THE TRUST. IF 6 ITA NO. 709/JP/2014 CAREER POINT EDUCATION SOCIETY VS. CIT THE TRUSTS ACTIVITY IS FOUND NON-GENUINE BY THE CIT, HE IS EMPOWERED U/S 12AA(3) TO WITHDRAW THE REGISTRATION GRANTED BY HIM. HE FURTHER RELIED ON THE FOLLOWING CASE LAWS:- (I) DIT VS. FOUNDATION OF OPHTHALMIC AND OPTOMETRY R ESEARCH EDUCATION CENTRE 210 TAXMAN 36. (II) FIFTH GENERATION EDUCATION SOCIETY (185 ITR 634 ). (III) KARNATAKA HIGH COURT IN THE CASE OF DIT(E) VS. MEENAKSHI AMMA ENDOWMENT TRUST (2013) (354 ITR 0219). (IV) HONBLE ITAT VISHKHAPATANAM BENCH IN THE CASE O F R.K. EDUCATIONAL SOCIETY VS CIT ITA NO 369(VIZAG) /2012 O RDER DATED 04-03-2015. THEREFORE, HE PRAYED TO SET ASIDE THE ORDER OF THE L D CIT AND DIRECT TO GRANT REGISTRATION U/S 12A OF THE ACT TO THE APPLICATION 4. AT THE OUTSET, THE LD SR. DR HAS VEHEMENTLY SUPP ORTED THE ORDER OF THE LD CIT AND ARGUED THAT THE ASSESSEE WAS NOT ABLE TO PROVE THE SOCIETYS OBJECT AS CHARITABLE AND ITS OBJECT WAS GENUINE. THE ASSESSEE HAS BEEN PROVIDED OPPORTUNITY OF BEING HEARD EVEN HE WAS NOT ABLE TO CONVINCE THE LD CIT THAT ASSESSEES ACTIVITIES ARE CHARITABLE IN NAT URE. 5. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. THE ASSESSEE H AD FILED APPLICATION IN FORM NO. 10A ALONGWITH REQUIRED DETAILS. THE SOCIETY IS REGISTERED FROM 7 ITA NO. 709/JP/2014 CAREER POINT EDUCATION SOCIETY VS. CIT 1998 UNDER THE SOCIETIES REGISTRATION ACT. THE COPY OF THE SOCIETY ARE CHARITABLE AND ACTIVITY ARE GENUINE. AT THE TIME OF REGISTRATION OF TRUST/INSTITUTION, THE LD CIT IS TO BE JUDGED THE OBJ ECT OF THE TRUST, WHICH SHOULD BE CHARITABLE IN NATURE AS THE ASSESSEE IS I MPARTING THE EDUCATION PROGRAMME THROUGH COLLEGE AND SCHOOL EDUCATION PROG RAMME AND HE ALSO PROVIDED VARIOUS CHARITABLE SERVICES TO THE SOCIETY AS PER OBJECT OF THE TRUST. THE CASE LAWS RELIED BY THE ASSESSEE ARE SQUARELY AP PLICABLE IN THE CASE OF THE ASSESSEE, ACCORDINGLY, ORDER OF THE LD CIT IS SE T ASIDE THE DIRECTED TO GRANT REGISTRATION FROM THE FINANCIAL YEAR 2012-13 AS PER APPLICATION FILED IN THE FORM 10A. 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 04/12/2015. SD/- SD/- YFYR DQEKJ VH-VKJ-EHUK (LALIET KUMAR) (T.R. MEENA) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 04 TH DECEMBER, 2015 RANJAN* VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- M/S CAREER POINT EDUCATION SOCIETY, K OTA. 2. IZR;FKHZ @ THE RESPONDENT- THE CIT, KOTA. 8 ITA NO. 709/JP/2014 CAREER POINT EDUCATION SOCIETY VS. CIT 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO.709/JP/2014) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR