Dayanand Educational Society, Ambala City V. CIT, Panchkula

ITA 747/CHANDI/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90154 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 19-05-2015
• Assessment Year: 2014-2015
• Appeal Filed On: 25-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTI KUMARI
• Keywords: Charitable institution
• Section: 12; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R. SOOD, ACCOUNTANT MEMBER ITA NO. 747/CHD/2014 ASSESSMENT YEAR: 2014-15 DAYANAND EDUCATIONAL SOCIETY, VS. CIT HISAR ROAD SECTOR 2 AMBALA CITY PANCHKULA PAN NO. AAAAD2909A & ITA NO. 748/CHD/2014 ASSESSMENT YEAR: 2013-14 AMBALA PUBLIC EDUCATIONAL SOCIETY, VS. CIT VILLAGE NASIRPUR SECTOR 2 GANESH VIHAR PANCHKULA AMBALA CITY PAN NO. AABTA0541M (APPELLANT) (RESPONDENT) APPELLANT BY : SH. ROHIT GOEL RESPONDENT BY : SMT. JYOTI KUMARI DATE OF HEARING : 19/05/2015 DATE OF PRONOUNCEMENT : 21/05/2015 ORDER PER T.R.SOOD, A.M. BOTH THE APPEALS OF THE ASSESSEES ARE DIRECTED AGAI NST THE SEPARATE ORDERS OF CIT, PANCHKULA DT. 01/08/2014 AN D 31/07/2014 RESPECTIVELY. ITA NO. 747/CHD/2014 2. IN THIS APPEAL ASSESSEE HAS RAISED THE FOLLOWING GROUND: 2 1. THE LEARNED COMMISSIONER OF INCOME TAX HAS ERRED IN LAW AND FACTS AND LAW IN NOT REGISTERING THE APPLICANT TRUST U/S 12 AA. 3. AFTER HEARING BOTH THE PARTIES WE FIND THAT ASSE SSEE MADE AN APPLICATION FOR OBTAINING REGISTRATION UNDER SECTION 12A. TO VE RIFY GENUINENESS OF THE SOCIETY THE REPORT FROM AO WAS CALLED. THE AO VIDE HIS REPO RT NO. 1165 DT. 25/07/2014 SUBMITTED AS UNDER: I) TO EDUCATE THE CHILDREN OF AMBALA CITY AND THE SURR OUNDING VILLAGERS AND OTHER PLACE OF INDIA. II) TO EDUCATE THE CHILDREN WITH THE LATEST AND MODERN TECHNIQUES OF EDUCATIONAL PRACTICES. III) TO PREPARE THE COMING GENERATION AS GOOD AN WORTH C ITIZEN OF THE COUNTRY. IV) TO MAKE AN ALROUND DEVELOPMENT OF THE PERSONALITY O F THE CHILDREN. V) TO BRING THE CHILDREN OF THE POOR AND THE WEAKER SE CTIONS OF SOCIETY AT PAR WITH OTHER CHILDREN OF THE UPPER STATE OF SOCIETY. VI) TO INCULCATE THE HUMAN VALUES IN GENERAL AND VEDIC PRINCIPLES OF MAHARISHI DAYANAND SARASWATI PARTICULAR IN THE COMING GENERAT IONS. THE COMMISSIONER WAS NOT SATISFIED ABOUT THE GENUIN ENESS OF ACTIVITIES. HE ALSO NOTED THAT SINCE SOCIETY IS NOT REGISTERED UND ER THE NEW HARYANA REGISTRATION & REGULATION OF SOCIETIES REGISTRATION ACT, 2012, THEREFORE REGISTRATION WAS REFUSED. 4. BEFORE US LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE NEW ACT WAS PASSED BY THE GOVERNMENT OF HARYANA FOR REGISTRATIO N OF SOCIETY. THE ASSESSEE HAS ALREADY APPLIED FOR REGISTRATION BUT THE SAME W AS NOT GRANTED BECAUSE OF HUGE BACKLOG WITH THE REGISTRAR OF SOCIETY AT THE R ELEVANT POINT OF TIME. LATER ON, THE REGISTRATION CERTIFICATE WAS OBTAINED ON 28 /11/2014 WHICH WAS FILED BEFORE US. IT WAS FURTHER CONTENDED THAT AT THE TIM E OF REGISTRATION THE LD. COMMISSIONER WAS REQUIRED ONLY TO VERIFY THE OBJECT S OF SOCIETY WHETHER THE SAME ARE CHARITABLE OR NOT. IN THIS REGARD HE RELIE D ON THE DECISIONS OF PUNJAB & HARYANA HIGH COURT IN CASE OF CIT-II, CHANDIGARH VS . M/S SURYA EDUCATIONAL & CHARITABLE TRUST IN ITA NO. 701 OF 2010(O&M), AND C IT, PANCHKULA VS. JANKI JI EDUCATION SOCIETY IN IT APPEAL NO. 187 OF 2012 (O&M ). 5. ON THE OTHER HAND LD. DR STRONGLY SUPPORTED THE ORDER OF LD. COMMISSIONER. 6. AFTER CONSIDERING THE RIVAL SUBMISSIONS CAREFULL Y WE FIND THAT SOCIETY WAS REGISTERED WITH THE REGISTRAR OF SOCIETY VIDE REGIS TRATION NO. 629 DT. 08/07/1996. THIS FACT HAS BEEN MENTIONED BY THE COMMISSIONER IN THE FIRST PARA OF HIS ORDER. 3 IN ANY CASE THERE IS NO REQUIREMENT UNDER SECTION 1 2AA THAT SOCIETY SHOULD BE REGISTERED. SIMPLY BECAUSE NEW FORMALITY OF REGISTR ATION WAS NOT COMPLETED AT RELEVANT POINT OF TIME CANNOT BE A GROUND FOR NOT G RANTING REGISTRATION UNDER SECTION 12AA. FURTHER IT IS SETTLED POSITION OF LAW THAT AT THE TIME OF REGISTRATION THE COMMISSIONER IS REQUIRED TO ONLY EXAMINE THE OB JECTS OF THE SOCIETY WHICH IN THE PRESENT CASE IS TO RENDER EDUCATION. THEREFORE IN OUR OPINION THE REGISTRATION IS WRONGLY DENIED. ACCORDINGLY HE SET ASIDE THE ORD ER OF LD. COMMISSIONER AND GRANTS REGISTRATION TO THE SOCIETY. 7. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. ITA NO. 747/CHD/2014 8. THE FACTS AND ISSUES RAISED IN THIS APPEAL ARE I DENTICAL TO THE ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15 IN ITA NO. 747/C HD/2014 WHICH WE HAVE ADJUDICATED IN ABOVE NOTED PARA, FOLLOWING THAT ORD ER WE DECIDE ISSUES RAISED IN THIS APPEAL ALSO IN FAVOUR OF THE ASSESSEE. 9. IN THE RESULT BOTH THE APPEALS ARE ALLOWED ORDER PRONOUNCED IN THE OPEN COURT ON 21/05/2015 SD/- SD/- (BHAVNESH SAINI) (T.R. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 21/05/2015 AG COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT, TH E CIT(A), THE DR