Shree Guru Govind Singh Educational Trust, Meerut V. CIT Exemptions, Lucknow

ITA 8962/DEL/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 1237 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 02-10-2022
• Assessment Year: 2019-2020
• Appeal Filed On: 17-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAKESH GUPTA
• Keywords: Charitable institution
• Section: 143(3); 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘G’ : NEW DELHI) BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.8962/Del/2019 (Assessment Year : 2019-20) Shree Guru Govind Singh Educational Trust, 189, Adarsh Nagar, Sardhana Road, Meerut, Uttar Pradesh PAN : AAKTS1567N Vs. C.I.T. Exemption Lucknow Appellant Respondent Assessee by Dr. Rakesh Gupta, Adv. & Sh. Somil Agarwal, Adv. Revenue by Ms. Rakhi Vimal, CIT-DR Date of hearing: 03.10.2022 Date of Pronouncement: 11.10.2022 ORDER Per Anubhav Sharma, JM : The assessee has come in appeal challenging order dated 28.09.2019 of CIT (Exemption), Lucknow u/s 12AA (1)(b)(ii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) as the application of the assessee for registration u/s 12AA of the Act was dismissed. 2. The facts in brief are appellant had filed an application for registration u/s 12A(1) of the Act in Form 10A on 26.03.2019 with the Commissioner of 8962/Del/2019 Shree Guru Govind Singh Educational Trust, Meerut 2 Income Tax (Exemptions), Lucknow. The appellant trust is engaged in imparting education by running two institutions namely Guru Govind Singh Collection Education and Swami Dayanand Sarswati Educational Institute and offering B.Ed., BEID, DEIED, B.Pharma courses . The copy of trust deed and supplementary deed is available on page no. 67-88 of the paper book and page no. 95-121 and 155-170 has copy of affiliation / recognition certificates. The Ld. CIT(A) had put detail questionnaire of 27 points which were replied by the appellant and the copy of which is on record along with necessary annexures at page no. 1 to 5 of the paper book. It was in regard to point no. 24 and 25 of the questionnaire, Ld. CIT(A) was not satisfied and had declined the application of appellant. The point 24 & 25 are reproduced for convenience as below :- “24. If your trust/society is an educational institution, please furnish details of all the students enrolled in your institute during last three years under Right to Education Act, 2009. 25. Please furnish copies of approvals/ permissions received from the Competent Authorities, with respect to the charitable activities carried out by you in the past three years, under the relevant respective laws, which are material for the purpose of achieving your objects.” 3. The appellant has now raised following grounds of appeal :- “1. CIT(E) grossly erred in refusing to grant registration u/s 12AA even after satisfying with the objects/activities of the society merely on the basis that there was no renewal of one course though the same was permanently approved & document for the same was attached with the application. His observation was factually incorrect. 2. CIT(A) grossly erred in refusing to grant registration u/s 12AA even after satisfying with the objects/ activities of the society merely on the basis there was no renewal of one course 8962/Del/2019 Shree Guru Govind Singh Educational Trust, Meerut 3 though that the institution was running three more approved courses. He failed to consider the registration of other courses. 3. CIT(E) did not appreciate the fact that assessee was running an educational institution and the cases of earlier years were accepted u/s 143(3) only after considering activities as charitable in terms of section 10(23C)(iiiad). 4. CIT(A) grossly erred in refusing to grant registration u/s 12AA without any adverse finding on its charitable activity of Education. 5. Your appellant therefore prays that looking to the facts and circumstances of the case, the said CIT order be deleted and registration u/s 12AA be granted. 6. Your appellant further reserves her right to add, alter or to amend any of the aforesaid grounds at the time of hearing of an appeal.” 4. Heard and perused the record. 5. The moot question involved is sustainability of following findings of Ld. CIT(E) reproduced as below : “5.1 From a perusal of the documents filed in the written submission, it is noticed that the assessee trust has claimed that the trust is running B-Ed School at Sambhal. Further he has submitted the copy of affiliation certificate received from Mahatma Jyotiba Phoole Ruhelkhand, Bareilly dated 03.05.2016, which says that affiliation has been granted for two years from 01.07.2016 under certain conditions. On perusal of the same it is noticed that affiliation certificate has already expired on 30.06.2018. However, no renewal certificate has been furnished by the assessee trust during the proceedings. Further, the assessee trust has also not submitted any supportive documents/bills/vouchers/recognition certificate, so that the genuineness of the activity cannot be ascertained. 8962/Del/2019 Shree Guru Govind Singh Educational Trust, Meerut 4 5.2 The written submission of the applicant has been considered. With the afore mentioned amendment in section 12AA of the Income Tax Act, the applicant is required to comply with any laws, material for achieving its objects. However, in case of the applicant, the applicant has not also obtained the permissions/approvals/affiliations, for implementing its objects” 6. It is submitted on behalf of the appellant that Ld. CIT(E) has made an incorrect factual observation that the courses for which the institution was running where no more recognized and affiliation certificates stood expired on 30.06.2018. At the same time making observation of lack of supportive documents / bills / vouchers to examine the genuineness of activity is a vague and non-specific observation which cannot be sustained. It was submitted that without finding anything adverse into objects of appellant-trust on the lack of evidence about activities, Ld. CIT(E) has given erroneous findings. Ld. Counsel specifically relied judgment of Agra Tribunal in ITA No. 03/Agr/2021, Doctor Madan Lal Atri Charitable Trust vs. CIT Exmp., Lucknow to contend that in similar circumstances, the Agra Bench had observed that the Commissioner (Exemption) can inquire into compliances of law which are material for fulfillment of the objects of assessee and an inquiry cannot be made about the approvals or permissions being given or not. 6.1 On the other hand, Ld. DR submitted that the renewal granted was also conditional and there is nothing to show that the conditions were complied or not. It was submitted that as for the purpose of enquiry genuineness of activities the appellant was under obligation to produce supporting documents but the same were not filed. Thus, Ld. DR defended the orders of ld. CIT(E). 7. Now appreciating the matter on record it can be observed that the fact of assessee having accreditation to run B.Ed. courses by letter dated 03.05.2016 available at page no. 154 of the paper book for the period of two years is not disputed. The ld. CIT(E) however, was not satisfied due to lack of evidences 8962/Del/2019 Shree Guru Govind Singh Educational Trust, Meerut 5 that if there was any renewal of the same. On behalf of the appellant at page no. 55 of the paper book a copy of letter dated 10.05.2018 has been placed on record and it submitted that the concerned university had given an extension and the findings of Ld. CIT(A) in para no. 5.1 are factual incorrect. 7.1 However, when the written submissions filed before Ld. CIT(E) available at page no. 1 to 5 of the paper book are considered it can be observed that to the query no. 8 “please attached a note on activities conducted since in session / during last 3 years” the assessee has replied about the courses being run and the copies of affiliation certificates / recognition certificates were attached as Annexure 14 and which have been placed on record also as Annexure 14 from page no. 95-121 of PB. A careful perusal of same shows that they are primarily in regard to courses run by Swami Dayanand Sarswati Educational Institute recognized by NCTE National Counsel for Teacher Education and Mahatma Jyotiba Phule Rohilkhand University, Bareilly. The relevant letter dated 10.05.2018 available at page no. 155 is part of copy of affiliation / recognition certificates available at page no. 154-170 of the paper book and labled as annexure 19. However, the submissions in regard to query of CIT(E) had Annexure up to 18 only and the last annexure being annexure no. 18 i.e copies of news advertising of the school which is available at annexure 18, running from page no. 150-153 of the paper book submitted before this Bench. Thus, in all likelihood letter dated 10.05.2018 by which accreditation of the B.Ed courses was extended was not before Ld. CIT(E). 8. At the same time, the Bench is of considered opinion that grant of recognition and its extension is sufficient compliance of the laws material for achieving its objects and beyond that no inquiry is required. It is for the concerned statutory authorities to see that the conditions of accreditation of the courses are complied. There is no requirement of any supporting documents/ bills/ vouchers in regard to educational activity being run when the authorities 8962/Del/2019 Shree Guru Govind Singh Educational Trust, Meerut 6 responsible for regulating the education of that stream or course examine eligibility to run the courses and that the same are run in accordance with law. 9. In the light of aforesaid , the appeal of assessee is allowed with direction that subject to the Ld. CIT(E) being satisfied about extension of the accreditation of the B.Ed. course beyond 30.06.2018, vide letter dated 10.05.2018 issued by Mahatma Jyoti Phule Rohilkhand University, Bareilly, the Ld. CIT(E) shall allow the application of the assessee. An opportunity of hearing for filing relevant evidence in that context be given to the assessee. 10. Accordingly, the appeal of assessee is allowed for statistical purposes. Order pronounced in the open court on 11 th October, 2022. Sd/- Sd/- (ANIL CHATURVEDI) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:-11 th .10.2022 *Binita, SR.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI