Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 358 - ITAT AGRAExemption u/s 11 - Registration u/s 12AA - satisfaction of the lower authority pertaining to genuineness of the activities of the trust - HELD THAT:- Undoubtedly in the present case the activities of the assessee are genuine as is clear from the chart of the activities reproduced herein above - as the assessee is also claiming exemption u/s 10(23) from the respondent for the last three years i.e 2017-18 to 2019-20, which were granted to the assessee for the purposes of imparting the education only. Thus the first condition as stipulated under section 12AA , regarding the genuineness of the activity have duly been proved by the assessee before the Commissioner exemption. We have no doubt about the genuineness of the activities of the assessee i.e the assessee was/is imparting education and imparting of education is a charitable activities u/s 2(15) of the Act. Thus we hold that the activities of the assessee are charitable within the meaning of section 12AA (1) (i) read with 2(15). In the present case the assessee is registered with the object to render services in the field of education by establish and operating schools and educational institutions in respect of any reservation for any caste creed race religion or language. In paragraph 4 of the impugned order it is mentioned that “ in order to fulfill its objectives the trust has been running a school by the name of the Aryans School at Atri Gardens Sipri Bazar, Jhansi. The Aryans School is an English Medium School, affiliated with CBSE Board, upto Class 12th.” Commissioner exemption has sought the information from the assessee, as mentioned by her in with respect to the permissions received from the competent authorities with respect to charitable activities carried out by the assessee, which are material for the purposes of achieving its objects. It is clear that the Commissioner exemption had not specified which are the competent authorities, from which the assessee was required to seek the approval/permission and which according to Commissioner exemption are material for achieving its objects in the absence of specific querry it was not possible for the assessee to answer it. The perusal of these documents shows that the assessee have all the requisite permissions/ approval as are necessary to run the school. All these documents were never sought from the assessee during proceedings before the CIT( Exemp). Hence there was no occasion to produce these documents before the lower authority. The assessee can not be relegated back to the lower authority for the purposes of satisfaction of the revenue, as the assessee can not be made to suffer on account of failure of the lower authority, for giving show cause notice and making enquiries on the said aspects. In the light of the above we find that the assessee was having necessary approval /affiliation from the respective authorities as required by the Commissioner exemption. These permission/ approval now produced by the necessary may not be necessary for the purposes of considering registration, as the same had already been filled with Board at the time of affilliation. Nonetheless now these permission / approval are available, there is no point of denying the registration on the pretext of alleged deficiency. We are of the considered opinion that the assessee is entitled to registration under section12AA of the Income Tax Act 1961. Accordingly, we direct the Respondent to grant registration to the assessee from the date of its application - Appeal of the assessee is allowed.
|