TMI Blog2014 (8) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted by the assessee are relevant for adjudication of the assessee for registration u/s 12A of the Act - additional evidence submitted by the assessee deserves to be admitted and we admit the same by allowing application of the assessee filed under Rule 29 of the IT(AT) Rules, 1963 – Decided in favour of Assessee. Since the additional evidence of the assessee pertaining to the application for registration u/s 12A of the Act is admitted, it would be appropriate that the issue of registration u/s 12A of the Act requires fresh adjudication at the level of CIT, Faridabad – the issue of registration u/s 80G of the Act being consequential rejection of the application of the assessee is also restored to the file for fresh adjudication with a direction to CIT that the application of assessee filed in Form No. 10G shall be reconsidered in the light of conclusion drawn for grant of registration u/s 12A of the Act - thus, the matter is remitted back to the CIT for fresh consideration – Decided in favour of Assessee. - I.T.A.No.4722/Del/2011, I.T.A.No.4723Del/2011 - - - Dated:- 25-7-2014 - Shri S. V. Mehrotra And Shri Chandra Mohan Garg,JJ. For the Appellant : Shri Sanjay A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rating in India in this case is doing a lot more than that. The Lancaster University decides the strategy as well as details of academic activities and enters into a separate contract with students, which entitles them to benefits and obligations of 'external students' of Lancaster. It is also pertinent to mention that whereas arrangements between Indian educational institutes and Indian Universities are subject to Indian laws, this agreement is subject to laws of other countries, including the British laws (paras 25 and 26). It has already been held above that within its agreement with Lancaster University, the responsibility for 'education' lies with Lancaster, a foreign university, engaged in business of education for it receives registration fee, in addition to its share of all other receipts, including tuition fees and royalty from the applicant, who is essentially providing support services to Lancaster in the business of education and for such it receives a portion of fees, collected from students. In given facts and circumstances and for reasons given above, I hold that the applicant is providing support services, and that too for a 'fee', t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. From the written submissions and application, we observe that the assessee has made following submissions to support its application for filing of additional evidence:- That vide letter dated 26/08/2011, the Ld CIT raised various contentions about the terms settled between GDG Trust and Lancaster University. In response to which assessee replied vide letter dated 29108/2011 05/09/2011. However while rejecting the application for registration u/s 12A and 80G of Income Tax Act, 1961 vide order dated 8.9.2011, the Ld CIT made adverse observation about various facts that were never confronted to assessee for its explanation and therefore proper opportunity of being heard was not provided to assessee and as such assessee may please be allowed to furnish these evidences earlier nor assessee was intimated as if the CIT was of any adverse opinion in respect of certain facts, to which the evidences intended to be filed at this stage are relevant. Detail of additional evidences requested to be furnished under rule 29 of Income Tax (Appellate Tribunal) Rules, 1963, is as under: a. Sample Copy of Identity Card of students (Page no. 1-2 of Annexure-B) Observation at Page 2, Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng any adverse inference about the identity cards to be issued by the Lancaster University during the proceedings. The AR further submitted that the student enrolled with G.D. Goenka are issued with two types of identity cards, one of GDGWI i.e. GD Goenka World Institute, to identify them as student of GD Goenka World Institute and other identity card was Library card of Lancaster University, so as to allow students to use online library of Lancaster. The AR further contended that the CIT did not ask any information about recruitment and payroll of the staff, therefore, the assessee was not aware of the fact that the CIT is not satisfied about the fact of staff recruitment and appointment. The AR vehemently contended that the appointment of teaching, administrative and support staff is made on the payroll of GD Goenka World Institute under the provisions of assessee Trust and the additional evidence pertaining to the appointment of staff and identity cards is relevant and necessary for proper adjudication of the appeal. The DR reiterated its earlier argument and submitted that the additional evidence could have been filed before the CIT, Faridabad and there is no sufficient cause w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mode of payment of their salary and perquisites but the CIT without asking any explanation in this regard drew a conclusion that the assessee trust is merely facilitating Lancaster University in the business of education in India and that too for a fee. Under above factual matrix, we reach to a conclusion that important evidence and relevant material was not considered by the CIT while rejecting the application of the assessee for registration u/s 12 of the Act. Since there was no query from the CIT, Faridabad, the relevant evidence and documents could not be produced and considered at the level of CIT during the original proceedings. However, in the interest of justice, we find it appropriate that the additional evidence and documents submitted by the assessee are relevant for adjudication of the assessee for registration u/s 12A of the Act. Accordingly, additional evidence submitted by the assessee deserves to be admitted and we admit the same by allowing application of the assessee filed under Rule 29 of the IT(AT) Rules, 1963. Ground no. 1 2 of the assessee in ITA No. 4723/D/2012 12. Since by the earlier part of this order, we have admitted and allowed additional evide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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