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2017 (12) TMI 1690 - AT - Income TaxGrant of exemption u/s 12AA denied - objections of CIT(E) that assessee had been claiming exemption u/s 10(23)(iiiab) and therefore he should not have filed the application u/s 12AA - shifting from the applicability of section 10(23C)(iiiab) to section 12AA - object of assessee society for providing education - objection of Ld. CIT(E) that assessee was running a school which has not been mentioned in the byelaws - HELD THAT:- Objections of CIT(E) that assessee had been claiming exemption u/s 10(23)(iiiab) and therefore he should not have filed the application u/s 12AA of the Act has no force as the assessee is free to avail registration under any alternative provisions if more than one alternatives are available and if in accordance with the provisions of law, the assessee is eligible for registration u/s 12A of the Act which it had applied, the Ld. CIT(E) should not have raised this objection and should have examined the contentions for grant of registration. Second objection of Ld. CIT(E) that assessee when declared as autonomous body should have changed the objects and Memorandum of Association also do not have any force as the facts and circumstances of society and constitutions of members remained same and objects of the society also remained same and the only purpose of declaring the society as autonomous body was that it should be run as an autonomous body in line with the rules laid down by All India Council of Technical Education. The amendment in the byelaws of society has nothing to do with the objects of society which undoubtedly are charitable in nature. As regards the objection of CIT(E) that assessee was running a school which has not been mentioned in the byelaws, we find that the objects of the society as contained in the Memorandum of Association placed at P.B. page 6 to 10 are to provide for instruction and research in such branches of Engineering and Technology as the College may think fit and for the advancement of learning and dissemination of knowledge in such branches. The object clause noted above is for providing education and education does include running of school also. In fact in accordance with the instructions of Director of Technical Education and Industrial Training, Govt. of Punjab vide notification dated 12.02.2009 had accorded its sanction to establish new multi disciplinary academy and such multi disciplinary academies were also required to provide 10+2 course to the students also and therefore in accordance with the instructions of Punjab Government, the school was also set up to provide education up to 10+2 level and such school was also registered with Punjab School Education Board. Mere non mentioning of all schools and colleges in the Memorandum of Association does not disentitle the assessee for getting registration u/s 12A In the present case the CIT(E) has not doubted the objects of the society which undoubtedly are charitable in nature and genuineness of activities of the society has also not been doubted. We direct the Ld. CIT(E) to grant registration to the society u/s 12AA - Decided in favour of assessee.
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