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2017 (11) TMI 1877 - AT - Income TaxExemption u/s 11 - registration u/s 12A denied - Assessee submitted that the assessee had filed an application in form No. 10A seeking Registration where admittedly assessee was an ongoing entity and has been in operation since 13.03.2003 - HELD THAT:- The assessee society is stated to be in a village area and has been running for the last few years. We note from the fee structure of the classes that from class-X the assessee society has also added another class XI to its school and as per the list made available to the tax authorities, the assessee society has adequate staff by way of qualified teachers and despite the fact that complete details which we proceed to enumerate from para 5, have been made available, nothing adverse or contrary except the relevant portions extracted in the earlier part of this order have been referred to by the CIT(Exemptions). The suspicions raised where the criticism is posed on the grounds that the assessee is “adding to the fleet of vehicles” when considered in the factual matrix that the fleet of vehicles are actually school buses to carry the children to and fro in the village where public transport for the said exercise is not easily available demonstrated that its claim has been rejected purely on biases and prejudices. The fact that it results in creating an asset is neither here nor there. The re-deployment of funds is found as per record purely for the purpose of education. The mere fact that the assessee is paying lesser salary to trained teachers does not necessarily demonstrate that the quality of the education necessarily suffers as it would depend upon the ratio of available teachers looking for jobs and the institutions looking for such people at the relevant point of time i.e. the availability of qualified teachers looking for jobs. Similarly the suspicions that the assessee was not imparting quality education, it is seen is also not borne out from the record. The decision of the Hon'ble Bombay High Court in the case of Yash Society [2015 (3) TMI 459 - BOMBAY HIGH COURT] operates as argued by the ld. AR entirely on different set of facts and circumstances and in the facts of the present case, has no role whatsoever. On consideration of the facts, circumstances and position of law as considered in detail herein above, we find no good reason why the benefit of registration u/s 12A has been denied to the assessee. On a consideration of the facts, circumstances and position of law, we direct that the registration u/s 12A be granted to the assessee. - Decided in favour of assessee.
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