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2020 (6) TMI 131 - AT - Income TaxDenial of registration u/s 12A - Charitable activity u/s 2(15) - CIT(E) rejected the application on the ground that the appellant trust had been transferring funds to another trust namely ’Sanjeevani Educational Society’ out of the receipts received from ‘NSDC’ - appellant trust had failed to provide various entries and details relating to the cash withdrawals from the bank account AND also failed to prove that the funds were utilized for advancement of the objects of the trust - CIT(E) also observed that the activities of the appellant trust of Skill Development did not qualify as ‘Education’ - HELD THAT:- Activities of the appellant trust would fall under the definition of ‘Education’ - Assessee has placed reliance on the decision of the Coordinate Bench of the Tribunal in the case of ‘Unique Educational Society, Yamunanagar vs CIT [2019 (10) TMI 652 - ITAT CHANDIGARH] wherein, in almost similar facts and circumstances, the similar activity of Vocational Education/Training programme through ITI has been held to fall within the purview and scope of term ‘education’. It has been further held that the receipt from the said activity was in the course of carrying out of educational activity of the assessee. Appellant trust had been transferring funds to another society namely Sanjeeni Educational Society - Assessee has invited our attention to the copy of the certificate of Registration in the case of ‘Sanjeevni Educational Society’ and has submitted that the said society is separately registered and is not a part of the assessee trust. It has been further submitted that the Sanjeevni Educaitonal Society was only a franchise of the assessee trust for implementation of the skill Development program under the ‘Prasadhan Mantri Kaushal Vikas Yogna’ (PMKVY). That the appellant trust has been providing training through its own institute as well as through Sanjeevni Educational Society for which payments were made to the Sanjeevani Educational Society solely for running the educational programme/skill development course. Since the funds were given to the Sanjeevni Educational Society for running of similar activities on behalf of the appellant trust, hence, in our view, the Ld. CIT(E) was not justified in rejecting the application of the appellant trust on this ground. Submission of the financial statement and application of funds - We do not agree with the above contention of the Ld. Counsel for the assessee that the Ld. CIT(E) can not raise the inquires about the application of the income/genuineness of the activities of the assessee trust at registration stage. Since the assessee trust has already commenced its activities and has applied funds for the advancement of its objects, hence, the Ld. CIT(E), in our view, would be justified to examine the activities and application of funds so as to form a view and to ascertain about the genuineness of the activities of the assessee trust. Impugned order of the CIT(E) is set aside and the matter is restored to the file of the Ld. CIT(E) for the limited purpose of examination of financial statement and application of funds to ascertain about the genuineness of the activities of the appellant trust subject to our observations made above. - Decided in favour of assessee for statistical purposes.
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