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2022 (5) TMI 1146 - AT - Income TaxExemption u/s 11 - registration u/s 12A denied - Absence of dissolution clause - HELD THAT:- As relying on various case M/S SHREE DURGA MATA MANDIR [2020 (3) TMI 501 - PUNJAB & HARYANA HIGH COURT], M/S AJIT EDUCATIONAL AND PUBLIC WELFARE SOCIETY [2018 (10) TMI 1039 - PUNJAB AND HARYANA HIGH COURT],GEETA LALWANI FOUNDATION [2018 (7) TMI 2053 - BOMBAY HIGH COURT] AND SETCO FOUNDATION [2019 (2) TMI 532 - BOMBAY HIGH COURT] it is not obligatory for the assessee for maintain dissolution clause which will not be the issue for rejection of registration u/s 12A of the Act. Accordingly the registration U/s 12A could not be denied to the assessee-society for non maintain the dissolution clause. The aims and objects of the trust includes running of coaching centre, technical and professional institute which are not covered u/s 2(15) for charitable purpose - As in the factual matrix the activity of the assessee-society had never run coaching centre. Also, a CBSE School cannot run a coaching centre as per the guideline of Board. Also income of the expenditure account of assessee no such income was reflected from coaching centre. The number of years the assessments were done by the revenue authorities u/s 143(3) for assessee. But no specific point was pointed out related to maintain of coaching centre. So, the rejection of the registration on the basis of ancillary object i.e. running coaching centre is uncalled for. The accounts of assessee are not being maintained in systematic manner - The assessing authority did not raise any question during assessment U/s 143(3) of the Act related maintenance of books of accounts. The ld CIT(E) did not recognise any specific lacuna in the books of assessee. All three reasons are not proper indication for rejecting the application of registration u/s 12A. For registration u/s 12A the steerage of the Act is that the identity of assessee and the activity relating to the main object of the society. In following two points was not properly considered by the ld. CIT(E). The maintaining a coaching centre only was incorporated in the order of the CIT(E). But no proper verification was done from the books of account and from the activities of the assessee by revenue. Related to maintenance of proper accounts no specific lacuna was found out by revenue. CIT (E) has erred in rejecting the application for registration u/s 12AA of the Act filed by the applicant. Hence ld. CIT (E) is directed to grant registration u/s 12AA of the Act to the assessee/applicant - Appeal of assessee allowed.
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