TMI Blog2012 (8) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... r of assessee. - ITA NO. 123/PN/2011 - - - Dated:- 29-6-2012 - Shri Shailendra Kumar Yadav, And Shri R.K. Panda, JJ. Appellant by : Sri Sunil Ganoo Respondent by : Sri V. Anandarajan, CIT ORDER Per R.K. PANDA, AM : This appeal filed by the assessee is directed against the order passed by the CIT-I, Pune rejecting the request of registration u/s.12A of the I.T. Act. 2. There is a delay of about eight months and one week in filing of the appeal before the Tribunal. The assessee, through the resident Deputy Collector Ahmednagar and Secretary of the committee, filed an affidavit explaining the reasons for delay in filing of the appeal. After hearing both the sides and after considering the contents of the affidavit the delay in filing of the appeal is condoned. 3. Ground of appeal No. 1 by the assessee reads as under : 1. In the facts and circumstances of the case and in law, the learned CIT has erred in holding that the appellant cannot be regarded as a Charitable Trust within the meaning of Section 12A r.w.s. 2(15) of the I.T. Act, 1961. The said finding being arbitrary, perverse and devoid of merits and being legally unsustainable the same may please be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not readily available with the SETU MAHARASTRA. h. To undertake selection and appointment of personnel for the agencies operation and maintenance of the centres in consultation with State SETU. i. To assist, collaborate and organize training programs in the field of computer hardware, software, networking and other allied services. j. To help in the growth of computer awareness and a computer culture. k. To follow, all the directions of the SETU MAHARASHTRA, as this being as Apex Organisation of all the district SETU. l. To undertake such other activities and to create such other structure Institution and organisation as may be found essential or conducive for the better realisation of the above mentioned aims and objectives . 5. The assessee filed an application in Form No. 10A requesting for grant of registration u/s.12A of the I.T. Act. The learned CIT called for certain relevant details from the assessee, viz, English version of the object clauses, details in respect of activities carried out by it, copies of IT returns filed for the last 3 years etc. On examination of the object clauses the learned CIT observed that some of the objects clearly fall within the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that in that case the market committee which was constituted under the Agricultural Produce Marketing (Regulation) Act, 1963 for regulating procurement and supply of Agricultural produce collected fees/cess for the services rendered by them. The Commissioner rejected their claim seeking registration u/s.12A/12AA on the ground that the assessees are commercial establishments and the services rendered by them are not free of cost and are on payment of cess/fees which entails profit motive. The Tribunal reversed the order passed by the CIT and on further appeal the Hon ble High Court, after considering a plethora of decisions held that where the dominant purposes of a trust/institution is charitable, incidentally if some profit is made and the profit is used for charitable purposes, the trust/institution does not cease to be established for charitable purposes. The learned counsel for the assessee thereafter drew the attention of the Bench to Para 21 of the order which reads as under ; 21. It is contended by the Revenue that the assessees are established with profit motive because they are not rendering free services but they are charging cess/fees for their services and, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operators, it cannot be said that the objects and activities are non-charitable and are in the nature of carrying on trade/commerce or business. He accordingly submitted that registration u/s.12A should be granted. 8. The learned D.R. on the other hand heavily relied on the order of the CIT. He submitted that the decision relied on by the learned counsel for the assessee is not applicable to the facts of the present case since the same is prior to the amendment. Since the objects of the assessee society are not charitable in nature in view of the amended, provisions of section 2(15) of the I.T. Act, therefore, he submitted that the order of the CIT refusing registration u/s.12A/12AA should be upheld. 9. We have considered the rival arguments made by both the sides, perused the order of the CIT and the Paper Book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find the provisions of Section 2(15) reads as under : charitable purpose includes relief of the poor, education, medical relief. [preservation of environment (including water sheds, forests and wildlife) and preservation of monuments or places of objects of artistic o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see is accordingly allowed. 10. Grounds of appeal No. 2 and 3 by the assessee reads a s under : 2. In the facts and circumstances of the case and in law, the learned CIT failed to appreciate that since no orders were passed by him on application filed on 04-05-2006 within a period of six months, the registration is deemed to have been granted to the appellant and in the circumstances the learned CIT ought to have granted registration to the appellant from date of its inception. It is therefore prayed that the learned CIT may please be directed to grant registration to the appellant since the date of its inception by condoning the delay in filing the application. 3.It may please be held that the application dated 16-03-2009 filed on 31-08-2009 by the appellant in Form No. 10A for grant of registration u/s.12AA of the I.T. Act, 1961 being a true copy of the earlier application filed on 04-05-2006, the date of application be held as 04-05-2006 and the learned CIT may please be directed to grant registration to the appellant since the date of its inception by condoning the delay in filing the application . 11. The learned counsel for the assessee submitted that the assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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