2014 (8) TMI 419

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..... he Tribunal"), in ITA No.1310/Chd/2012, claiming following substantial questions of law:- (i)Whether in the facts and circumstances of the case, the Income Tax Appellate Tribunal has fallen in error in upholding the order of the Commissioner of Income Tax without examining the aims and objects of the appellant society? (ii)Whether in facts and circumstances of the case, the Income Tax Appellate Tribunal is correct in law in holding that for the purpose of grant of registration under Section 12A the carrying on of the charitable activities is essential? (iii)Whether in facts and circumstances of the case, the order passed by the Income Tax Appellate Tribunal is contrary to the ratio of the jurisdictional High Court in Civil Writ Petition .....

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..... n of the existing school. Vide order dated 31.10.2012, Annexure A.5, the Commissioner of Income Tax, Panchkula rejected the application on the ground that as per the balance sheet and profit and loss account on 31.3.2012, a corpus fund of Rs. 5000/- was shown in the balance sheet but there were no receipts and only an expenditure of Rs. 1760/- was shown which was debited to the income and expenditure account. The Commissioner of Income Tax declined registration under Section 12AA of the Act on the ground that the society had not carried out the charitable activity as per its objects. Aggrieved by the order, the appellant filed appeal before the Tribunal pleading that at the stage of grant of registration under section 12AA of the Act, the s .....

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..... ose of generating income for its members. Therefore, it is not a case where the activities, which were yet to be started, were found to be in-genuine. It could not be disputed that running of a school falls within the scope of activities for which registration can be granted under Section 12AA of the Act. In fact, the similar activities carried out by Shishu Niketan Model School have been granted registration, which is running four institutions. The Society has been established to manage one of such schools. There cannot be any attempt of the assessee to evade tax liability, as Shishu Niketan Model School has been granted registration and availing the benefit of tax." 5. Learned counsel for the respondent supported the order passed by the .....

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