TMI Blog2015 (11) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... ct are satisfied, the CIT(A) cannot deny the registration on extraneous conditions. - Decided in favour of assessee. - I.T.A.No.67/Vizag/2014 - - - Dated:- 30-9-2015 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER For The Appellant : Shri C. Subrahmanyam, AR For The Respondent : Shri Ch. Omkareswar, CIT(DR) ORDER PER V. DURGA RAO, Judicial Member: This appeal by the assessee is filed against the order of the CIT, Rajahmundry dated 28.11.2013. There is a delay in filing the appeal for 26 days. The Ld. Counsel for the assessee filed an application for condonation of delay and submitted that the delay in filing of the appeal is not intentional and it is beyond his control. On the other hand, the Ld. D.R. objected for the condonation of delay. We have heard both the sides, perused the records and we find that there is a justified reason for non-filing of the appeal within a time and therefore, there is a delay of 26 days. We find it is a genuine case to condone the delay. Accordingly, delay is condoned. 2. Facts are in brief that the assessee society namely Srinivasa Educational Society filed an application for registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to produce confirmatory letters in respect of all unsecured loans taken. The society failed to furnish the evidences in respect of management advance and to explain as why the unsecured loans were transferred as management advance. The society repeatedly amended its amendment clause dissolution clause and not properly worded and not endorsed by the Registrar of Societies. The society did not produce receipts for corpus donation as no such receipts were issued to the alleged donors. The society did not register itself with the Chief Commissioner of Income-Tax u/s 10(23C) of the I.T. Act even though its receipts for the financial year exceeded ₹ 1 crore. As such the genuineness of the activities has not been proved. In view of the foregoing discussion, the application in Form No.10A dated Nil filed by the society on 14.5.2013 for registration u/s 12AA of the I.T. Act is not maintainable and is hereby rejected. 4. On being aggrieved, assessee filed an appeal before the Tribunal. The Ld. Counsel for the assessee has submitted that the assessee society is committed for the education and running various institutions. The Commissioner without considering the objects of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. Commissioner doubted the genuineness of the assessee s society to grant registration u/s 12A of the Act and submitted that the Ld. Commissioner rightly rejected registration u/s 12A of the Act. He also submitted that the assessee is not able to place any material on record to substantiate his case that assessee is carrying charitable activities except free education to the 3 students. He also pointed out that when the assessee started functioning in the year 2004, why registration is required u/s 12A for the assessment year 2013-14. From the assessment order he has pointed out that the A.O. has observed that assessee is running the business of education. Therefore, assessee is not entitled for the registration u/s 12A of the Act. The Ld. D.R. to support his arguments relied in the case of CIT Vs. Queens Educational Society St. Pauls Sr. Secondary School 319 ITR 160 (Uttarakhand). He also relied on the order of the Tribunal in the case of Vodithala Education Society Vs. ADIT (Exemptions) II, Hyderabad (2008) 20 SOT 353. 6. We have heard both the sides, perused the records, gone through the orders of the authorities below. The assessee i.e. Srinivasa Educational Society ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re. If the promoters of the assessee society donated certain funds relating to assessment year 2011-12 if at all the source is required to explain, it has to be examined by the Assessing Officer in that relevant assessment year once the assessing officer has considered the funds donated by the promoters of the society and assessment was completed u/s 143(3) of the Act, in our opinion it is not a subject matter for the Commissioner to call those details and rejecting claim of the assessee u/s 12A of the Act. We further observed that when the assessee filed an application for registration u/s 12A of the Act, the Commissioner at this time of granting registration u/s 12A of the Act, he has to see that whether the objective of the trust are charitable or not and genuineness of the activities carried out by the assessee society. In the present case, the Commissioner has not doubted the activities carried by the society. In fact the assessee society running only educational institutions. It is not the case of the Commissioner that in the name of the education assessee s society is doing other than the education. So far as another objection raised by the Commissioner with regard to that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has gone beyond the scope of the Act and rejected the claim of the society on the ground that unsecured loans given by the promoters relating to assessment year 2011-12 not explained properly. In the case of R.K. Educational Society, Machilipatnam Vs. CIT, Vijayawada in ITA No.369/Vizag/2012 dated 4.3.15 of Visakhapatnam bench has considered the similar issue and has observed that the registration u/s 12AA of the Act cannot be denied to the educational institutions because it is otherwise eligible for exemption u/s 10(23C) of the Act. Furthermore, the ITAT Hyderabad bench has consistently expressed the view that an educational institution can avail exemption either u/s 10(23C) or 11 of the Act if the conditions imposed under those provisions are satisfied. Moreover, the time of granting registration u/s 12AA of the Act, the CIT(A) has to look into the objects of the society and genuineness of the activities. As can be seen, there cannot be any doubt that one of the objects of the society is to impart the education and for achieving that object assessee has established an educational institution and imparting the education. Therefore, there cannot be any doubt with regard to charita ..... X X X X Extracts X X X X X X X X Extracts X X X X
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