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2015 (11) TMI 811 - ITAT DELHI

2015 (11) TMI 811 - ITAT DELHI - TMI - Eligibility for grant of registration u/s 12AA - CIT(A) rejected the registration under Section 12AA of the Act primarily on the ground that the jurisdiction of the case does not vest with him and the proviso to Section 2(15) of the Act is applicable and the assessee society failed to furnish full details of the corpus fund - Held that:- It is undisputed fact that the appellant society filed the returns of income with the Income Tax Officer (Exemption), Roh .....

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tion raised by the CIT is rejected and it is worthwhile to mention here that the learned CIT(DR) fairly conceded before us that this objection does not hold water.

Commissioner is only entitled to examine whether the objects of the institutions are charitable or not. Once the objects of the institutions are found to be charitable, the Commissioner has no option, but to grant registration. In the present case the Commissioner has not found that any objects of the trust are not charitab .....

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irect the Commissioner of Income Tax, Rohtak, to grant registration to the appellant society within a period of 30 days from the date of receipt of this order. Accordingly, the grounds of appeal filed by the appellant society are allowed in full. - Decided in favour of assessee. - ITA No. 5712/Del/2013 - Dated:- 28-10-2015 - SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SMT. SUCHITRA KAMBLE, JUDICIAL MEMBER Appellant by : Sh. Navin Gupta, Adv. Respondent by : Smt. Nandita Kanchan, CIT(DR) ORDER PE .....

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conditions for registration and all the objects and activities of the Society are eligible for grant of registration u/s 12AA of the Act. iii. That the appellant craves leave to add or alter any Ground of Appeal. 2. The brief facts of the case are that the appellant society was registered on 17th March, 1995 vide Certificate No. 83 of 1995 under the Societies Registration Act with the Registrar of Firms & Societies, Shimla, Himachal Pradesh. The appellant society filed an application for re .....

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ull details of the corpus fund of ₹ 15,25,000/-. Being aggrieved the appellant is before us with the present appeal. 3. Ld. counsel for the appellant society vehemently argued that the Commission of Income Tax had gone beyond his jurisdiction by calling the details of corpus donations and rejecting the application for registration under Section 12AA of the Act. He further submitted that the Commissioner of Income Tax while examining the application for registration under Section 12AA of th .....

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DR) vehemently argued that the appellant society had not complied with the direction of CIT to furnish the details of donors of corpus funds and therefore, the CIT had no opportunity for examining the genuineness of the activities of the appellant society. Therefore, she prayed that the matter may be restored back to the file of the CIT for fresh examination of this issue. 5. We heard the rival submission and perused the material on record. In the present appeal, we are required to adjudicate wh .....

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ety filed the returns of income with the Income Tax Officer (Exemption), Rohtak. We also find from the paper book that the Deputy Commissioner of Income Tax, Rohtak, Circle - Rohtak, had issued scrutiny notice under Section 143(2) of the Act dated 22nd September, 2014 for the assessment year 2013-14. Therefore, it is the Commissioner of the Income Tax, Rohtak, who had valid jurisdiction for the appellant society. The jurisdiction of Commissioner of Income Tax is always determined with reference .....

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ors of the corpus funds. The scope of the power of Commissioner of Income Tax while granting the registration under Section 12A of the Act was examined by the Hon ble Allahabad High Court in the case of Fifth Generation Education Society Vs. CIT, 185 ITR 634, wherein it is held that at the stage of grant of registration under Section 12A of the Act, the Commissioner may examine, whether the application is made in accordance with the requirement of Section 12A , whether the form has been properly .....

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the case may be, he must obtain registration under section 12A. The application for registration under section 12A has to be made in Form No. 10A prescribed by rule 17A before expiry of one year from the date of the creation of the trust or the establishment of the institution, whichever is later. It has to be made by the person in receipt of the income of the trust. 3. It is evident that at this stage, the Commissioner is not to examine the application of income. All that he may examine is whe .....

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. The Commissioner has also observed that no activity has been carried out by the society. It is also not the requirement of section 12A nor section 80G has any relevance at this stage. The impugned order cannot, therefore, be sustained and is quashed. Similarly, the Hon ble Punjab & Haryana High Court in the case of CIT Vs. Surya Education and Charitable Trust, (2013) 355 ITR 280 (P&H) held that the objects of the provisions of Section 12AA of the Act is to examine the genuineness of th .....

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total income, but the basis of such benefit is the registration under Section 12AA of the Act. Unless a Trust or Institution is registered under Section 12AA of the Act, such Trust or Institution shall not be entitled to exclude from its total income, deductions or contributions or from other sources. Therefore, the principles laid down for excluding the income from consideration under Section 10(22) now 10(23)(C) or Sections 11 and 12 are not applicable while considering the application for re .....

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el the registration if the activities of the Trust are not carried out in accordance with such objects. 11. Therefore, the object of Section 12AA of the Act, is to examine the genuineness of the objects of the Trust, but not the income of the Trust for charitable or religious purposes. The stage for application of income is yet to arrive i.e. when such Trust or Institution files its return. Therefore, we find that the judgments referred to by the learned counsel for the appellant are not applica .....

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