TMI Blog2015 (11) TMI 1124X X X X Extracts X X X X X X X X Extracts X X X X ..... 2015 - SH. INTURI RAMA RAO, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIA MEMBER For The Appellant by : Sh. Naveen Gupta, Adv. For The Respondent by : Sh. H.K. Choudhary, CIT(DR) ORDER PER INTURI RAMA RAO, A.M.: ITA No. 2285/Del/2015 The present appeal filed by the assessee society is directed against the order of Commissioner of Income Tax (Exemptions), dated 30.03.2015 passed under Section 12AA of the Income-tax Act, 1961 (for short the Act ) denying the registration of the assessee society under Section 12AA of the Act. The appellant society raised the following grounds of appeals: i. That the order of Ld. CIT is against the law and facts. ii. That the ld. CIT erred in rejecting the application of the assessee for registration u/s 12AA although Society fulfills all the 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 of the Ground of Appeal. 2. The brief facts of the case are that the appellant society was registered under the Societies and Registration Act on 8th September, 1999 with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and addressing some of the social evils, such as, female foeticide, dowry, extravagant expenditure on social functions like marriages empowerment of women in decision making etc. 19. 18 To take up programmes for accelerating the pace of rural development with application of science and technology (techniques and technologies for cost reduction, improving productivity, etc.) especially in the field of water conservation, sanitation, low-cost housing, agriculture and animal husbandry and engineering sources. 20. To take up programmes for ensuring protection of environment and for regeneration of natural resources degraded due to past neglects. 21. Promotion and extension of appropriate technology including systems having renewable sources of energy. 22. To take up programmes in which science and technology may have major role in improving life, working conditions and opportunities for gainful employment of women. 23. To undertake impact evaluation of economic and social projects. 24. To work for promotion of health care activities. 25. To raise or acquire funds or property from Central Government, State Government, Non-government agencies, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered opinion, this is not relevant consideration at the time of grant of registration. It is the issue to be examined during the course of assessment proceedings after grant of registration under Section 12AA of the Act. In this connection, it is relevant to mention that one of us (Hon ble Accountant Member) is author of the order in the case of Paramount Public School Education Society Vs. CIT, in ITA No. 5712/Del/2013, dated 28.10.2015, wherein it was held that the registration cannot be denied by examining the issues which are relevant for the assessments. The relevant paragraphs of the aforesaid order are reproduced as under: 5. We heard the rival submission and perused the material on record. In the present appeal, we are required to adjudicate whether the Commissioner of Income Tax, Rohtak was justified in rejecting the application for registration under Section 12AA of the Act or not. The Commissioner of Income Tax had rejected the application primarily on two grounds. The first ground relates to the jurisdiction of the case, according to ld. CIT, jurisdiction of the case did not lie with him. First of all, we shall deal with the first objection raised by the CIT. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 whether the application is made in accordance with the requirements of section 12A read with rule 17A and whether Form 10A has been properly filled up. He may also see whether the objects of the trust are charitable or not At this stage, it is not proper to examine the application of income. 4. The order impugned does not say that the objects of the society are not charitable in nature; it merely says that they are general in nature. Just because they are general, they do not cease to be charitable. 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 genuin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered as genuine trust. If the activities of the institution are taxable for any reason the matter to be considered at the time of assessment. The source of income cannot be questioned at the time of granting the registration under Section 12AA of the Act. 7. The ratio that can be culled out from the above decisions is that the 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 charitable in nature. The objections raised by the CIT that the appellant had failed to comply with the direction of the Commissioner of Income, Rohtak to file the details of donors of corpus funds and the institution was collecting the fees from the students are not relevant considerations at the time of grant of registration under Section 12AA of the Act. These are the issues to be examined during the assessment proceedings after grant of the registration under section 12AA of the Act. Therefore, we direct the Commissioner of Income Tax, R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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