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TMI Blog2011 (8) TMI 1136X X X X Extracts X X X X X X X X Extracts X X X X ..... viding education and medical relief etc. to the weaker sections of the society. The trust has set up an engineering college. Vide communication dt. 8th Feb., 2002, CIT required the respondent to give details with regard to the admission procedure and also to state whether in the college run by the respondent, free education would also be imparted. The respondent submitted a reply to the aforesaid communication vide letter dt. 6th March, 2002. The respondent trust filed an application for registration under s. 12A of the IT Act, 1961. The CIT vide order dt. 15th March, 2002 inter alia held that since the rules and regulations of granting admission/education facilities have not yet been decided therefore, it is not clear as to whether there w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Sanjay Lal learned counsel for the Revenue submitted that finding recorded by the appellate authority i.e. the Tribunal is based on additional evidence. Rule 29 of the Rules framed under the Act provides that the reasons have to be recorded by the authority while permitting additional evidence to be adduced. It was also submitted that the Tribunal erred in relying on Madhya Pradesh Madhyam vs. CIT & Anr. (2002) 175 CTR (MP) 92: (2002) 256 ITR 277(MP) as the ratio laid down in the aforesaid case had no bearing on the controversy involved in the appeal pending before the Tribunal. It was also urged that as the additional evidence was permitted to be adduced, the matter should have been remanded by the Tribunal. It was further submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion run by the respondent-trust was not required to be gone into. The CIT while dealing with the application did not properly appreciate the scope and ambit of s. 12A of the Act. In support of his submissions, learned senior counsel has placed reliance on the decisions rendered in the cases of Ahmedabad Rana Caste Association vs. CIT (1971) 82 ITR 704(SC); CIT vs. Red Rose School (2007) 212 CTR (All) 394: (2007) 163 Taxman 19(All); New Life in Christ Evangelistic Association (NLC) vs. CIT (2001) 165 CTR (Mad) 446: (2000) 246 ITR 532(Mad); Fifth Generation Education Society vs. CIT 135 ITR 634(sic); Trustees of The Tribune, In re (1939) 7 ITR 415(PC); Fifth Generation Education Society vs. CIT (supra) and Shantagauri Ramniklal Trust & Ors. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corded in writing, satisfied that the person in receipt of the income was prevented from making the application before the expiry of the period aforesaid for sufficient reasons; (ii) Where the total income of the trust or institution as computed under this Act without giving effect to the provisions of s. 11 and s. 12 exceeds fifty thousand rupees in any previous year, the accounts of the trust or institution for that year have been audited by an accountant as defined in Explanation below sub-s. (2) of s. 288 and the person in receipt of the income furnishes along with the return of income for the relevant assessment year the report of the such audit in the prescribed form duly signed and verified by such accountant and setting forth such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expiry of six months from the end of the month in which the application was received under cl. (a) or cl. (aa) of sub-s. (1) of s. 12A. (3) Where a trust or an institution has been granted registration under cl. (b) of sub-s. (1) and subsequently the CIT is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution as the case may be, he shall pass an order in writing cancelling the registration of such trust or institution : Provided that no order under this sub-section shall be passed unless such trust or institution has been given a reasonable opportunity of being heard." 8. Sec. 12A of the Act prescribes conditions for registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of the Allahabad High Court rendered in the case of Red Rose School (supra) and the decisions in the cases of New Life in Christ Evangelistic Association (supra), Fifth Generation Education Society (supra) and Shantagauri Ramniklal Trust (supra). 9. In the backdrop of aforesaid legal position facts of the case may be seen. Admittedly the application submitted by the respondent was in consonance with the procedural requirement prescribed in this regard. From the trust deed which was filed before the CIT the objects of the trust could be ascertained. From perusal of cl. (3) of the trust deed we find that the objects of the trust are charitable in nature and are in tune with s. 2(15) of the Act and, therefore, the Tribunal rightly op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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