TMI Blog2016 (2) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... red at the time of the assessment and decided accordingly. In the present case, we find that the Ld. Commissioner rejected the registration u/s 12AA of the Act without there being any justified reasons. After careful consideration of the entire facts and circumstances of the case and also keeping in view of the judgement of Hon’ble Karnataka High Court, we are of the opinion that assessee deserve to be granted registration u/s 12AA of the Act. Thus, we quash the order passed by the Ld. Commissioner and grant registration u/s 12AA of the Act to the assessee - Decided in favour of assessee - I.T.A.No.404/Vizag/2012 - - - Dated:- 8-1-2016 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER For The Appellant : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tives of members and Ms. Ratnamala (member) are drawing ₹ 6900/- per month from the society. He further observed that the assessee has not registered u/s 43(1) of the Andhra Pradesh Charitable and Hindu Religious Institution and Endowments Act, 1987. On the above observation he came to a conclusion that assessee has continued its violations and though the amended objects are charitable in nature, the activities of society are not genuine and rejected the registration u/s 12AA of the Act. 5. On being aggrieved assessee is in appeal before the Tribunal. 6. The Ld. Counsel for the assessee has submitted that the objects of the assessee society are only charitable in nature. This fact has been accepted by the Ld. Commissioner and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee society has given interest free advances to the HUF who are the sons of Sri Sama Suryanarayana Murthy (whose name trust is created) and also on the ground that some of the relatives and family members are drawing ₹ 6,900/- p.m. from the society. We find that the assessee society is existed only for imparting education and the same is accepted by the Commissioner. The assessee is paying regular rent to the HUF. In that connection, certain advances also paid. Simply because there is no written agreement, it cannot be said that the transaction is not genuine. The Ld. Commissioner rejected the registration u/s 12AA of the Act mainly on the ground that the Chief Commissioner has rejected the approval u/s 10(23C)(vi) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n on the ground of non-registration with the A.P. Charitable and Hindu Religious Institutions and Endowments Act is not correct. One more objection raised by the Commissioner that the family members of the HUF are governing body members of the society, we find that some of the members of the founders of the institution are members of the assessee society is not a ground for rejecting the registration u/s 12AA of the Act. In this context, the Hon ble Punjab Haryana High Court in the case of Commissioner of Income Tax vs. Baba Kartar Singh Dukki Educational Trust 221 Taxman 493 has held that fact that a trustee is life member, may be a relevant but cannot by itself lead to a finding that the Trust is not charitable. 9. The Hon ble Karn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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