GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (2) TMI 887 - ITAT DELHI

2016 (2) TMI 887 - ITAT DELHI - TMI - Eligibility of registration u/s 12AA - Held that:- It is now well settled that at the time of grant of registration u/s 12AA, the ld. Commissioner is required only to examine the objects of the society. A bare perusal of the objects of society makes it clear that the pre-dominant object of the society is to impart education. - Decided in favour of assessee

As we have directed for registration of society u/s 12AA in terms of observations the assess .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the Income-tax Act, 1961. Both the appeals were heard together and are being disposed of by a common order for the sake of convenience. ITA no. 4610/Del/2014 (U/s 12AA(1)(b)(ii): 2. Brief facts of the case are that assessee society moved application u/s 12A(1)(aa) of the I.T. Act for registration of the society along with necessary documents. 3. Ld. CIT while rejecting the assessee s application for registration has observed as under: 4. The applicant's reply does not satisfy the very es .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ces rendered. Fees cannot be voluntary and are, therefore, taxable under the head profit and gains of the business or profession. In fact, the fact is that the educational institutions run by the society in question charge whooping fees and earn systematic profit year to year to enhance its earning capacity through the acquisition of buildings & other fixed assets. 4. Ld. Commissioner further referred to the decision of Hon ble Uttrakhand High court in the case of National Institute of Aeron .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assessee s application for grant of registration u/s 12AA. 5. Ld. counsel for the assessee submitted that at the time of registration, ld. Commissioner is only required to look into the objects of trust and cannot go beyond the same. In this regard he relied on following decisions: - Saswat Chetna Educational Social Development Research Society Vs. CIT - ITA 5376/Del/2012 - Shivaji Vidya Peeth Education Society Vs. CIT - ITA no. 5377/Del/2012 - Shri Gian Ganga Vocational & Educational Societ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the donation / grants from the Government / semi- Government and to start the projects on public welfares . " 4. To create awareness about the social evils. " 5. To open crutches for the people in rural & urban areas. 6. To avail loans from the financial institutions / banks to construct the building of the Society . 7. The Society will promote the schemes, policies of the Government. 8. To encourage Education and Literacy and to start schools & colleges. 9. Society can work wi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

anti - national activities. 14. The society by its constitution is required to apply its surplus if any or other income for charitable purposes only. 7. Ld. counsel further referred to page 36 of the PB, wherein clause relating to dissolution of the society is contained in which it is, inter alia, stated that no assets of any of the society shall devolve on or distributed among the members of the society on dissolution. 8. Ld. counsel further referred to page 47 of the PB, wherein the assessee h .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he case of Saswat Chetna Educational Social Development Research Society (supra), after considering the decision of Hon ble High Court of Uttrakhand in the case of National Institute of Aeronautical Engineering & Educational Society (supra), has observed in para 4 as under: 4. We have considered the rival submissions and perused the material available on record. The facts in brief are that the assessee society moved application u/s 12A (1)(aa) of the Act in form no. 10A accompanied by the ac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssessee entertained the submissions of the assessee. The ld. Commissioner denied registration to the assessee on the ground that as per rule 17A(a) of the Income-tax Rules, 1962 the assessee was to submit the original instrument of its establishment together with the copy thereof and since the assessee has submitted only the photo copy/ certified copy of the instrument therefore the application was not complete and thus the application itself is not worth consideration for registration u/s 12AA .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

satisfied that the assessee is running a senior Secondary school, duly registered with CBSE and Board of School Education, Haryana. We have specifically perused the objects of the society, wherein the predominant object is imparting education. Therefore, we are not satisfied with the observation of the ld. Commissioner that the assessee society is not doing any charitable activity. The another reason for denying the registration by the ld. Commissioner is the reliance placed upon the decision fr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e application is made by the assessee in accordance with the requirement of the section read with Rule 17A and also whether form no. 10A has been properly filled up. He may also see whether objects of the assessee society are charitable or not as was held by the Hon ble High Court in the case of Fifth Generation Education Society vs. CIT 185 ITR 634 (All.). So long as the trust has education as one of its objects it has to be accepted that the trust is having a charitable purpose as its objects .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n from Hon ble Karnataka High court in the case of DIT Vs. Garden City Education Trust 191 Taxman 238 (Kar.). Even other wise registration u/s 12AA does not necessarily entitle the assessee to get the income excluded from the income of the previous year for the purposes of determination of tax liability, but it only entitle the assessee to claim such exemption, which otherwise could not be claimed in the absence of the registration. The case of the ld. Commissioner would have been on more sound .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version