TMI Blog2017 (12) TMI 1165X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration u/s 12AA of the Act Also in the present case there is no allegation of utilizing the land for commercial purposes and also there is no allotment of land at concessional rates. It is an admitted fact that the assessee was engaged in charitable activities. In view of the above facts and circumstances of the case, the Ld. CIT(E) is directed to grant registration to the assessee u/s 12AA of the Act . - Decided in favour of assessee. - I.T.A .No.6511/Del/2014 - - - Dated:- 21-12-2017 - SMT. DIVA SINGH, JUDICIAL MEMBER AND SHRI. T. S. KAPOOR, ACCOUNTANT MEMBER For The Appellant : Sh. Kapil Goel, Adv For The Respondent : Ms. Shefali Swroop, CIT. DR ORDER PER T. S. KAPOOR, AM This appeal has been filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2014-15 and 2013-14 in the assessment orders, the Assessing Officer has admitted that the assessee was engaged in the running of School had also allowed exemption u/s 10(23C) iiiad of the Act. It was submitted that at the time of grant of registration, the Ld. CIT (E) is only required to enquire into the objects of the society and the genuineness of its activities with respect to achievement of those objects. It was submitted that admittedly the assessee is engaged into educational activities as it has been allowed Exemption u/s 10(23C(iiiad) of the Act and, therefore, it was argued that Ld.CIT(E) be directed to grant Exemption u/s 12AA of the Act. 4. The Ld. DR on the other hand submitted that it is wrong on the part of Ld. AR to clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of Ld. CIT(E) that the funds of the school were being diverted to the President of society are not correct and moreover the Assessing Officer during assessment proceedings could always verify these facts and if he is satisfied that there is diversion of funds he can deny exemption u/s 11 of the Act. As regards the case laws relied on by the Ld. DR, (it was submitted that in the case of DIT(E) Vs. Devki Devi Foundation 56 Taxmann.com 56 (Delhi-Trib.) the assessee was allotted land at very concessional rates and the Hon ble Tribunal had held that hospital on such land was being utilized for commercial purposes which is not the fact in the present case as the assessee has not been granted any land or building on concessional rate and there i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of Regional Educational Development and Welfare Society vide its order dated 4/10/2017 after following a number of cases decided by Hon'ble Supreme Court and various High Courts vide Para 6 to 9 has allowed the appeal of the assessee by holding as under:- 6. We have heard the rival submissions andhave also perused the material on record. It is an admitted fact that the assessee society exists for education purpose only which has been duly recorded in Para 2.3 of impugned order. Further, three consecutive orders passed u/sl43(3) of the Income Tax Act have accepted assessee s claim of exemption u/s 10(23C)(iiiad). Thus, there remains no doubt that the objective of the assessee society is education . The Hon ble Punjab Ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... precedent for claiming the benefits of exemption. No examination of the modus of the application of the funds of the assessee or an examination of the ethical background of its settlors is called for, while considering an application for registration. The stage for consideration of the relevance of the object of the assessee and the application of its funds arises at the time of the assessment. Where benefits are claimed by assesses in terms of sections 11 and 12 of the Act, the question as to the nature of such contribution and income can be looked into. At the time of registration of the assessee what is to be looked into is whether the assessee is a genuine one or whether it is a sham institution floated only to avail of the benefits of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied on by Ld. DR are not applicable to the facts and circumstances of the case as in the case of DIT(E) Vs. Devki Devi Foundation 56 Taxmann.com 56 (Delhi-Trib.), the assessee was allowed the land at very concessional rates and the assessee had utilized the land for commercial purposes where as in the present case there is no allegation of utilizing the land for commercial purposes and also there is no allotment of land at concessional rates. The second case law is also not applicable as in that case, it was held that the assessee did not carry any charitable activity where as in the present case it is an admitted fact that the assessee was engaged in charitable activities. In view of the above facts and circumstances of the case, the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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