TMI Blog2018 (7) TMI 1726X X X X Extracts X X X X X X X X Extracts X X X X ..... see. - ITA No.6512/Del./2014 - - - Dated:- 27-7-2018 - SHRI R.S. SYAL, VICE PRESIDENT AND SHRI N.K. CHOUDHRY, JUDICIAL MEMBER For The ASSESSEE : Shri Kapil Goel, Advocate For The REVENUE : Smt. Meeta Singh, CIT DR ORDER PER N K CHOUDHRY, JUDICIAL MEMBER : The Assessee/Appellant has preferred the instant appeal on feeling aggrieved against the order dated 26.09.2014 impugned herein passed by the ld. CIT, Faridabad under section 12AA of the Income-tax Act, 1961 (hereinafter called as the Act ). The grounds of appeal raised by the assessee are as under :- 1. That on the facts and in the circumstances of case and in law, the ld. Commissioner of Income Tax has erred both on facts and in law in rejecting the application for grant of registration under Section 12A of the Income Tax Act, 1961. 2. That the CIT has wrongly dismissed the application for Registration u/s 12AA of the Income-tax Act, 1961, without giving appropriate opportunity for submitting the case and ignoring all merits of the case. 3. That the ld. CIT has also wrongly concluded that the aims objects of the Society are vague and unspecific. 4. That the ld. CIT has pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the list supplied are of wards of parents belonging to the economical weaker section. Also the prospectus of Sheetla Vidya Peeth submitted by the applicant society does not mention of any quota (or anything) about admission of the wards of parents belonging to the economic weaker section. 9. Keeping in view the aforesaid facts and circumstances, it is clear that the applicant failed to substantiate its claim that applicant's aims/objects and terms of memorandum are of the charitable nature and also failed to prove that the activities of the applicant Society are being carried out for furtherance of Aims and Objects contained in Memorandum of Association, in spite of enough opportunities afforded. 10. Looking into totality of facts and circumstances, the request of the applicant Society for registration u/s 12AA of the Income-tax Act, 1961 cannot be acceded to and the application in Form 10A is, therefore, rejected accordingly u/s 12AA(1)(b)(ii) of the Income-tax Act, 1961. 3. At the outset, our attention was drawn by the ld. AR for the assessee society that the same ld. CIT, in the case of Om Shiva Education Welfare Society vide order dated 26.09.2014 decl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal before the co-ordinate Bench at Delhi in ITA No.6511/Del/2014 and the co-ordinateBench vide order dated 21.12.2017 while allowing the appeal of the assessee society , directed to grant registration u/s 12A of the Act. The relevant findings of the co-ordinateBench in the aforesaid case are reproduced hereunder:- 6. We have heard the rival parties and have gone through the material placed on record. We find that at the time of grant of registration u/s 12AA of the Act, the Ld. CIT(E) is empowered to look into the objects of the society and also the genuineness of its activities with respect to achievement of those objects. In the present case, it is an admitted fact by the Assessing Officer who vide order dated 19/02/2016 for Assessment Year 2014-15 had admitted that the assessee was engaged in running of a school in the name of Marigold High School and has also allowed deduction u/s 10 (23C) (iiiad) of the Act. The Assessing Officer in Assessment Year 2013-14 vide order dated 9/12/2015 has also admitted the same fact had allowed exemption u/s u/s10 (23C) (iiiad) of the Act. By accepting the claim of Assessee the genuineness of its activities has also been accepted. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2AA of the Act that what is intended thereby is only a registration simplicitor of the entity of a trust. This has been made a condition 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 settlers 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 exemption under the Act. 8. Coming to the facts of the present case, the observations of the Ld. CIT in the impugned order are contradictory. The Ld. CIT, on the one hand, mentions that the assessee society has been running a school and on the other hand he mentions that the objects appear to exist only o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in the case of Om Shiva Education Welfare Society (ITA no. 6511/Del/2014, wherein the co-ordinate Bench considered the similar and identical issue and granted the registration to the society u/s 12AA of the Act. It is also a fact that the assessee society was subjected to assessment proceedings for A.Y. 2013-14, in which the AO vide order dated 21.12.2015 accepted the objects carrying out by the society, by observing that the assessee society is registered at Sl.No.501 of year 2003-04 with the Registrar of Society and is engaged in providing qualitative education by running institute in the name of Sheetla Vidya Peeth and R.K. College at Main Road, Jyoti Park, Gurgaon. The main sources of income of the assessee society are from student fees and interest received from bank and claimed deduction u/s 10(23)(c)(iiiad) of the Act being total receipt below ₹ 1 crore. Considering the assessment order dated 21.12.2015 relevant to AY 2013-14 as well as the orders passed by the co-ordinate Benches of the Tribunal, specifically in ITA No.6511/Del/2014 in the case of Om Shiva Education Welfare Society (supra) in which the reasoning of denial of registration by the Ld CIT was e ..... 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