9911796707
TMI Blog2018 (9) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... tration u/s. 12AA of the Act. 2. It may be relevant to notice the relevant facts. The assessee is a society registered under the Societies Registration Act, 1860 on 27.09.2007 (PB pg. 16), engaged in providing school education through an institution by the name 'Nirmal Sagar Public School', affiliated to the Central Board of Secondary Education, New Delhi (CBSE) since 2008, which (professional affiliation) stands last extended by it on 06.03.2014 for a period of five years (PB pgs. 86-89). Its' annual gross receipt being below Rs. 1 cr., it had been claiming exemption u/s. 10(23C)(iiiad) up to the previous year relevant to Assessment Year (AY) 2016-17 (PB pgs. 35-41). It applied for registration u/s. 12AA in anticipation of its' annual tur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 4. That the certificate of registration of Society had already been filed alongwith letter in response to the questionnaire, dated 5.6.2017 and, thus, the finding of the CIT (Exemptions) is not correct. 5. That the CIT (Exemptions) has failed to appreciate the fact that the Society had been running the School for the last few years and filing the Income Tax return and no adverse view has been taken by the department and, thus, the denial of exemption u/s. 12AA (1)(b)(ii) of the Income Tax Act 1961 is contrary to facts and circumstances of the case.' 3. We have heard the parties, and perused the material on record. 3.1 The ld. counsel for the assessee, Sh. Sudhir Sehgal, Advocate, was during hearing at pains to emphasize that both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's objects being a vital aspect of the grant of registration; the law postulating the satisfaction of the competent authority therewith. Reference in this context was also made by her to some sub-clauses of the Object Clause 3 (bearing the main objects) of the MoA, for which the society is formed, which read as under, and on that basis submitted that the assessee-society has mixed objects: '(iii) To erect construct, run and maintain the places of worship, Gurdwaras, Mandirs, Sarais, Langar Halls, Kirtan Halls, Public Places etc. for the welfare of general public, to safe guard and protect the scarcity of worship places. (v) To preach the social reforms and welfare according to the singings and teaching of religious saints. (vi) To a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be registered as both a religious and a charitable institution, i.e., where it's objects so warrant, though, without doubt, the decisions by the Hon'ble High Courts on this aspect would need to be examined, and stipulation/s, if any, in consonance therewith, made, of course after allowing the assessee proper opportunity to state its' case in the matter, who may, at its' liberty, amend its Charter to exclude some objects. Further, it is apparent from the impugned order that the ld. CIT(E) has not examined the MoA/bye-laws in-as-much as his order bears that out. His order cannot therefore be upheld. Registration, for which the satisfaction of the competent authority with the objects and genuineness of the activities is a prerequisite, does ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
