TMI Blog2019 (5) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing within the definition education u/s 2(15) entitling the applicant company for registration u/s 12AA of the Act and consequent approval u/s 80G of the Act, hence both the appeals filed by the applicant company are allowed directing the CIT (E) to provide registration u/s 12AA to the assessee and grant consequent approval u/s 80G of the Act. - Decided in favour of assessee. - ITA No.527/Del./2017 And ITA No.528/Del./2017 - - - Dated:- 26-4-2019 - SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER For The ASSESSEE : Shri R.M. Mehta, AR For The REVENUE : Smt. Nidhi Srivastava, CIT DR ORDER PER KULDIP SINGH, JUDICIAL MEMBER : Since common questions of facts and law have been raised in both the aforesaid appeals, the same are being disposed off by way of composite order to avoid repetition of discussion. 2. The Appellant, Escorts Skill Development (hereinafter referred to as the assessee/applicant ) by filing the present appeal sought to set aside the impugned orders both dated 29.12.2016 passed by the Commissioner of Income-tax (Exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee company in Form No.10A and 10G for registration under section 12AA of the Income-tax Act, 1961 (for short the Act ) and approval u/s 80G of the Act respectively have been rejected by the ld. CIT on the grounds inter alia that the primary aim for forming the company by the assessee/applicant u/s 8 of the Companies Act, 2013 is merely to comply with the requirement of Corporate Social Responsibility (CSR); that the company has been formed to implement the CSR activities of financing/parental company; that the composition of applicant company is restricted and to that extent is not amenable to the public charity; that it does not ensure to have been formed to extend benefit to the general public and as such, does not partake the meaning of public charitable company; that there is no rationale for seeking further exemption on the basis of some activities when the skill development activities undertaken by the applicant are already subsidized by the Government of India and that the activities of training also do not fall under any limb of charitable activities defined u/s 2(15) of the Act. Consequently, the ld. CIT (E) also declined the approval u/s 80G of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubjects and branches of all types of disciplines/faculties such as commerce, hardware, software, computers, science, arts, business management, engineering, science medical industrial, pharmacy, mining, military, music, dance, acting, sports, journalism, and any other field of education and to act as advisors, consultants, promoters, partners or associates for such business and to get affiliated/associated with Indian and/or Foreign Universities, institutes, colleges and grant degrees/diplomas etc on behalf of such affiliated institution, to provide learning solutions and to achieve the object to establish and run educational institutions, and to conduct practical practices/workshops thereof including distance learning programs with or without electronic media or E-business help and to grant franchise of and to run and set up all support facilities for such students including hostels, canteens, mess, enjoyment and recreational facilities and/or to act as advisors, consultants for setting up such institutes/classes and business as may be incidental or necessary for the achievement of the above object. ( B) The objects for doing of all such other lawful t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany on its own or through a Trust/ Society/Company registered u/s 8 of the Companies Act, 2013 and relied upon the decisions of (i) Nanak Chand Jain Charitable Trust vs. CIT (E), Chandigarh (2018) 91 taxmann.com 197 (Delhi-Trib.); (ii) Process-cum-Product Development Centre vs. Addl. CIT (2019) 103 taxmann.com 191 (Delhi-Trib.); (iii) CIT, Faridabad vs. IILM Foundation Academy (2016) 75 taxmann.com 214 (P H); (iv) CIT (E), Chandigarh vs. Shri Shirdi Sai Darbar Charitable Trust (Dharamshala) (2017) 81 taxmann.com 49 (P H); and (v) Director of Income-tax (E) vs. M/s. Group Vocational Training Centre Trust in ITA No.199/2015 . 10. However, on the other hand, ld. DR for the Revenue relied upon the order passed by the ld. CIT (E) and contended that charitable activities under the garb of CSR activities are mere camouflage to get the registration u/s 12AA and 80G of the Act. 11. By now, it is settled principle of law and fact that CSR activities are public charitable activities per se, which fact is also evident form section 8 of the Companies Act, 2013. At the same time, when we examine the aims and objects of the applicant company in totali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18) 91 taxmann.com 197 (Delhi-Trib.) . 16. Ld. CIT (E) was only required to firstly satisfied himself if the trust has been established for charitable activities and its activities are genuine for the purpose of grant of registration u/s 12AA of the Act, rest of the suspicion and apprehensions raised by the ld. CIT (E) can be taken care of by the Revenue at the time of framing assessment. Moreover, the ld. CIT (E) declined the registration merely on the basis of assumptions and presumptions. 1. Following the decision rendered by the coordinate Bench of the Tribunal in case cited as Nanak Chand Jain Charitable Trust vs. CIT (2018) 91 taxmann.com 197 (Delhi-Trib.) and case decided by Hon ble High Court of Punjab Haryana in CIT vs. IILM Foundation Academy (2016) 75 taxmann.com 214 (P H) , we are of the considered view that imparting skill development training , by the applicant company which is also a flagship project of the Government of India for sustaining its growth rate and to create the pool of skill worker to further enhance its growth and development is a charitable activity following within the definition education u/s 2(15) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
