TMI Blog2019 (6) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... n education in Haryana, to prepare buildings, hostels, sports ground and library for institutes of society. The Commissioner of Income Tax, at no point of time has pointed out that the applicant society is not doing these activities. The case laws referred by the Ld. AR are apt in the present case. Thus, CIT has not followed the proper guidelines given by Section 12AA when should be applied. Therefore, we are of the opinion that registration should have been granted u/s 12AA to the Applicant Society as the objects are charitable in nature and as there are no violations of either sec. 11(5) or Sec. 13 during this year or in the next year and possibility of the applicant society contravening the provisions is not a ground to reject the reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nceived. 4. That further finding that such facilities cannot be extended to entities that have mis-utilized the provisions of the Act that accord something akin to automatic approval to entities professing to exist solely for education and not for profits and have in the barraging accorded benefits to its members in the shape of luxury items is not based on correct appreciation of facts, provisions of law and hence untenable. 5. That mere holding of cars by charitable trust cannot be a ground to deny a registration u/s 12AA of the Act. 6. That the learned Commissioner of Income Tax (Exemptions) has erred both in law and on facts in sustaining the denial of exemption u/s 11 and 12 of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of the society. The Commissioner further observed that the activities of the applicant got severely compromised when a society professing to be charitable is seen to utilize its receipt on assets of luxury of personal use that in no manner can qualify for the benefit of general public. 4. Being aggrieved by the order dated 31/08/2017, the assessee filed appeal before us. 5. The Ld. AR submitted that the assessee society was constituted under a Society Registration Act, 1860 on 26/03/1989. Revised certificate of Registration u/s 9(4) of the Haryana Registration and Regulation of Societies Act, 2012 was issued on 30/08/2013. On 23/02/2017 application for registration of charitable or religious trust u/s 12A (a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TTJ 127 (Del) Shavak Shiksha Samiti Vs. CIT ITA No. 5009/Del/2007 M/s Aggarwal Sabha Meham Vs. CIT(A) 27 SOT 331 (Del) Shri Krishna Education and Welfare Trust vs. CIT(A) 212 CTR 394 (All) CIT v. Red Rose School 330 ITR 480 (Kar) DIT v. Garden City Educational Trust 340 ITR 322 (Del) DDDIT v. Shanti Devi Progressive Education Society 127 ITD 164 (Del) O.P. Jindal Global University v. CIT 68 SOT 433 (Delhi) Meritta Welfare Trust v. CIT 212 CTR 394 (All) CIT vs. Red Rose School 9 SOT 636 (Bom) St. George Educational Trust vs. DIT[E] 13 SOT 54 (Del) (URO) Acharya Sewa Niyas Uttaranc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tees is entitled to benefit of surplus and surplus is utilized for promotion of objects of the trust. Therefore, exemption cannot be denied. The Ld. AR submitted that both during the existence of society and on dissolution of the society, the income and property shall be applied towards the object of the society and no fund shall be distributed/transferred directly /indirectly to the member of the society. Thus, the Ld. AR submitted that the order of the Commissioner of Income Tax (Exemptions) be quashed and direct the Commissioenr to grant registration to the applicant society u/s 12AA of the Act. 7. The Ld. DR submitted that despite giving adequate opportunity, the applicant did not furnish details called for by the CIT (E) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties and perused the material available on record. The Ld. DR s submission that no details were filed regarding computation of income to verify eligibility of assessee u/s 10(23C)(vi) of the Act. But the requirement of Section 12AA registration is only to the extent that the Commissioner has to satisfy himself about the objects of the trust or institution and the genuineness of its activities. Further, it is of great importance that the activities of such institutions be looked at carefully whether the activities are genuine or not. The Revenue authorities also have to look into the said activities whether the same are carried out in accordance with law or not. In the present case, the applicant society is not deviating f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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