TMI Blog2017 (10) TMI 1513X X X X Extracts X X X X X X X X Extracts X X X X ..... ies as per the order of the ld. CIT were housewives at the time of formation of the Trust however their qualification and experience has not been doubted. Salary paid to the two ladies are much less than the salary prescribed by the Government of Haryana. Therefore, it cannot be said that the Trust by giving salary to the two ladies, who are Post- Graduates and B. Ed. and who have been paid less salary than the amount prescribed by the Government, has used the funds of the society for the benefit of the members of the society. So far as the objection of the AO that the assessee trust has violated the provisions of section 40A(3) is concerned, the same is in our opinion can be taken care at the time of assessment and cannot be a ground fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anand Shiksha Prasar Samiti was registered with the Registrar of the Societies on 17.07.2002 which got renewed under the Haryana Registration Regulation of Societies Act, 2012 on 06.11.2013 with the Distt. Registrar, Firms Societies, Panipat. An application for registration u/a 12AA was filed before the CIT in Form No.10A on 20.01.2014. During the course of hearing of the registration, ld. CIT examined the activity of the assessee as per its Memorandum of Association. He also examined the various details filed by the assessee society from time to time. From the details furnished by the assessee society, ld CIT observed that the members of the assessee society are drawing higher salary as compared to the prevalent rates, which has no jus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. CIT is in violation of provisions of section 13(1)(c). In view of the above, the ld. CIT rejected the application for registration u/s 12AA on the ground that the objects of the society/trust and the genuineness of the activities could not be proved satisfactorily by the assessee. 3. Aggrieved with such order of the CIT, assessee is in appeal before the Tribunal by raising the following grounds :- 1.) That on the facts in the circumstances of the case Learned CIT has erred in refusing to grant Registration u/s 12AA of the I.T. Act, 1961. The appellant society is a genuine charitable society liable to Registration as applied for. 2.) That The Trustees have not taken undue advantage or benefit from the society. 3.) That ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith salary of ₹ 6,000/- per month. Referring to page 9 of the Paper Book, which contains the list of persons or list of staff with their qualification and salary, he submitted that merely because the occupation of the ladies had been shown as housewife at the time of registration the same cannot be a ground to deny registration on being appointed as teachers and paid salary commensurate with their qualification. He submitted that denial of registration u/s 12AA by ld. CIT under the facts and circumstances of the case is unjustified since the assessee trust is imparting education and the objects of the society has not been proved to be non-charitable in nature. 5. Ld. DR on the other hand heavily relied on the order of the ld. CIT. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent and cannot be a ground for denying the registration u/s 12AA of the I.T. Act. So far as the objection of the Assessing Officer in his report that the activities of the assessee society are not in accordance with the objects as per the aims and objects in the Memorandum of Association is concerned, we do not find any activity carried out by the trust which is not in accordance with the aims and objects of the assessee trust. Even report of the Assessing Officer that the assessee has claimed corpus for donation of ₹ 3,41,000/- towards construction of building whereas the same were found to be regular donation and, therefore, there is violation in provisions of section 13(1)(c) is concerned, the same also in our opinion can be consid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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