TMI Blog2021 (9) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... nwani, CIT-DR ORDER PER RAJPAL YADAV, VICE-PRESIDENT: ITA No.2935/Ahd/2014 is directed at the instance of the assessee against order of the ld.DIT(Exemptions), Ahmedabad dated 29.9.2014 vide which application of the assessee for grant of registration under section 12AA of the Income Tax Act, 1961 has been rejected. ITA No.643/Ahd/2018 is directed by the assessee against order of ld.CIT(A)-7, Ahmedabad dated 4.12.2017 passed for the Asstt.Year 2014-15. First we take ITA No.2935/Ahd/2014 for adjudication. 2. Grievance of the assessee is that the ld.DIT(Exemption) has erred in rejecting its application for grant of registration under section 12AA of the Act. 3. Brief facts of the case are that the assessee-trust has filed an application for registration under section 12AA of the Act in form no.10A which was received in the office of DIT(Exemption) on 29.3.2014. The stand of the assessee was that it was created under deed of settlement on 15.9.1987. It got registered under Bombay Trust Act vide registration no.E-6844/Ahmedabad. According to the assessee, it was registered under section 12A of the Income Tax Act vide order No.HQ.III/179 dated 2.3.1988. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Y.2013-14. The Tribunal in its order dated 29.6.2020 has followed order of the Co-ordinate Bench in ITA no.993/Ahd/2017. He thereafter brought to our notice certain other decisions viz. Akash Educational Society Vs. JCIT, Noida rendered in ITA No.6391 6392/Del/2017. Copies of head-notes of these decisions have been placed on record. Similarly, copy of decision in the case of Krishna Charitable Society Vs. ACIT, Ghaziabad rendered in ITA No.4639/Del/2015 has been placed on record. He further relied upon the decision of Hon ble Karnataka High Court in the case of CIT Vs. Karnataka Lingayat Education Society wherein identical issue arose before the Hon ble High Court. He also relied upon the decision of Hon ble Kerala High Court in the case of Unity Hospital P.Ltd., Vs. State of Kerala and others wherein hostel building was considered as a building meant for educational activities. 6. On the other hand, the ld.DR relied upon the order of ld.DCIT(Exemption) and submitted that the ld.DIT(Exemption) has made reference to the order of ITAT, Chennai in the case of Young Women s Christian Association of Madras, 41 taxamnn.com 142. Relevant part of this decision has been reproduced by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r teachers as well as fellows during hostel stay. It enriches understanding of the curriculum through analytical discussion amongst the students living in the hostels, and may contribute to character building as well. Students in hostel not only learn the theoretical material, they also learn how to enhance their personal abilities and learn to live independently. Hostel life has an impact upon the behavioral as well as personality development of students. It is one of the essential components of an educational institution. Some of the institutions like IITs, Medical Colleges provide compulsory stay in the hostel. Thus, how the AO can segregate this component from the concept of education provided in the main provision of section 2(15) ? If it is accepted that hostel is just an essential part of educational institution, then all that discussions made by the AO would be irrelevant. The simple reason is that assessee-trust came into existence in the year 1947. It has been providing hostel facilities for more than 60 years. It has always been treated as a charitable institution. In the assessment year 2010-11 a scrutiny assessment was made. Its status of charitable institution was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee is entitled for benefit of sections 11 and 12 of the Income Tax Act. If the assessee is entitled for benefit of sections 11 and 12, then the amount spent from the corpus fund for construction of building is also to be looked into with that angle. We set aside both the orders of the Revenue authorities and restore this issue to the file of the AO. The ld.AO shall redetermine taxable income of the assessee and after providing benefit under sections 11 and 12. 7. There is no disparity on the facts. The assessee-trust came into existence in 1987. In the past, it has been treated as trust engaged in providing education. According to the assessee, it was granted registration under section 12AA also. The department should have verified from its record whether registration number referred by the assessee in its reply i.e. HQ-III/179 dated 2.3.1988 is a correct reference or not. If it was a correct reference then they should have continued with registration unless it is cancelled. Since registration certificate was not possessed by the assessee, therefore, it was applied afresh. This fact could be verified by the department with record maintained by it. Leaving apart this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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