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TMI Blog2024 (5) TMI 1077X X X X Extracts X X X X X X X X Extracts X X X X ..... eal (in ITA No. 2349/Ahd/2017) for A.Y. 2013-14 pertains to quantum addition made by the Assessing Officer on account of denial of exemption under Section 11 of the Act, on the ground that the assessee did not have the requisite registration under Section 12A of the Act. We shall first deal with assessee's appeal in ITA No. 2311/Ahd/2017, which is against denial of registration to the assessee under Section 12AA of the Act. 3. At the outset, we observe that the appeal of the assessee in these two appeals against order denying registration under Section 12A of the Act and denial of registration under Section 80G of the Act is time barred by approximately 4½ years. The assessee filed application for condonation of delay, in which it was submitted that the delay in filing appeal against the order denying registration to the assessee / applicant trust was on account of delay by the accountant of the assessee. Before us, the Counsel for the assessee submitted that the first time the assessee / applicant trust realized that the registration under Section 12AA of the Act had been denied to the assessee was when the assessment for A.Y. 2013-14 was concluded and the assessee was in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2AA of the Act and under Section 80G of the Act. 5. We have heard the rival contentions and perused the material on record. 6. We observe that the assessee is a Trust carrying out educational activities on residential basis in remote part of villages. The assessee has been registered with the Charity Commissioner on 01.11.2004 the assessee has been granted provisional registration on the identical set of facts for A.Y. 2022-23 and A.Y. 2024-25 as well. Further, from the contents of the Affidavit filed by the accountant, it is seen that the assessee was operating in remote part of the village with only one accountant, who was working on a part time basis. In the case of Collector Land Acquisition, Anantnag vs. MST Katiji and others, 1987 SCR (2) 387 the Supreme Court held that it is well established that rules of procedure are handmaid of justice. When substantial justice and technical considerations are pitted against each other, the cause of substantial justice deserves to be preferred. Accordingly, we are of the considered view that looking into the instant facts there is no mala fide intention in filing appeal against the order denying grant of registration under Section 12AA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imparting education. The Counsel for the assessee submitted that the assessee is operating educational institution in remote villages on residential (Hostel) basis. It was for this reason that the assessee was collecting fees towards hostel expenses and corresponding expenditure was also incurred by the assessee / applicant trust towards running and providing meals in this hostel. The location of the trust is 35 km. away from Baroda and is in the village near Taluka - Karjan, District : Vadodara. As a matter of policy the school only admits only male students and therefore, the registration / admission of students is on the lower side. As the very basic name of the trust (Tapovan Education Trust) suggests, the trust is formed with the object to educate the students who will stay at the premises for 7 years, and along with life oriented education, they will also get degree oriented education. The trust is running Government approved education classes from standard 4th to standard 10th and for that purpose it is running a non-subsidized Government approved education and residential school and with keeping that object in mind, the assessee trust only admits residential students i.e. t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing followed by applicant trust and therefore the application for grant of registration has been denied on an incorrect presumption of facts. The Counsel for the assessee submitted that in respect of identical set of facts the assessee / applicant trust has also been granted provisional registration from A.Y. 2022-23 to 2024-25. The Counsel for the assessee submitted that if given an opportunity, the assessee would be able to fully explain the model of education being followed by the assessee / applicant trust and it is hopeful that the assessee would not be denied registration under Section 12A of the Act. 12. In response, the Ld. D.R. placed reliance on the observations made by the CIT in the order denying grant of registration under Section 12A of the Act. 13. We have heard the rival contention and perused the material on record. 14. On going through the facts of the instant case, considering the model of education, being residential boarding and hostel facility, followed by the assessee / applicant trust, the fact that on identical set of facts the assessee / applicant trust has also been granted provisional registration from A.Y. 2022-23 to A.Y. 2024-25, we are of the cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, the trust vide letter dated 26.03.2013 received in this office on 04.04.2013 has withdrawn its application. In view of the above, the application of the trust is treated as rejected for statistical purposes." 19. Since, in the appeal filed by the assessee against the order passed by CIT denying registration under Section 12A of the Act, we have restored the matter to the file of Ld. CIT for de-novo consideration, accordingly, the present appeal filed by the assessee is also restored to the file of Ld. CIT as well for de-novo consideration. 20. In the result, the appeal of the assessee is allowed for statistical purposes. ITA No. 2349/Ahd/2017 21. The assessee has raised the following grounds of appeal: "1. That on facts, and in law, the learned CIT(A) has grievously erred in not granting sufficient and reasonable opportunity to the appellant and in deciding the appeal ex-parte. 2. That on facts, and in law, the learned CIT(A) has grievously erred in confirming the disallowance of Rs. 33,84,990/- claimed u/s 11 of the Act as application of income of the appellant Trust. 3. That on facts, and in law, the deduction ought to have been allowed as prayed for. 4. The app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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