Income Tax Appellate Tribunal - Delhi
Ram Kumar Memorial Shiksha Samiti, ... vs Assessee on 1 March, 2016
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IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH 'F', NEW DELHI
BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER
AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER
ITA No. 2484/Del/2015
&
ITA 2485/Del/2015
Ram Kumar Memorial Shiksha Samiti vs. CIT(Exemptions)
M.S. High School C.R.bldg.
Johri Nagar, Line Par 4th floor, Sector 17E
Bahadurgarh, Dt.Jhajjar Chandigarh
Haryana
PAN: AAAAR 1931 Q
(Appellant) (Respondent)
Appellant by : Sh. Navin Gupta, Adv.
Respondent by : Sh. R.B.Meena, CIT, D.R.
ORDER
PER J. SUDHAKAR REDDY, ACCOUNTANT MEMBER
These are appeals filed by the Assessee. ITA 2484/Del/15 is directed against the order of the Ld.Commissioner of Income Tax (Exemptions), Chandigarh passed u/s 12AA of the Act on 30.3.2015. The Ld.CIT rejected the application for registration filed by the assessee u/s 12AA of the Act on the following grounds.
"It has been stated by the A.O. in his report dt. 26.3.2014 sent through JCIT(E), Range 2, Chandigarh vide letter no. JCIT(E)/Chd/2014-15 dt. 27.3.2015 that as per sub clause no.4, powers, functions and duties of the Governing Body of the Society, it is mentioned that the governing body shall be competent to invest the funds in the manner it considers appropriate in the best interest of the society. As per provisions of s.11(5) of the Act, the funds should be invested in the specified modes only. The applicant society has not ~2~ furnished any evidence of investing the funds as required under the provisions of s.11(5) of the Income Tax Act 1961."
2. We have heard Shri Navin Gupta, the Ld.Counsel for the assessee and Shri RB Meena, Ld.CIT, D.R. on behalf of the Revenue.
3. The Ld.Counsel for the assessee has rightly pointed out that the Ld.CIT(E) has not given any finding that the objects of the assessee are not charitable in nature or that the activities of the assessee are not genuine. He submitted that the books of accounts for three years were produced before the Ld.CIT(A) and nothing adverse was found.
4. Ld.CIT, D.R. submitted that the required evidence was not filed before the Ld.CIT and hence the matter may be remitted back to the file of the Ld.CIT(E) for fresh consideration.
5. After hearing rival submissions, we are of the considered view that the objections raised by the Ld.CIT(E) are not tenable. It is well settled that for grant of registration u/s 12AA, the Ld.CIT(E) has to make enquiry as to whether the objects of the society are charitable in nature and whether the activities of the Society are genuine in nature. If the Society does not invest in the mode specified u/s 11(5) of the Act, it is open for the AO to deny exemption u/s 11 of the Act. It is not for the Ld.CIT(E) to reject registration u/s 12AA of the Act on a presumption that the assessee may violate Sec.11(5) of the Act.
5.1. The Ld.Counsel for the assessee rightly relied on the following case laws.
* Surya Educational and Charitable Trust, 355 ITR 280 (P&H) * Fifth Generation Education Society vs. CIT 185 ITR 634 (All.) 5.2. In view of the above discussion we direct the Ld.CIT(E) Chandigarh to grant the registration to the appellant Society u/s 12AA of the Act.
6. In the result ITA 2484/Del/2015 is allowed.
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7. ITA 2485/Del/15 is against the order rejecting the assessee's application in form 10G of the Act. In view of our order in ITA 2484/Del/15, the Ld.CIT(E) is directed to consider this application de novo in accordance with law.
8. In the result ITA 2485/Del/15 is allowed for statistical purposes.
9. In the result ITA 2484/Del/15 is allowed and ITA 2485/Del/15 is allowed for statistical purposes.
Order pronounced in the Open Court on 01st March, 2016.
Sd/-
Sd/-
(SUDHANSHU SRIVASTAVA) (J. SUDHAKAR REDDY)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated: the 01st March, 2016
· Manga
Copy forwarded to: -
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR, ITAT
- TRUE COPY -
By Order,
ASSISTANT REGISTRAR