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Punjab-Haryana High Court

Commissioner Of Income Tax - I vs M/S Spring Dale Educational Society ... on 18 October, 2011

Bench: Hemant Gupta, G.S.Sandhawalia

ITA No.166 of 2011                    1


    IN THE HIGH COURT OF PUNJAB AND HARYANA AT
                    CHANDIGARH


                                                    ITA No.166 of 2011
                                           Date of decision :18.10.2011

Commissioner of Income Tax - I, Ludhiana
                                                            ...Appellant

                                  Versus

M/s Spring Dale Educational Society (Regd.) Sherpur Road,
Ludhiana                                         ...Respondent

CORAM: HON'BLE MR. JUSTICE HEMANT GUPTA
       HON'BLE MR. JUSTICE G.S.SANDHAWALIA

Present: Mr.Rajesh Katoch, Advocate,
         for the appellant.

                    *****

HEMANT GUPTA J. (Oral)

The Revenue has raised the following substantial questions of law:

(i)Whether on the facts and in law, the Hon'ble Income Tax Appellate Tribunal was justified in holding that the manner of application of funds of trust do not fall within the purview of the Commissioner of Income Tax while examining application seeking registration u/s 12 AA of the Act, whereas such examination would allow Commissioner to satisfy himself about the genuineness of the aims and objects of the trust/institution and genuineness of its activities as enumerated in sub-clause (b) of Clause (1) of Section 12 AA?
(ii)Whether on the facts and in law, the Hon'ble Income Tax Appellate Tribunal was justified in holding that the activities of the assessee-society were 'charitable' when after examining the facts the Commissioner of Income Tax has concluded that the applicant ITA No.166 of 2011 2 institution had not been applying funds for the purpose of society but for the benefits of the secretary and her relatives who have substantial interest in the society?
(iii)Whether on the facts and in law, the Hon'ble Income Tax Appellate Tribunal was justified in allowing registration u/s 12A to the assessee, when the Applicant Institution was carrying out the activities for the benefits of persons having substantial interest in the garb of 'charitable activity'?

The above-said substantial questions of law were also raised in ITA No.701 of 2010 decided on 05.10.2011 wherein it has been held that while granting registration under Section 12 AA of the Income Tax Act, 1961, the genuineness of the Trust are relating to income and expenses to be examined and questions are required to be examined while filing assessment.

In view of the decision of this Court in ITA No.701 of 2010 decided on 05.10.2011, we do not find that any substantial question of law arises for consideration of this Court.

Dismissed.

(HEMANT GUPTA) JUDGE (G.S.SANDHAWALIA) JUDGE 18.10.2011 sailesh