Income Tax Appellate Tribunal - Delhi
Great Asian Institute Of Management & ... vs Assessee
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: 'C' NEW DELHI
BEFORE SHRI I.C. SUDHIR, JUDICIAL MEMBER AND
SHRI J.S. REDDY, ACCOUNTANT MEMBER
ITA. NO. 5311/Del/2012
Assessment Year: 2011-12
M/s Great Asian Institute of Vs. DCIT (Exemptions),
Management & Technology, New Delhi.
FB-26, Tagore Garden,
New Delhi-110027
PAN: AADCG8471D
(APPELLANT) (RESPONDENT)
Assessee by: Sh.Amit Singhania, CA.
Revenue by: Sh. Satpal Singh, Sr.DR.
Hearing on: 19/12/2012
Order Pronounced on the Date:
ORDER
PER I.C.SUDHIR, JM:
The assessee has questioned order dated 22.8.2012 of ld. DIT passed u/s 12AA (1) (b) read with Section 12A of the Act, on the following grounds:
"1 That on the facts and circumstances of the case and in law, the Learned Director of Income -tax (Exemptions) ("Ld. DIT") has erred in rejecting the application presented by the Appellant under section 12A (1) (aa) of the Act.
1.1 That the Ld. DIT has erred in holding that the Appellant has not yet started its charitable activities.2 ITA No. 5311/Del/2012
1.2 That the Ld. DIT has erred in ignoring the fact that the Appellant has already started its charitable activities by providing scholarships to needy girl students.
1.3 That the Ld. DIT has erred in ignoring the settled position of law that registration under section 12AA of the Act cannot be denied on the ground that Appellant has not started activities under all the objects set out in its Memorandum of Association.
2. That on the facts and circumstances of the case and in law, the Learned Director of Income-tax (Exemptions) ("Ld. DIT"), has erred in rejecting the application presented by the Appellant under section 80G(5) (vi) of the Act.
3. That the order passed by Ld. DIT is bad in law and void ab- initio."
2. In support of the grounds the ld. AR submitted that the appellant had not yet started its charitable activities and without appreciating this material fact, the ld. DIT has rejected the application presented by the appellant u/s 12A (1) (aa) for the registration. The ld. DIT has ignored the settled proposition of law that initial registration u/s 12AA of the Act cannot be denied on the ground that the appellant had not started activities under all the objects set out in its Memorandum of Association. In support the ld. AR placed reliance on the decision of Hon'ble Delhi High Court in the case of DIT Vs. Foundation of Opthalmic & Optometry Research Education Centre, ITA No. 1687/2010, judgment dated 16.8.2012.
3. The ld. DR tried to justify the rejection of the registration sought for. 3 ITA No. 5311/Del/2012
4. Having gone through the cited decision of Hon'ble Jurisdictional High Court of Delhi, we find that the Hon'ble High Court has been pleased to hold in the cited decision that the statute does not prohibit or enjoin the Commissioner from registering trust solely based on its objects, without any activity, in the case of a newly registered trust. It was held that the statute does not prescribe a waiting period, for a trust to qualify itself for registration. We thus respectfully following the ratio laid down in the cited decision of Hon'ble High Court of Delhi in the case of DIT Vs. Foundation of Opthalmic & Optometry Research Education Centre, (Supra) hold that the DIT was not justified in refusing the registration sought by the appellant solely on the basis that the appellant had not taken initial steps towards the establishment of school for providing education as its object.
5. We thus set aside the matter to the file of the ld. DIT with direction to allow the registration sought for in view of the decision of Hon'ble High Court of Delhi in the case of DIT Vs. Foundation of Opthalmic & Optometry Research Education Centre, (Supra). The ground nos. 1, 1.1 to 1.3 are thus allowed.
6. So far as ground no. 2 questioning the order of the ld. DIT in rejecting the application u/s 80G(5) (vi) of the Act is concerned the appellant will have to prefer a separate appeal for the same before the Tribunal, if so 4 ITA No. 5311/Del/2012 advised. The ground no. 2 in the present form thus cannot be entertained in the present appeal.
7. In result appeal on ground nos. 1, 1.1 to 1.3 is allowed.
8. The order is pronounced in the open Court on the day of 21/12/2012.
Sd/- Sd/-
( J. S. REDDY ) (I.C. SUDHIR)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated: 21/12/2012
*AK VERMA*
Copy forwarded to:
1.Appellant
2.Respondent
3.CIT
4.CIT(Appeals)
5.DR: ITAT
ASSISTANT REGISTRAR