2015 (5) TMI 1213 - AT - Income Tax

Exemption u/s 11 - registration u/s 12A denied - CIT, while rejecting the registration sought by the assessee by order dated 28.12.2011, has observed that the Carmel Matriculation Higher Secondary School, which is said to be run by M/s. Carmel Education and Charitable Trust, being the applicant, it is already functioning under the trust called Little Flower Education Society - HELD THAT - School of the applicant is already functioning under a trust, which is registered under the provisions of section 12A - The assessee carried the matter in appeal before the Tribunal and the Tribunal has directed the ld. CIT to give an opportunity to the assessee and decide the issue afresh. CIT gave opportunity to the assessee as per the directions of the Tribunal and passed the order dated 21.03.2013. No infirmity in the order passed by the ld. CIT for the reason that as per the directions of the Tribunal, the ld. CIT has given reasonable opportunity and decided the issue in accordance with law. Even before us, assessee has not able to point out any infirmity in the order of the ld. CIT. Appeal filed by the assessee is dismissed.

Summary

Issues:
1. Appeal against the order of the ld. Commissioner of Income Tax - II, Coimbatore, rejecting registration under section 12A of the Income Tax Act.
2. Granting registration under section 12A of the Act retrospectively.
3. Disagreement between the assessee and the ld. DR regarding the registration.

Analysis:
The appeal was filed against the order of the ld. Commissioner of Income Tax - II, Coimbatore, rejecting the registration under section 12A of the Income Tax Act. The assessee, M/s. Carmel Educational and Charitable Trust, initially applied for registration on 25.03.2009, which was recommended by the Assessing Officer and the JCIT. Subsequently, another application was filed on 28.06.2011, which was rejected on 28.12.2011. The Tribunal, in I.T.A. No. 445/Mds/2012, directed the ld. CIT to reconsider the application. The ld. CIT, after providing a reasonable opportunity, rejected the registration on 21.03.2013.

The main contention of the assessee was that registration under section 12A should have been granted from the date of the initial application, i.e., 25.03.2009, and requested retrospective registration. The ld. DR supported the decision of the ld. CIT. The Tribunal observed that the school run by M/s. Carmel Education and Charitable Trust was already functioning under a different registered trust, "Little Flower Education Society," under section 12A of the Income Tax Act. The Tribunal found no fault in the ld. CIT's decision as he had provided a reasonable opportunity and decided the matter in accordance with the law.

Ultimately, the Tribunal dismissed the appeal filed by the assessee, upholding the decision of the ld. CIT to reject the registration application under section 12A of the Income Tax Act. The order was pronounced on 22nd May 2015 in Chennai.