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2020 (2) TMI 574 - HC - Income TaxExemption u/s 11 - entitlement to registration u/s 12AA - HELD THAT - There was material before the learned Tribunal to hold the entitlement of the assessee to grant of registration under Section 12AA of the Act. There is no dispute that the assessee is registered under the Societies Act and is engaged in imparting education, which is undoubtedly a charitable activity. It is not the case of the appellant that the previous order dated 10.12.2010 of the Assessing Officer whereby on being satisfied with the aims and objects of the assessee the returned income of the assessee was accepted under Section 143(3) was illegal in any manner and therefore, could not have been relied upon. So far as the contention of the learned counsel that instead of directing for grant of registration under Section 12AA of the Act, the matter should have been remanded to the CIT for fresh consideration, is only in the realm of submission. In our considered view, once the assessee was found to be entitled to grant of registration under Section 12AA of the Act, the learned Tribunal has not committed any error in directing the CIT to grant registration. Thus, the order passed by the learned Tribunal is in accordance with law - Decided in favour of the assessee
Issues:
- Appeal filed by Revenue under Section 260A of the Income Tax Act against the order of the Income Tax Appellate Tribunal granting registration under Section 12AA to the assessee. - Substantial question of law: Justification of ITAT's direction to issue a registration certificate under Section 12AA of the Income Tax Act. - Dispute over the genuineness of the activities of the assessee and the satisfaction of the CIT for registration under Section 12AA. - Tribunal's decision to grant registration upheld by the High Court. Analysis: 1. Appeal by Revenue against ITAT Order: The High Court heard the appeal filed by the Revenue under Section 260A of the Income Tax Act challenging the order of the Income Tax Appellate Tribunal (ITAT). The ITAT had allowed the appeal of the respondent-assessee against the order of the Commissioner of Income Tax, granting registration under Section 12AA of the Act. The substantial question of law for determination was whether the ITAT was justified in directing the Commissioner of Income Tax to issue the registration certificate under Section 12AA. 2. Genuineness of Activities and CIT's Satisfaction: The Revenue contended that the ITAT erred in relying on the Assessing Officer's order from a previous assessment year to grant registration to the assessee. The Revenue argued that the CIT's satisfaction and verification of the genuineness of the activities of the institution are essential under Section 12AA. The Revenue further claimed that the ITAT should have remanded the matter to the CIT for reconsideration instead of granting registration directly. 3. Tribunal's Decision and High Court's Analysis: The ITAT found that the assessee, a registered society running an educational institution for charitable purposes, had submitted relevant documents and information to support its activities. The ITAT held that the assessee was entitled to registration under Section 12AA as its objects were charitable and activities genuine. The High Court concurred with the ITAT's findings, emphasizing that the assessee's registration under the Societies Act and its engagement in charitable activities, particularly education, warranted registration under Section 12AA. 4. Conclusion and Dismissal of Appeal: The High Court found no illegality or perversity in the ITAT's decision and upheld the grant of registration to the assessee. The Court dismissed the Revenue's appeal, ruling in favor of the assessee and concluding that the ITAT's direction to grant registration under Section 12AA was lawful and valid. The High Court's decision affirmed the entitlement of the assessee to registration under Section 12AA of the Income Tax Act.
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