2021 (1) TMI 82 - AT - Income Tax

Refusing registration u/s 12AA - assessee was registered under the Bombay Public Trust Act, 1950 on 04-08-1997 - assessee was granted exemption u/s 80G earlier after accepting the documents and details of the trust - CIT(E) for refusing registration was that the assessee did not furnish details of compliance of Right to Education norms - HELD THAT - This point was answered by stating Right to education No admission request has been received under the Right to education norms of state Government till date and hence this is not applicable. Thus, it is discernable that the assessee did respond to the requirement of the ld. CIT(E) about compliance to Right to Education norms. Simply ignoring the same, the ld. CIT(E) refused registration vide his order dated 29-09-2020, which was obviously passed after taking note of the assessee s online submission of reply dated 18-09-2020. Since the sole basis for denial of registration by the ld. CIT(E) is non-existent, in our considered opinion, the assessee is entitled to registration. Overturning the impugned order, we direct the grant of registration u/s 12AA of the Act. - Decided in favour of assessee.

Summary

Issues: Refusal of registration u/s 12AA of the Income-tax Act, 1961 based on non-compliance with Right to Education norms.

Analysis:
1. Background: The appeal was filed against the Commissioner of Income-tax (Exemption), Pune's order denying registration u/s 12AA of the Income-tax Act, 1961.

2. Facts: The assessee, registered under the Bombay Public Trust Act, 1950, applied for registration on 15-01-2020, claiming engagement in educational activities. The Commissioner called for details on admissions to weaker sections and compliance with RTE norms.

3. Legal Provisions: The Commissioner cited section 12AA(1)(a)(ii) of the Act, requiring compliance with other laws in force. Non-compliance with RTE Act was deemed crucial for registration.

4. Assessee's Response: The assessee submitted a reply stating no requests were received under RTE norms, which was considered in the application. The Commissioner's refusal was based solely on this point.

5. Tribunal's Decision: The Tribunal found the assessee had responded to the compliance requirement adequately. The refusal was deemed baseless, as the sole reason for denial was non-existent. Consequently, the Tribunal directed the grant of registration u/s 12AA of the Act.

6. Conclusion: The appeal was allowed, overturning the Commissioner's order, and registration u/s 12AA was granted to the assessee. The decision was pronounced in the Open Court on 11th December 2020.