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TMI Blog2012 (8) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... 2A and 12AA are material and relevant, for the purpose of granting registration u/s 12AA - order of CIT is set aside and he is directed to grant registration to the assessee society - in favour of assessee. - IT APPEAL NO. 735 (LKW.) OF 2011 - - - Dated:- 3-7-2012 - S.K. YADAV, AND MEHAR SINGH, JJ. H. Rahman for the Appellant. R.K. Ram for the Respondent. ORDER Mehar Singh, Accountant Member - This is an appeal filed by the assessee society against the order of CIT, dated 24/11/2011, passed u/s 12AA of the Act (in short referred to as "the Act". The learned 'A.R.' contended before the Bench that the impugned order, passed by learned CIT, is contrary to the provisions of section 12A read with section 12AA of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been refused, by invoking provisions of section 11 to 13 of the Act. Similarly, the learned CIT, referred to Article 29 and 30 of Constitution of India, with a view to demonstrate that the credentials of the society are not secular in nature. The learned CIT observed that principal objects of the assessee society are to establish schools for Muslim boys and girls, to teach Urdu, Arabic and Persian, providing Islamic education and holding Islamic seminars, establishing educational institutions under Articles 29 30 of the Constitution of India. It was, further, observed by the learned CIT that section 11 to 13 comprise a code distinct, from other provisions of the Act. An institution to which these sections apply is entitled for its inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant, its principal objects, inter alia, are to establish schools for Muslim boys and girls to teach Urdu, Arabic and Persian, providing Islamic education and holding Islamic seminars, establishing educational institutions under Articles 29 and 30 of the Constitution of India as minority institutions etc. 4.1 Ss. 11 to 13 comprise a coda distinct from other provisions of the Act. An institution to which these sections apply is entitled for its income to be treated in a manner different from the income of other persons. Ss. 12A and 12AA lay down the conditions required for applicability of Ss 11 and 12 and S. 13 provides for certain exclusions. S. 12A and 12AA provide for registration of an institution. It is only after such registra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment helps the assessee. The scope of the present proceedings is not the establishment of any institution. These proceedings u/s 12A r/w S. 12AA are extremely limited in scope. Registration merely entitles, an applicant to have its income dealt with as per provisions of Ss. 11 to 13 of the Act. Denial of registration does not in any manner prejudice the fundamental right to establish institutions in accordance with Art 29 and 30. This argument is misconceived and irrelevant and accordingly rejected. 6. By way of its activities a photocopy of an irregularly numbered document listing names and amounts, purportedly donations, has been placed on record. Apart from this document the only other material available with the applicant is a plethor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded that no order under sub-clause (ii) shall be passed unless the applicant has been given a reasonable opportunity of being heard." 6. The above findings of the CIT are required to be tested in the light of the provisions of section 12AA of the Act. A bare perusal of the provisions of section 12AA of the Act clearly reveals that the CIT is required to satisfy himself about the genuineness of the activities of the trust or institution and may also make such enquiry as deemed fit in this behalf. Further, after satisfying himself about the objects of the trust or institution and the genuineness of its activities, the case of the assessee, for registration u/s 12AA of the Act is to be considered accordingly. In the present case, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een demonstrated by the learned CIT that the activities of the appellant society are non-genuine. Similarly, it has not been shown by the CIT that the objects of the assessee are not charitable, within the meaning of section 2(15) of the Act. 8. In view of the above legal and factual discussions, we are of the considered opinion that denial of registration to the appellant society u/s 12AA of the Act is contrary to the provisions of section 12AA read with section 12A of the Act. The denial of grant of registration is founded on invocation of provisions of section 11, 12 and 13 by the CIT. In view of this, the action of CIT is contrary to the Legislative intention contained u/s 12A read with section 12AA of the Act. Therefore, order of CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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