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TMI Blog2012 (11) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellants by:Sh. P.N. Arora, Adv. Respondent by:Sh. Tarsem Lal, DR ORDER PER BENCH ; These two appeals of different assessees arise from two different orders of Commissioner of Income-tax, Jammu, each dated 16.08.2011 passed under section 12AA(b)(ii) of the Income tax Act, 1961. 2. The issues involved in the present appeals are identical and, therefore, both the appeals are being taken up together for the sake of convenience by this consolidated order. The assessee in the case of D.N. Memorial Trust, Dina Nagar, Udhampur has raised following grounds of appeal: 1. That the order under section 12AA(b)(ii) of the Income-tax Act, 1961, passed by the Ld. CIT, Jammu, thereby refusing to register the Society is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the expenditure is more than the receipt and as such there was no reason to refuse grant of registration to the Trust. In view of these circumstances, the registration as claimed should have been allowed. 6. Any other ground of appeal that may be urged at the time of hearing of the appeal. 3. The assessee in the case of M/s. Prashant Educational Trust, Nagrota, has raised following grounds of appeal: 1. That the order under section 12AA(1)(b)(ii) of the Income-tax Act, 1961, passed by the Ld. CIT, Jammu, thereby refusing to register the Society is illegal, invalid and void ab-inito and the same is liable to be cancelled. 2. That no reasonable opportunity of being heard has been allowed before refusing to register the Society. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld have been allowed. 6. Any other ground of appeal that may be urged at the time of hearing of the appeal. 4. First of all, we take up appeal in the case of M/s. D.N. Memorial Trust, Dina Nagar, Udhampur and our decision hereinbelow shall be applicable on M/s. Prashant Educational Trust, Nagrota, being identical issues as mentioned hereinabove. 5. The brief facts in M/s. D.N. Memorial Trust, are that the assesseetrust is running school under the name and style of Indian Institute of Teachers Training Research. The Ld. CIT, Jammu observed that there is excess of income over expenditure in excess of 15% for the first year ending on 31.03.2011. The assessee-trust was constituted on 28/06/2010 and filed application u/s 12A(a) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a reported in 315 ITR 48 and Hon ble Punjab Haryana High Court in the case of CIT vs. Manav Mangal Society (2010) 328 ITR 421. 7. The Ld. DCIT(DR), Mr. Tarsem Lal, on the other hand, argued that there has to be a rigorous test whether the Trusts are growing in the country for intent and purpose of profit under the garb of charitable institution and there should be a check on the same. The Ld. CIT has to examine the genuineness of its activities. The fees structure is so huge in the present case, then the purpose of education is forfeited in the first year. Therefore, he supported the order of the ld. CIT. Mr. Tarsem Lal, Ld. DCIT(DR)s, further argued with alternative plea that since the order of the ld. CIT is not a speaking order, it s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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