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TMI Blog2014 (3) TMI 769X X X X Extracts X X X X X X X X Extracts X X X X ..... n u/s 11 r.w.s. 12AA as long as the registration granted earlier to the trust u/s 12A is in force - there is no dispute to the fact that the assessee trust is imparting education, and the registration granted earlier u/s12A is continuing, and in force for the assessment year, and the assessee has also been granted exemption u/s.80G – thus, the AO is not justified in rejecting the claim of deduction u/s 11 of the Act – the order of the CIT(A) upheld and there is no reason to interfere in the findings of the CIT(A) – Decided against Revenue. - ITA. No. 962/PN/2012 - - - Dated:- 21-3-2014 - Shri Shailendra Kumar Yadav And Shri R. K. Panda,JJ. For the Petitioner : Shri Nikhil Pathak For the Respondent : Shri P. L. Pathade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the certificate of registration u/s.12AA bearing No. NSK/tech/12A/89-90/4 dated 24-04- 1989. The trust has been granted the certificate of exemption u/s.80G since inception of the trust and the latest certificate of exemption issued by the CIT, Nashik is from 01-04-2009. The trust has been filing returns of income regularly and the object of the trust is to impart education upto 10th Standard by conducting the schools as per the norms laid down by the Government of Maharashtra. It was argued that the assessee society is an educational society with the sole object of imparting education and not for the purpose of profit. It was argued that the trust has been claiming exemption u/s.11 for all the years since A.Y. 1989-90 to 2011- 2012 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was operative during the previous year relevant to this assessment year. A copy thereof has been placed before me and filed. During the course of scrutiny assessment it was noticed that the Chief Commissioner of Income Tax, Nashik rejected the application of the appellant for exemption u/s 10(23C)(iiiad) of the Act as it was noticed by him that the trust which is running schools has received donations from various students, which is in the nature of capitation fees. The AO therefore disallowed the surplus of Rs.57,34,777/- and assessed the total income of the appellant at Rs.57,34,777/-. 5.2.1 The appellant is a trust registered u/s 12AA and got certificate of exemption u/s 80G vide order No.NSK/CIT-I/80G(5) dated 15/06/2010 w.e.f. 01/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive grounds of appeal are, therefore, allowed. 6. In the result, the appeal is allowed . 4.1 Aggrieved with such order of the CIT(A) the Revenue is in appeal before us with the following grounds : 1. In the facts and circumstances of the case and as per law, whether the CIT(A) was justified in deleting the addition of Rs.57,34,777/- on account of surplus taxed as income in the Assessment Year?. 2. In the facts and circumstances of the case and as per law, whether the CIT(A) was justified in holding that the sections 11, section 12AA section 10(23C) are independent the assessee is entitled for the deduction u/s.11, inspite of the fact that it is established in the assessment proceedings that the assessee Trust by accepting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s.12A is in force. Since in the instant case there is no dispute to the fact that the assessee trust is imparting education, and the registration granted earlier u/s.12A is continuing, and in force for the impugned assessment year, and the assessee has also been granted exemption u/s.80G, therefore, the Assessing Officer in our opinion in the instant case is not justified in rejecting the claim of deduction u/s.11. In this view of the matter and in view of the detailed reasoning given by the Ld.CIT(A) we find no infirmity in his order. Accordingly, the same is upheld and the grounds raised by the Revenue are dismissed. 6. In the result, the appeal filed by the Revenue is dismissed. Pronounced in the Open Court on 21-03-2014. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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