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TMI Blog2014 (8) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... he order that assessee is covered by the proviso to section 2(15) of the Income Tax Act, 1961. In view of the said finding, the registration u/s 12A may please be granted to assessee." 3. Briefly stated the facts giving rise to these appeals are that the assessee trust filed an application on 10.3.2011 in Form No. 10A for registration u/s 12AA of the Act. After considering replies and submissions of the assessee, the CIT Faridabad rejected the application of the assessee trust for registration u/s 12A of the Act with following observations and conclusion:- "The only evidence to support the claim that main object of the Trust is 'education' is the agreement with Lancaster, within which, as discussed above, the applicant is not providing 'education'. There is no other evidence or indication that the applicant intends to pursue 'education' on its own. Further, in my opinion, the applicant is wrong in claiming that 'there is no bar in the income tax act, whether a institute or college is affiliated with a university established or locally or abroad'. Both arrangements work on different principles. The arrangement between educational institutes, affili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw. The AR also submitted that as per Rule 29 if assessee is prevented by sufficient cause to produce additional evidence before the lower authorities, then the same may be submitted before the Tribunal that may be relevant to any ground of appeal and assessee may be allowed to produce such additional evidence to support his case. The assessee has placed reliance on the decision of Hon'ble Jurisdictional High Court of Delhi in the case of CIT vs Text Hundred India (P) Ltd. (2011) 197 Taxman 128 (Delhi) and submitted that under Rule 29 if it is found just and proper to admit the additional evidence allowing the application of the assessee, then the case may be remitted back to the CIT, Faridabad to decide the issue afresh after considering the said additional evidence so admitted by the Tribunal. 6. Replying to the above, ld. DR submitted that Rule 29 does not provide any right for the assessee to submit additional evidence before the Tribunal during the second appellate proceedings. The DR further contended that however Tribunal is empowered to call for additional evidence if the Tribunal requires any document to be produced or any witness to be examined or any affidavit to be fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DGWI i.e. GD Goenka World Institute, to identify them as student of GD Goenka World Institute and other identity card was Library card of Lancaster University, so as to allow students to use online library of Lancaster. b. Sample Copy Letter of appointment & Terms and Condition of appointments of teachers and administrative staff. (page no. 3 -13 of Annexure B) Observation at Page 3, Para 4, of order passed u/s 12AA(I)(b)(ii) of the Income Tax Act, 1961 dated 08/09/2011 is reproduced as under: "Further, in my view, because of the overwhelming thrust in the agreement on distinct roles for Lancaster and the applicant, some minor responsibilities of academic nature, say 'teaching under graduate ....... (again) supported by academic staff from Lancaster' (Para 5.8), 'recruitment of academic, administrative and support staff (para 5.9) and 'development' (Para 5.10), all exercised under complete control and supervision of Lancaster do not have material impact on role division between the Lancaster and the applicant. " That the LD CIT never confronted the assessee about as if he was keeping any adverse inference about appointment of staff, in this regard it is submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sity will provide student with identity cards which identify them as external student of Lancaster University and entitle them for online services. But the CIT never inquired about the other identity cards which were issued by the GDGWI. Additional evidence placed at page no. 1 & 2 of Annexure B to the application in hand as sample copy of identity cards is relevant on this issue. 10. We further observe that in the impugned order at page 3 para 4, it has been observed that the recruitment of academic, administrative and support staff is exercised under complete control and supervision of Lancaster University and the CIT drew a conclusion that the Lancaster University is in the business of education in India through the assessee trust and the assessee trust is providing services to Lancaster University for a fee. The CIT held that the assessee trust is providing support services for a fee to the Lancaster University in delivery of education and thus, the same is covered by proviso to section 2(15) of the Act which renders the assessee trust ineligible for registration u/s 12A of the Act. 11. In view of above, we observe that the facts which lead to the conclusion of CIT were based ..... X X X X Extracts X X X X X X X X Extracts X X X X
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