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TMI Blog2015 (3) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... ich are used as singular noun rather than to bring more than one entity. Since the assessee has complied with all the conditions which are necessary for grant of registration u/s. 12AA and we are of the opinion that 'institutions' is used as singular Noun rather than to bring more than one entity and also that Mahindra Educational Institutions is only a single entity but consists of different colleges/institutions operating under such single entity, we direct the DIT(E) to grant registration to the assesseecompany u/s. 12AA of the Income-tax Act, 1961. - Decided in favour of assessee. - ITA No. 1338/Hyd/2014 - - - Dated:- 28-11-2014 - SHRI P.M. JAGTAP AND SMT. ASHA VIJAYARAGHAVAN, JJ. For The Appellant : Sri T.S. Ajai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Mrs. Madhu Sarma, Registrar of the Institution appeared on 23.04.2014 and clarified that the Company has been incorporated with the sole charitable objective of promoting quality of primary and higher education in India. 3. However, the DIT(E) vide letter dt. 15.05.2014 referred to the name of the assessee-company i.e. Mahindra Educational Institutions and having regard to such name asked the assessee to clarify as to why it should not be construed as several institutions/entities and how the same can be granted registration u/s 12AA of the Income-tax Act, 1961. The operating portion of the letter dt. 15.05.2014 of the DIT(E) is reproduced below for reference: After considering the submissions made during the proceedings and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stered with one corporate number and one single permanent account number. The assessee also clarified that the word institutions was placed in the name only to identify different colleges operating in different locations forming part of one entity. The assessee therefore submitted that the registration u/s 12AA may be granted to it. The gist of the replies furnished by the assessee is as below: 1) The company was incorporated with the object of setting up and operating many colleges in different faculties viz., engineering, commerce, civil, computers, etc. Further, those colleges are to be set up across India at different locations. All these colleges are 'institutions' forming part of ONE entity. The public should be able to i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, incorporating words enterprises, industries, mills, etc., are concerned, it may be stated that such names are ending with the word 'Limited', thereby, signifying only one company. However, in the instant case, the name itself which ends with the word 'institutions', signifies existence of multiple institutions i.e. multiple entities. c) It is stated by the applicant that, it has been registered with that name under the Companies Act, 1956. However, such name which clearly indicates cluster of institutions has to be kept in view, having regard to the provisions contained in section 11, 12A 12AA of the Act, where there is reference to the word 'institution' i.e used as singular term. d) Thus, as may be noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Aggrieved, the assessee is in appeal before us. 7. The learned counsel Sri Ajay reiterated the arguments put forth before the DIT(E) before us. 8. Heard both parties. We are of the opinion that the word institutions was placed in the name only to identify different colleges in different locations as forming part of one entity. The name is indicative to the public that there was only single entity but it consists of different colleges/institutions forming part and operating under such single entity. Further, plurality is common Indian practice in names such as 'enterprises', 'industries', 'firms', 'projects', etc., which are used as singular noun rather than to bring more than one entity. The compan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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