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TMI Blog2016 (2) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... come-Tax, Rajahmundry. 3. The Ld. Commissioner after receiving the application from the assessee, has issued a show cause notice to appear before him on 29.5.2012 and accordingly the assessee's representative appeared and filed a detailed note on transactions with HUF, produced books of accounts for the financial year 2010-11 and detailed submissions made in respect of utilization of the funds. 4. The Ld. Commissioner after considering the detailed submissions made by the assessee, he has observed that the Chief Commissioner of Income Tax, Visakhapatnam vide order in F.No.CC/VSP/Tech/10(23C)/ 1/11-12 dated 29.2.2012 rejected the assessee's application dated 20.5.2011 for approval u/s 10(23C)(vi) of the I.T. Act, for the reason that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 12AA of the Act has to be granted. For that he relied on the decision of Hon'ble Karnataka High Court in the case of Sanjeevamma Hanumanthe Gowda Charitable Trust Vs. DIT 285 ITR 327 and submitted that the assessee trust existed only for charitable purpose and hence registration u/s 12AA has to be granted. 7. On the other hand, the Ld. D.R. has strongly supported the order passed by the Commissioner. 8. We have heard both the parties, perused the records and gone through the orders of the authorities below. The assessee is an educational society existed solely for the purpose of imparting education and other social activities. The Ld. Commissioner has accepted that the objects of the society are in charitable nature. Therefore, there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relatives/members of the HUF is concerned, it was clearly explained before the Addl. Commissioner of Income Tax, Kakinada dated 14.6.2010 by stating that Smt. Kamala, Smt. Rajeswari, Smt. Meena Kumari and Smt. Ratnamala are working for the school and therefore the amount of Rs. 6,900/- p.m. is paid as salary. The Ld. Commissioner without considering detailed submissions made by the assessee simply rejected the registration u/s 12AA of the Act. Another objection raised by the Ld. Commissioner is that the assessee society is not registered with the Andhra Pradesh Charitable & Hindu Religious Institutions and Endowments Act, 1987. The Tribunal has already considered this aspect and held that in the case of Sri Saraswati Educational Society, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al institution, which is a charitable one in nature, the income derived from the educational institution utilized only for charitable purpose. The Ld. Commissioner without considering details filed by the assessee and also explanation given by the assessee, rejected the registration u/s 12AA of the Act unreasonably and without there being any basis. At the time of granting registration, the Commissioner has to see that whether the assessee is established for the charitable purpose or not and whether the funds collected are being utilized for that purpose. Once the assessee has satisfied the conditions that it is existed for the purpose of charitable nature and the funds received also are being utilized to achieve the objects of the trust, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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