9911796707
TMI Blog2012 (8) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... w.e.f. 21.01.2004. The said registration was effective from 21.01.2004. The main activities of the Society is to establish and run colleges in the field of medical, dental, nursing, engineering, computer and information technology and impart education and prepare students for college examination at State and Central level. Following are the educational institutions run by the society: i. Joginpally BR Engineering College ii. Bhaskar Medical College iii. Joginpally BR Pharmacy College iv. MN Rao Women's Engineering College The trustees holding important and decisive position in the society are as under: (i) Sri J. Bhaskar Rao (ii) Smt. J. Vasumathi Devi (iii) Sri J.V. Krishna Rao (iv) Sri J. Vamshidhar Rao Other family members being members of the society are J. Sunitha, D. Deepika, Ch. Krishna Rao and Ch. Vijayalakshmi. 3. It was informed by the Assessing Officer that during the course of search conducted in the case of the above society evidence relating to collection of fees from students over and above the prescribed fees in the form of donation/capitation fees were found. The said excess fees were collected for granting admission under the management quota into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Commission. It was further stated that no funds of the society were utilized for personal benefits of the trustees. The entire funds were channelized for the purpose of imparting education. The A. R. also enclosed a copy of the written submissions, which were filed before the DGIT (Inv.) regarding the application of funds for education purpose with documentary evidence and it was requested that the said may treated as part of submissions to the extent applicable. It was therefore requested that the registration granted earlier under sec. 12AA be continued in the interest of the Education Institution and in the spirit of law. 5. Accordingly, considering the facts of the case, he cancelled the registration given u/s. 12AA of the Act as there is violation of provisions of sections 121 and 13 of the Act. Against this the assessee is in appeal before us. 6. The learned AR submitted that the Commissioner of Income Tax in his Order dated 29.03.2012, cancelled the Registration of the Society u/s 12AA, stating that the society has violated the provision of sections 11 & 13 of Income Tax Act, and has not conducted itself in accordance with the objects of the society. Various issues w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee trust were not genuine or that the assessee society was not doing any activities in line with the objects of the assessee society for which the assessee had been granted the registration under section 12A. A perusal of the provisions of section 12AA(3) of the Income Tax Act, 1961 which give powers to the learned CIT to cancel registration granted under section 12AA shows that there are two conditions under which the registration u/s 12AA can be revoked, the first being that the activities were not genuine and secondly that the activities conducted by the assessee are not in line with the objects of the trust. There is no finding that either of these two conditions has been violated. Further it has been categorically admitted by the learned authorised representative that the assessee society is not doing any activity other than the activity connected with the spreading and propagating of Gandhian and Sarvodaya ideologies, the purpose for which the assessee had been granted registration under section 12A earlier in 1989. In the circumstances, as no specific violation had been pointed out, we are of the view that the assessee is entitled to the continuation of registration und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fee. Further unexplained cash and jewellery were found and seized from the premises of the assessee society as well as from residential premises of some of the members as under: Sl.No. Place where found Description Found (Rs.) Seized (Rs.) 1. Residence of Sri J. Bhaskar Rao Jewellery 66,00,000 66,00,000 (substituted by Pay Order) 2. Residence of Sri J. Bhaskar Rao Cash 5,17,000 5,17,000 12. Further, it is worthwhile to refer to provisions of section 132(4A) of the Income Tax Act, 1961, as per which a presumption can be drawn that the documents found from the premises of the Society are true and it belongs to the society and the society has to explain it and mention as to who has prepared the documents. During the course of search, statement of Sri Ashok Mehta Reddy an employee of the society, was recorded, wherein he stated that the amount received in cash is mentioned on the right hand side, top portion of each of page next to the name' of the student. He further clarified that the amount mentioned therein is in 'Rs. Lakhs', though the same was written in thousands. For example the amount of Rs. 25,000 mentioned against name K. Varuniya in book marked ..... X X X X Extracts X X X X X X X X Extracts X X X X
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