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TMI Blog2017 (1) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances of the case. 3. That the Society had been in existence since 1981 and had been imparting quality education to the General Public at large and the finding of the CIT that it is being run on commercial lines and do not stand to justify the claim for registration u/s 12AA under I.T. Act, is against the facts and circumstances of the case. 4. That the Worthy CIT has failed to appreciate the fact that under similar facts and circumstances, there is binding judgment of the Hon'ble Supreme Court in the case of "Pine Grove Educational Society" and of the "Queen Educational Society", Uttrakh and, wherein on similar issue, the registration u/s 12AA had been granted and, as such, the denial of registration u/s 12AA was not proper. 5. That the Appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed off." 3. Brief facts relating to the case are that the appellant society was registered since 1981 with the stated objects of running of Sant Mohan Singh Khalsa Labana Girls College, Barara and any other education institution with the view of providing all around balanced and wholesome education to the youth. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant stated that for the purpose of grant of registration the Commissioner has only to consider the genuineness of the objects and activities of the trust as per provisions of section 12AA of the Act and the same having not been doubted by the learned Commissioner of Income Tax , the registration had been wrongly denied to the appellant. The Ld. counsel for the appellant also stated that all books of accounts, pertaining to the society, school and college for three financial years i.e. financial years 2012- 13 to 2014-15 had been filed before the learned Commissioner of Income Tax (Exemptions), alongwith copy of registration of the society, the constitution/by- laws, letter of registration and Form No.10A and no defect has been found in the same. The Ld. counsel for the appellant society further stated that the society had been availing exemption under section 10(23C) during past many years and the same had never been questioned in any of the previous years. The Ld. counsel for the appellant stated that defect pointed out by the learned Commissioner of Income Tax, that it should have claimed exemption under section 10(23C)(iiiab) instead of section 10(23C)(iiiad), was not a m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of provisions of sub-cls. (a) and (b) of s. 12AA, it makes clear that the CIT has to satisfy himself about the genuineness of the activities of the trust or institution and also about the objects of the trust or the institution. 18. On being satisfied about the genuineness of the activities of the trust or the institution and also about its objects, the CIT would either grant the certificate or would reject the prayer. In order to satisfy himself about the genuineness of the activities of the trust or the institution, he can call for such documents or information from the trust or the institution, as he thinks necessary and he is also empowered to make such enquiries as he may deem necessary in this behalf. 19. The objects of the trust can be had from the bye-laws or the deed of trust, as the case may be and unless, of course, the objects of the trust apparently make out that they were not in consonance with the public policy or that they were not the objects of any charitable purpose, registration cannot be refused accordingly on this ground. 20. In regard to the genuineness of the activities of the trust or the institution, whose objects do not run contrary to public pol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a school is the object of the society, as given in its bye-laws, it has to be satisfied that the society has established the school, where education is being imparted as per rules and the factum of establishment and running school is a genuine activity. The enquiry regarding genuineness of the activities cannot be stretched beyond this." 7. In this legal backdrop, we find that the facts in the present case demonstrate that nothing adverse has been found by the Commissioner of Income Tax regarding the genuineness of the objects of the applicant society. In fact, the observations of the learned Commissioner of Income Tax in this regard are that the main aim of applicant society is running of Sant Mohan Singh Khalsa Labana Girls College and other objects and any other educational institute with a view to providing all round balanced and wholesome education to the youth so as to make them worthy citizens of this great country. Clearly, the objects of the appellant society relate to imparting education and are charitable as defined under section 2(15) of the Act. Further we find that there is no adverse observation regarding the activities carried on by the appellant society by way of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e activities since it calls into question the claim of exemption under section 10(23C)(iiiad) of the Act, which grants exemption from tax of incomes of institutions existing solely for the purpose of education and whose receipts during a financial year do not exceed a specified limit, on account of the income exceeding a particular limit but does not doubt the genuineness of the activities carried out by the assessee. Further the observation of the Ld.CIT that the institutions of the applicant society are being run on commercial lines ,we find has no basis. Ld.CIT has merely made a general comment on the above lines which is not supported by any facts or figures and hence in our view requires no consideration. 9. In view of the above, it is clear that the learned Commissioner of Income Tax had found nothing adverse relating to the activities of the assessee applicant and, therefore, we have no hesitation in holding that even the activities of the applicant society were genuine. 10. In view of the above, since the genuineness of both the object and activities of the assessee society having not been doubted, we are of the considered opinion that the order of the Ld.CIT cannot be su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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