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TMI Blog2016 (2) TMI 1090X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under section 12AA. Further the inspector deputed to conduct enquiry about the activity being carried out by the assessee society also clearly stated that the activity were in the nature of imparting education. Thus we hold that the assessee society is entitled to Registration u/s 12AA - Decided in favour of assessee. - ITA No.129/Ag/2013 - - - Dated:- 9-2-2016 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER For The Appellant : Sh. Rajender Sharma For The Respondent : Sh. Rajarshi Dwivedy ORDER PER ANNAPURNA MEHROTRA A.M. This appeal has been filed by the assessee against the order of Ld. CIT(A) Gwalior dt. 22/02/2013 refusing grant of Registration under section 12AA. 2. The assessee has taken the following grounds of appeal 1. On the facts in the circumstances of the case, the CIT, Gwalior grossly erred in law on facts in refusing the registration to the appellant society u/s 12AA of the Income Tax Act, 1961. 3. Brief facts relating to the case are that the asseessee society filed an application in Form No. 10A seeking registration under section 12AA of the Act on 09/08/2012. During the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 63. Ld. AR further submitted that copies of donation receipts issued for corpus donation to the donor for the relevant period were enclosed alongwith letter dt. 18/02/2013 addressed to Ld.CIT, Gwalior during the proceeding for grant of registration under section 12AA and placed at Paper Book page No. 64. Ld. AR submitted that having filed all the necessary details and evidences with regard to the corpus donation and no adverse observation regarding the same having been made either by the ACIT or CIT, registration under section 12AA could not have been refused for the reason that genuineness of the corpus donation was not proved by the assessee. Ld. AR further submitted that there was no finding by the Ld. CIT to the effect that the objects of the society were not charitable as defined under Section 2(15) of the Act. 6. Ld. AR stated that infact the assessee society had been established for the purpose of providing education in different fields, by running schools and colleges in different discipline on charitable basis and not for profits and its activities were clearly charitable in nature as per the provisions of section 2(15) of the Act. Ld. AR further submitted that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... genuineness of the donation received were not beyond doubt. 8. We have heard the rival submission and perused the orders of the authorities below as also the documents placed before us. 9. The only issue in the present appeal is the refusal of registration under section 12AA. It is settled law that for the purpose of granting registration. The Commissioner is required to look into the fulfillment of only two conditions: 1. The genuineness of the objects of the trust. 2. The genuineness of the activities of the trust. Based on the above touchstone we find that in the present case the Ld. CIT has refused to grant registration for the reason that the genuineness of the charitable activity of the trust had not been established. One of the reason forwarded by the Ld. CIT for holding so, is that books of account, bills, vouchers and supporting relevant documentary evidence were not filed by the assessee society. On a perusal of the documents filed, we find that books of account were produced twice before the ACIT conducting the enquiry and once before the Ld. CIT. The books of account were first produced before the ACIT on 03/09/2012 and then on 20/12/2012 which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordingly on this ground. In regard to the genuineness of the activities of the trust or the institution, whose objects do not run contrary to public policy and are, in fact, related to charitable purposes, the CIT is again empowered to make enquiries as he thinks fit. In case the activities are not genuine and they are not being carried out in accordance with the objects of the trust/society or the institution, of course, the registration can again be refused. But on mere presumptions and on surmises that income derived by the trust or the institution is being misused or that there is some apprehension that the same would not be used in the proper manner and for the purposes relating to any charitable purpose, rejection cannot be made. Sec. 12AA, which lays down the procedure for registration, does not speak anywhere that the CIT, while considering the application for registration, shall also see that the income derived by the trust or the institution is either not being spent for charitable purpose or such institution is earning profit. The language used in the section only requires that activities of the trust or the institution must be genuine, which accordingly would mean, they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee had submitted complete details of corpus donation received by it and also all the copies of donations received through the donors. Ld. CIT/ACIT we find have not commented on the same nor conducted any further inquiry to establish the genuineness / otherwise of the donations. The assessee we find has discharged his onus of establishing the genuineness of the donation and the Ld. CIT having not acted further upon the evidence placed before it, it has not been therefore conclusively proved that the donations were not genuine, nor could the blame in the present circumstances be placed at the door of the assessee society. 12. Besides we find that Audited Financial Statements of the assessee society for the year ended 31/03/2007, 31/03/2008, 31/03/2009, 31/03/2010 31/03/2011 were also filed before the ACIT/CIT. The details of these financial statements clearly reflected that the assessee society had begun running an educational institution going by the name of Royal College of Education Research Centre in the year ended 31/03/2008. A perusal of the Income Expenditure account of the assessee society for year ended 31.03.2009 reveals that educational activity in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rewith a report on the application for registration u/s 12AA of the Income Tax Act, 1961 filed in form No. 10A on 09/08/2012 by the above named Society in duplicate in prescribed pro-forma. The Society is presently engaged in imparting education at higher level by running course of B.Ed/D.Ed at Royal college of education research Centre located at Sitholi, Dabara Road Gwalior and Primary level Pre-Primary School in named Pearl Velly School located at Geeta Colony, Dal Bazar Gwalior. Objects of the Society also include development of child and women, research in the field of environment, health, sports, welfare of Handicapped, development of villages and work in the field of computer education. In view of the above, it appears that the objects and activities of the Society are charitable in nature and all the conditions have been fulfilled by the Society Registration u/s 12AA may kindly be granted to the Society if deemed fit. The requisite report is submitted for kind perusal and further necessary action please. Yours faithfully Encl: As above Sd/- (S.L. Katara) Asstt. Commissioner of Income Tax Circle-2, Gwalior Further the inspect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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