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TMI Blog2019 (6) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... y for propagation of education, to establish and run education institutions for promotion of modern education in Haryana, to prepare buildings, hostels, sports ground and library for institutes of society. The Commissioner of Income Tax, at no point of time has pointed out that the applicant society is not doing these activities. The case laws referred by the Ld. AR are apt in the present case. Thus, CIT has not followed the proper guidelines given by Section 12AA when should be applied. Therefore, we are of the opinion that registration should have been granted u/s 12AA to the Applicant Society as the objects are charitable in nature and as there are no violations of either sec. 11(5) or Sec. 13 during this year or in the next year and pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -utilized the provisions of the Act that accord something akin to automatic approval to entities professing to exist solely for education and not for profits and have in the barraging accorded benefits to its members in the shape of luxury items" is not based on correct appreciation of facts, provisions of law and hence untenable. 5. That mere holding of cars by charitable trust cannot be a ground to deny a registration u/s 12AA of the Act. 6. That the learned Commissioner of Income Tax (Exemptions) has erred both in law and on facts in sustaining the denial of exemption u/s 11 and 12 of the Act. 6.1That the learned Commissioner of Income Tax (Exemptions) has failed to appreciate that section 13(l)(d) of the Act has no application to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of personal use that in no manner can qualify for the benefit of general public. 4. Being aggrieved by the order dated 31/08/2017, the assessee filed appeal before us. 5. The Ld. AR submitted that the assessee society was constituted under a Society Registration Act, 1860 on 26/03/1989. Revised certificate of Registration u/s 9(4) of the Haryana Registration and Regulation of Societies Act, 2012 was issued on 30/08/2013. On 23/02/2017 application for registration of charitable or religious trust u/s 12A (a) of the Act in Form No. 10A (1) was filed. On 18/07/2017, questionnaire was issued by Commissioner of Income Tax Act (Exemptions) Chandigarh to the applicant society. The applicant society filed reply on 3/8/2017 as well as on 11/8/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DIT v. Garden City Educational Trust * 340 ITR 322 (Del) DDDIT v. Shanti Devi Progressive Education Society * 127 ITD 164 (Del) O.P. Jindal Global University v. CIT * 68 SOT 433 (Delhi) Meritta Welfare Trust v. CIT * 212 CTR 394 (All) CIT vs. Red Rose School * 9 SOT 636 (Bom) St. George Educational Trust vs. DIT[E] * 13 SOT 54 (Del) (URO) Acharya Sewa Niyas Uttaranchal vs. CIT * ITA No. 1089/09 in the case of Shri Krishna Education and Welfare Trust vs. CIT * 118 TTJ 823 (Del) Dharma Sansthapak Singh (Niyas) vs. CIT * Order of Hon'ble ITAT in the case of M/s Aggarwal Sabha Meham vs. CIT in ITA No. 5009/D/2007 dated 29.05.2009 approved by Hon'ble High Court of Punjab & Haryana dated 27.08.2010 * 117 ITR 284 (AP) Governin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that the order of the Commissioner of Income Tax (Exemptions) be quashed and direct the Commissioenr to grant registration to the applicant society u/s 12AA of the Act. 7. The Ld. DR submitted that despite giving adequate opportunity, the applicant did not furnish details called for by the CIT (E). No details were filed regarding computation of income to verify eligibility of assessee u/s 10(23C)(vi) of the Act. In past three years, despite turnover being more than ₹ 1 crore, the applicant claimed deduction u/s 10(23C) (vi) of the Act. The society has shown cars like BMW & Endeavour in its financial statements but the cars were found to be registered in the name of Shri K. S. Saini, Director and Sh. Ujjal Singh. Thus, it is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies also have to look into the said activities whether the same are carried out in accordance with law or not. In the present case, the applicant society is not deviating from its main object to utilize the resources of society for propagation of education, to establish and run education institutions for promotion of modern education in Haryana, to prepare buildings, hostels, sports ground and library for institutes of society. The Commissioner of Income Tax, at no point of time has pointed out that the applicant society is not doing these activities. The case laws referred by the Ld. AR are apt in the present case. Thus, Commissioner of Income Tax has not followed the proper guidelines given by Section 12AA when should be applied. Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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