9911796707
TMI Blog2014 (7) TMI 1304X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner of Income Tax has erred in law as well as on facts in rejecting registration under section 12AA of the Act which is arbitrary & unjustified. 2. That the Ld. Commissioner of Income Tax has erred in observing that the assessee society has not carried out/started any activity which is unfounded, without any basis and as such the order is arbitrary and unjustified. 3. That the registration has been refused only on the basis of suspicion, conjectures and surmises which is not permitted under the Law and as such the order refusing registration is illegal, arbitrary and unjustified." 3. The learned A.R. for the assessee at the outset pointed out that the issue in the present appeal is covered by the order of the Hon'ble Pun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hishu Niketan School Society. The applicant Society has not yet taken over the school on lease meaning thereby that no activities have yet been carried out. When confronted, the counsel of the Society filed another reply on 19.10.2012 stating that the applicant Society is taking evening classes for poor and weak students in the premises of Shishu Niketan School, Mohali. Balance sheet and Income & Expenditure account for the year ending 31.03.2012 have also been filed. Perusal of Balance sheet and Income & Expenditure account shows that corpus fund of Rs. 5000/- has been shown in the balance sheet. No receipts have been shown and an expenditure of Rs. 1520/- has been debited in the Income & Expenditure account. No proof, however, with regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is seen that the Society has been formed but no activity has been started even upto the date of closure of present proceedings. In the absence of any activities, there is no material before the undersigned to verify the genuineness of objects and activities of the Society. In view of the facts discussed above, the applicant Society is not eligible at the stage for grant of registration under section 12AA Act being no activity in the nature of charitable activity having been carried out since its inception. The application of the Society for registration under section 12AA of the Act is, therefore, rejected. The society may however, apply again after carrying out charitable activities to meet out its objectives." 7. We find tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; the orders of the Commissioner of Income Tax and that of the Tribunal in declining the registration to the appellant are not sustainable in law. Consequently, while answering the substantial question of law in favour of the appellant, the present appeal is allowed." 8. The issue arising before us is identical to the issue before the Hon'ble Punjab & Haryana High Court and following the ratio laid down by the Hon'ble High Court we hold that the assessee is entitled to the registration under section 12AA of the Act. The grounds of appeal raised by the assessee are thus allowed. 9. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on this 15th day of July, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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