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TMI Blog2019 (11) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... ue to giving personal guarantee by the trustees for getting secured loan. Similarly, projection of quality of education not clear or method of recruitment of teachers or their qualifications etc not clear, can not be basis for holding the activities as non genuine. Nowhere CIT(E), has brought on record any non-genuine activity carried by the assessee. If any further information was required in the case, he could have carried further enquiries but rejection of registration on presumption is not justified. CIT(E) has not examined the activities of the assessee in the right perspective. As the assessee has filed additional evidence before us including the affiliation granted by the central board of education, we feel it appropriate to set a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Sh. Mahabir Prasad. In the trust deed dated 31/10/2014, the main objective of trust was stated as establishing, open, and run the educational Institute. In furtherance of the main object, the assessee started the process of opening the school under the trade name Mount Litera Zee School which was used under the academic alliance agreement entered between the Zee Litera Ltd (ZLL) and the assessee trust. The assessee purchased land and began constructing the school building. The first academic session was claimed to be started with effect from 01/04/2016, however admissions of the students were started in the month of February 2016. 3. The assessee applied for a grant of registration under section 12AA of the Act and fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid to ZLL as a retainer fee. Copy of bank statement where admission fees and tuition fees would have been credited prior to commencement of the academic session were not provided to the Ld. CIT(E). (v). No confirmation or details of PAN etc. were provided in case of unsecured loan of ₹ 1,54,00,000/-. (vi). The secured loans from M/s Religare Finnest Ltd., M/s ICICI Bank Ltd. and HDFC Ltd. etc taken not by mortgaging property of the trust but personal guarantee of the trustees. (vii). Fee structure of the trust was not clearly mentioned and quality of the education being pursued had not been projected clearly. 4. In view of the above observations, the Ld CIT(E) conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estored back for deciding the issue of registration under section 12AA of the Act and subsequent approval under section 80G of the Act afresh in the light of the additional evidences submitted evidencing the genuineness of the activities of the assessee trust. 6. The LD DR on the other hand relied on the order of the Ld. CIT(E ) and objected for restoring the matter back to him. 7. We have heard rival submission of the parties on the issue in dispute and perused the relevant material on record including the impugned orders and the paperbook filed by the assessee. As far as granting of registration under section 12AA of the Act is concerned, the Ld. CIT(E) is required to grant or reject the registration afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rejection of registration on presumption is not justified. In our opinion, the Ld. CIT(E) has not examined the activities of the assessee in the right perspective. As the assessee has filed additional evidence before us including the affiliation granted by the central board of education, we feel it appropriate to set aside the order of the Ld. CIT(E) and restore the matter back for deciding the application of registration under section 12AA of the Act as well as the application for approval under section 80G of the Act afresh, in accordance with law. The assessee shall be afforded adequate opportunity of being heard. Both appeals of the assessee are accordingly allowed for statistical purposes. 8. In the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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