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TMI Blog2020 (4) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... which resulted into non-corroboration of genuineness of the activities - HELD THAT:- Objects of the society - As per amendment in section 2(15) of the Act, Yoga has also been included as a part of education which is also one of the object of the assessee in the instant case. If we see minutely the aims and objects of the assessee-company, then it can be inferred that the basic aims and objects of the assessee company are to provide educational, intellectual, physical and spiritual development of an individual, family, community and the nation by initiating, undertaking and supporting various projects and programs, which in our considered view, falls within the definition of education as prescribed u/s 2(15) of the Act, hence this ground of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber And Dr. A.L. Saini, Accountant Member For the Appellant : Sh. Parikshit Aggarwal (Ld. C.A.) For the Respondent : Smt. Prabhjot Kaur (Ld. CIT-D.R.) ORDER PER N. K. CHOUDHRY, JM: This appeal has been preferred by the Assessee against the impugned order dated 26.04.2019 passed by the Ld. CIT(E) Chandigarh u/s 12AA(1)(b)(ii) of the Income Tax Act, 1961 (hereinafter called as the Act ) whereby the Ld. CIT(E) rejected the application of the assessee by holding as under: 7. In response to the queries raised the counsel of the applicant company submitted the reply stating that Sanjhi Sikhiya Foundation is a charitable educational Entity working towards improvement of the educational paraphernalia of the Governmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d aims and objects. 9. In view of all the above, it is safe to conclude that the objects of the society do not fail under the term Education as envisaged under the limbs of section 2(15) of the Income Tax Act, 1961 and in the absence of financial accounts and bank statement there is no way the genuineness of activities of the society can be corroborated with the stated aims and objects. Accordingly the present application for grant of registration u/s 12AA is hereby rejected. 2. On being aggrieved, the assessee is in appeal before us. 3. The Ld. AR argued in support of its case and submitted that order under challenge in unsustainable because the same is based on conjectures and surmises. 4. On the other hand, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e instant case, the Ld. CIT(E) rejected the applicant's application mainly on two grounds, first relates to the objects of the society and second relates to the non-filing of financial account and bank statement which resulted into non-corroboration of genuineness of the activities of the society with the stated aims and objects. 5.2 Coming to the first ground of rejection, which relates to the objects of the society, the Ld. CIT(E) has raised the issue that the activities of the assessee are not covered u/s 2(15) of the Income Tax Act. The stated aims and objects of the company (assessee) are as under: To provide professional development of young people to enable them to lead change initiatives and solve local problems in all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e at high pedestal at the initial stage. 5.4 The jurisdictional bench in the case of Care Share Welfare Society Vs CIT(Exemptions), ITA No.404(Asr)/2019 decided on 03- 09-2019, has held that where the assessee is at initial stage, then the question of genuineness did not arise. Relevant part of the order is reproduced herein below: Although, in the open Court we had shown our inclination to remand the case with direction to the assessee to approach the Ld. CIT(E) with the documents as submitted before this forum because the documents were not available before the CIT(E), however, considering the principles laid down by the various Courts as it is not in controversy that till the adjudication of application u/s 12AA of the Act, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Association of the assessee company, we realize that in clause no. 10 and 11, the following parameters have been prescribed, in case of winding up or dissolution of the company. 10. If upon a winding up or dissolution of the company, there remains, after the satisfaction of all the debts and liabilities, any property whatsoever, the same shall not be distributed amongst the members of the company but shall be given or transferred to such other company having objects similar to the objects of this company, subject to such conditions as the Tribunal may impose, or may be sold and proceeds thereof credited to the Rehabilitation and Insolvency Fund formed under section 269 of the Act. 11. The Company can be amalgamated only with ano ..... X X X X Extracts X X X X X X X X Extracts X X X X
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