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TMI Blog2021 (11) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... and clarification on the objects benefiting particular community or class in terms of ICG-IISU Alumnae Association and not for general public utility, ownership proof of the assessee premises. Pr. CIT therefore stated that the assessee company has failed to furnish valid explanation inspite of giving sufficient opportunity and being a limitation matter, he decided basis material available on record and application seeking registration u/s. 12AA was rejected. AR submitted that in response to the show cause dated 11.03.2021, the assessee company did submit its response vide letter dated 19th of March, 2021 and it is therefore, factually not correct that the assessee company has not submitted the requisite information and explanation as sought by the ld. Pr. CIT rather he has failed to correct appreciate the submissions so filed by the assessee company. While examining the assessee's application seeking registration u/s. 12AA, the ld. Pr. CIT has raised broadly two issues which require deeper examination. Firstly, certain objects of the assessee company have been stated to be having elements of commercial/business nature and secondly, whether the objects sought to be achiev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of COVID-19 pandemic may be considered by the Bench as it deems fit and appropriate. 4. After hearing both the parties and considering the material on record, we find that there was a reasonable cause for delay in filing the present appeal due to COVID-19 pandemic and lockdown imposed in the state of Rajasthan which was beyond the control of the assessee. Therefore, the delay so happened is hereby condoned and the appeal so filed by the assessee is hereby admitted for adjudication on merits. 5. On merits, the ld. AR submitted that the appellant is a company incorporated under the provisions of Section 8 of the Companies Act, 2013 and promoted by IIS (Deemed to be University) Trust which is also solely engaged in imparting education having necessary approvals u/s. 12AA of the Act. It was submitted that the main object of the appellant company is to foster the spirit of comradeship and to promote co-operation and mutual help amongst the students passing out from the International College for Girls (ICG) as well as from the IIS (Deemed to be University) (IISU), Jaipur. The Memorandum of Association and Articles of Association are placed at APB 18-43. 6. It was submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alteration has been previously submitted to and approved by the Registrar. 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 registered under this section and having similar objects, 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 224 of the Act. The Company can be amalgamated only with another Company registered under section 8 of the Companies Act, 2013 and having similar object. Dividends and Reserves The Company in general meeting shall not declare any dividend, and shall utilize the profits of the Company only for the promotion of its Objects and thus no portion of the profits, other income or property aforesaid shall be paid or transferred, directly or indirectly, by way of dividend, bonus or otherwise by way of profits, to persons who, at any time are, or have been, members of the company or to any one or more of them or t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n us through the application filed by the appellant company in Form No. 10A wherein the object of the appellant company has been specified as education and advancement of other objects of General Public Utility. It was further submitted that the assessee has also submitted the description of its other objects as promoting co-operation and mutual help among the students. It was submitted that the assessee company is basically incorporated to foster co-operation and mutual help among the students who have passed out from International College Girls as well as from IIS (Deemed to be University), Jaipur. It was submitted that the assessee company is therefore for the benefit of ex-students who have passed out from these educational institutions and therefore, the benefit of the activities of the assessee company are restricted to the ex-students only and cannot be held as benefiting the public at large. Therefore, the objects of the assessee company cannot be held as objects advancing General Public Utility. It was further submitted that given the objects of the assessee company, it is no where comprehended that assessee company is involved in any activity of formal education rather it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -Tribunal) 11. We have heard the rival contentions and perused the material available on record. It is noted that the assessee company had filed an application on 16.10.2020 seeking registration u/s. 12AA of the Act. Thereafter, the assessee company was issued a letter dated 30.12.2020 asking them to submit certain documents/explanation and to submit original registration certificate and Memorandum of Association for verification. However, only part information/documentation was submitted by the assessee company. Thereafter, a show cause notice dated 11.03.2021 was issued asking for certain specific details/information and matter was fixed for hearing on 15.03.2021. In response to the show cause, the ld PCIT stated that the assessee company furnished part details and failed to furnish clarification regarding certain objects having elements of commercial/business nature and clarification on the objects benefiting particular community or class in terms of ICG-IISU Alumnae Association and not for general public utility, ownership proof of the assessee premises. The ld. Pr. CIT therefore stated that the assessee company has failed to furnish valid explanation inspite of giving suff ..... X X X X Extracts X X X X X X X X Extracts X X X X
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