9911796707
TMI Blog2023 (9) TMI 1019X X X X Extracts X X X X X X X X Extracts X X X X ..... he Appellant : Shri Ravi Pratap Mall, Adv. For the Respondent : Ms. Sapna Bhatia, CIT DR Shri B.S. Anand, Sr. DR ORDER PER C.N. PRASAD, J.M. All these appeals are filed by the assessee against different orders of the Ld. Commissioner of Income Tax (Appeals)-26, New Delhi for the assessment years 2009-10 to 2013-14 in sustaining the action of the Assessing Officer in denying the exemption claimed by the assessee u/s 11/12 of the Act. 2. The Ld. Counsel for the assessee, at the outset, submits that section 11/12 was denied to the assessee on the ground that the Pr.CIT (Central)-3, New Delhi by order dated 01/03/2016 has cancelled the registration granted u/s 12AA of the Act. The Ld. Counsel submits that the Tribunal in ITA No. 6054/Del/2018 dated 03/09/2020 held that the order of the PCIT cancelling the registration since inception u/s 12AA(3) of the Act is illegal and not valid. Therefore, the Ld. Counsel submits that as the order passed by the PCIT cancelling the registration was held to be illegal and not valid, the order granting registration u/s 12AA to the assessee got restored and, therefore, the reassessments made by the Assessing Officer u/s 143 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dical College Hospital while on his official duty on 22.04.2010 on the allegations that he has delivered an amount of Rs. 2 crore to Sh. Ketan Desai, President of Executive Committee of MCI through a middleman Mr. J.P. Singh. And also on the same date, Dr. Sukhwinder Singh, Vice Chairman of M/s Gian Sagar Medical College Hospital was charge sheeted and arrested by CBI team. The assessee trust was engaged in the nefarious activities for inducting of fresh batch of students for academic session without the requisite infrastructure. It is clearly violation of (ii) of para 4 of trust deed, simultaneously/ violating the provision of Section 2(15) of the I.T. Act while earring out of its activity. The society was established with the sole intention of helping charitable and philanthropic venture of running of medical college and thereby seeking to claim exemption on the income so generated under section 11 and 12 of the I.T. Act. It is further noted that due to nexus of corruption by way of bribe and criminal misconduct by the assessee trust, registration of the trust was can ceiled since inception u/s 12AA(3) of the Income Tax Act; 1961. A Charitable trust conduct must be at p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rships in any field of education that they deem fit in any part of India. viii) To provide relief to poor students and poor patients free of cost or at minimum possible charges to others, without any profit motive whatsoever. ix) To provide nutrition and education, specially, in cases like- a) Anemia in girl child and b) during pregnancy of women. x) To promote small family norms through: a) Population education b) MCH (Maternal and Child Health) including immunization, safe delivery, identification of high risk pregnancies. xi) To organize and promote literacy programmes particularly in Urban, slums and backward rural areas. xii) To set up Counseling Centres for providing counseling and guidance to the educated youth for career and job opportunities and seek coordination and cooperation of educational institutions for the purpose. xiii) To set up and run or assist the setting up and running of Adult education centres and coaching centers for moral upliftment, educational skills towards self reliance. xiv) To grant stipend, scholarships or any other assistance or otherwise to deserving students or scholars in the fie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or institution and the genuineness of its activities, he (i) shall pass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant: Provided that no order 'under sub-clause (ii) shall be passed unless the applicant has been given a reasonable opportunity of being heard. [(1A) Ail applications, pending before the [Principal Chief Commissioner or] Chief Commissioner on which no order has been passed under clause (b) of sub-section (1) before the 1 st day of June, 1999, shall stand transferred on that day to the [Principal Commissioner or] Commissioner and the [Principal Commissioner or] Commissioner may proceed with such applications under that sub-section from the stage at which they were on that day.] (2) Every order granting or refusing registration under clause (b) of sub-section (1) shad be passed before the expiry of six months from the end of the month in which the application was received under clause (a) [or clause (aa) of sub-section (1)] of section 12A.1 [(3) Where a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh the record before us, it cannot be said that the trust has involved in any activity which promoted violence, terrorism, fanaticism or political favouritism. Hence, the observation of the Id. PCIT can be said to be based on wrong facts. 43. Regarding the applicability of provisions of Section 2(15) as per the provisions charitable purpose includes education and since the assessee is in the activity of imparting education, the observation of the Id. PCIT is also cannot be held to be valid based on the provisions of the Act. For the sake of brevity and ready reference, the provisions of Section 2(15) of the Act are reproduced as under: Section 2... (15) charitable purpose includes relief of the poor, education, [yoga,] medical relief, [preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest,] and the advancement of any other 69 object of general public utility; [Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e hereby hold that the order of the Id. PCIT dated 27.10.2017 cancelling the registration since inception, u/s 12AA(3) of the Act is legally not valid. Before departing, we hereby clarify that, 1) The order of the id. PCIT cancelling the registration since inception is hereby revoked. 2) The order has been passed in accordance with the provisions of the Income Tax Act, 1961 and shall not impact the outcome of any proceeding under any other Acts promulgated under Constitution of India. 3) The revenue shall be at liberty to approach the Tribunal for re-institution of the appeal on re- commencement of trial against Sh. Ketan Desai which has been since dropped. 5. On perusal of the reassessment order and the appellate order, we observe that the lower authorities have denied claim for exemption u/s 11/12 of the Act to the assessee for the reason that the Ld. PCIT (Central)-3, New Delhi cancelled the registration granted u/s 12AA of the Act by order dated 01/03/2016. However, since the Tribunal by order dated 03/09/2020 cancelled the order of the Ld. PCIT passed on 01/03/2016 and 27/10/2017 withdrawing the registration u/s 12AA of the Act, the reassessments made by ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
