Swargiya Jagannath Jattewar Shikshan Sanstha v. CIT

SUBSCRIBE FOR FULL CONTENT


The Tax PublishersITA No. 128 (Nag) of 2011 2013 TaxPub(DT) 0985 (Nag-Trib) : (2013) 051 (II) ITCL 0319 : (2013) 141 ITD 0543 : (2013) 155 TTJ 0104 : (2013) 089 DTR 0051 Income Tax Act, 1961 --Charitable trust--Registration under section 12AA Rejection of application--Assessee-trust had started a bachelor degree course in the field of architecture and the college was affiliated to University of Nagpur whose fee structure was decided and monitored by a Central Government Department. It made an application for registration under section 12A. Commissioner rejected the application for registration as there was some accounting irregularities and institution was not being operated wholly for educational purpose but for commercial purpose. *Held :* Was not justified, as for the registration of the institution, the Commissioner has to satisfy himself about the object of the institution and genuineness of the activities of the institution and not about the nature of the income. If the object of the institution falls within the definition of charitable purposes under section 2(15) and the institution is genuinely carrying out such object, the Commissioner must grant registration to the institution. It was rightly emphasised that none of the objects was against public policy and the main activity of the trust was to provide education to students of architecture as per the course approved by the appropriate authorities and the admission policy, and the fee structure endorsed by the Government of India. The objects, therefore, could not be said to be the objects, which run against public policy or did not fall within the category of activities, which were for charitable purposes. Income Tax Act, 1961 Section 12AA Income Tax Act, 1961 Sections 12A and 2(15) In The ITAT, Nagpur E Bench R.K. Gupta, J.M & Rajendra, A.M. Swargiya Jagannath Jattewar Shikshan Sanstha v. CIT ITA No. 128 (Nag) of 2011 31 December, 2012 Appellant by : Alok Arun Kumar Bhagat Respondent by : M. Bhusari ORDER *Rajendra, A.M.* Present appeal has been filed by the Assessee-Trust challenging the order of the Commissioner -III, Nagpur dt. 24-06-2011. Following Grounds of Appeal have been raised by the assessee : '(1) Having regard to the facts and circumstances of the case, learned Commissioner has erred in law and on facts in rejecting the application for registration under section 12A of the Income Tax Act, 1961 filed by the Appellant which is an Educational Trust and that too without giving adequate opportunity of being heard and on the basis of such considerations which are not germane to the issue before him. (2) In any view of the matter and in any case, action of the learned Commissioner in refusing the registration under section 12A is bad in law and against the facts and circumstances of the case and is contrary to the principles of natural justice, and the Appellant ought to have granted registration under that section. (3) The appellant carves leave to amend, alter or delete any of the above grounds of appeal.' 2. Assessee-Trust made an application for registration under section 12A of the Income Tax Act, 1961 (Act) in form No.10A on 2-12-2010. On 9-6-2011, a notice for hearing for verification of documents was issued to the assessee from the office of Commissioner of Income Tax-III, Nagpur. On 24-6-2011, an order under section 12AA of the Act was passed by the Commissioner rejecting the registration of application of the assessee. SUBSCRIBE FOR FULL CONTENT

The Tax PublishersITA No. 128 (Nag) of 2011
2013 TaxPub(DT) 0985 (Nag-Trib) : (2013) 051 (II) ITCL 0319 : (2013) 141 ITD 0543 : (2013) 155 TTJ 0104 : (2013) 089 DTR 0051

Income Tax Act, 1961

--Charitable trust--Registration under section 12AA Rejection of application--Assessee-trust had started a bachelor degree course in the field of architecture and the college was affiliated to University of Nagpur whose fee structure was decided and monitored by a Central Government Department. It made an application for registration under section 12A. Commissioner rejected the application for registration as there was some accounting irregularities and institution was not being operated wholly for educational purpose but for commercial purpose. Held : Was not justified, as for the registration of the institution, the Commissioner has to satisfy himself about the object of the institution and genuineness of the activities of the institution and not about the nature of the income. If the object of the institution falls within the definition of charitable purposes under section 2(15) and the institution is genuinely carrying out such object, the Commissioner must grant registration to the institution. It was rightly emphasised that none of the objects was against public policy and the main activity of the trust was to provide education to students of architecture as per the course approved by the appropriate authorities and the admission policy, and the fee structure endorsed by the Government of India. The objects, therefore, could not be said to be the objects, which run against public policy or did not fall within the category of activities, which were for charitable purposes.

Income Tax Act, 1961 Section 12AA

Income Tax Act, 1961 Sections 12A and 2(15)

In The ITAT, Nagpur E Bench

R.K. Gupta, J.M & Rajendra, A.M.

Swargiya Jagannath Jattewar Shikshan Sanstha v. CIT

ITA No. 128 (Nag) of 2011

31 December, 2012

Appellant by : Alok Arun Kumar Bhagat

Respondent by : M. Bhusari

ORDER

Rajendra, A.M.

Present appeal has been filed by the Assessee-Trust challenging the order of the Commissioner -III, Nagpur dt. 24-06-2011. Following Grounds of Appeal have been raised by the assessee :

'(1) Having regard to the facts and circumstances of the case, learned Commissioner has erred in law and on facts in rejecting the application for registration under section 12A of the Income Tax Act, 1961 filed by the Appellant which is an Educational Trust and that too without giving adequate opportunity of being heard and on the basis of such considerations which are not germane to the issue before him.

(2) In any view of the matter and in any case, action of the learned Commissioner in refusing the registration under section 12A is bad in law and against the facts and circumstances of the case and is contrary to the principles of natural justice, and the Appellant ought to have granted registration under that section.

(3) The appellant carves leave to amend, alter or delete any of the above grounds of appeal.'

2. Assessee-Trust made an application for registration under section 12A of the Income Tax Act, 1961 (Act) in form No.10A on 2-12-2010. On 9-6-2011, a notice for hearing for verification of documents was issued to the assessee from the office of Commissioner of Income Tax-III, Nagpur. On 24-6-2011, an order under section 12AA of the Act was passed by the Commissioner rejecting the registration of application of the assessee.