Case Law Details
Director of Income Tax Vs ST.ANN’s Education Society (Karnataka High Court)
The issue under consideration is whether the Income Tax benefit under section 10 and 11 will be granted on the basis of registration under section 12AA?
In the present case, the assessee, St. Ann’s Education Society was registered as a society under the Karnataka Societies Registration Act with the object of establishing and conducting Nursery, Primary and Middle Schools and technical training institutes, teachers training school, adult education, tutorial college, child care center, crèche, etc. The assessee filed an application for grant of registration under Section 12A(a) of the Act. A communication was issued to the assessee calling for certain details including an audited statement of accounts in Form No.10B for the last 5 years and details of furnishing of returns of income. The assessee filed a reply and furnished audited accounts and stated that assessee is engaged only in the advancement of education, its income is exempt under Section 10(22) of the Act and no returns of income have been filed.
HC states that, an application under Section 12A of the Act on 17.09.1999 and order on the aforesaid application has been passed beyond a period of six months i.e., on 30.10.2001. Therefore, in view of law laid down by Supreme Court, the registration under Section 12A of the Act shall be deemed to have taken effect after six months from the date of presentation of the application i.e., 18.03.2000. Further, the appeal is disposed of with the observation that the mere grant of registration to the assessee shall not result in grant of benefit to it ipso facto under Sections 10 and 11 of the Act and if any, regular assessment is pending, the same may be completed in accordance with law. Accordingly, the appeal filed by revenue is disposed of.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
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