Case Law Details
Shiv Public School Managing Committee Vs. CIT (Exemptions) (ITAT Delhi)
1. Briefly stated the facts necessary for adjudication of the controversy at hand are : the application moved by the assessee society for registration under section 12AA of the Income-tax Act, 1961 and for according sanction u/s 80G(5)(vi) of the Act have been rejected by the ld. CIT (Exemptions) on the grounds inter alia that gross receipts in all the five years are far in excess of Rs. 1 crore and the assessee society has wrongly claimed exemption u/s 10(23C)(iiiad) of the Act; that assessee society have been charging fee from students under various different heads featuring in the income and expenditure statement and that the land in question on which the senior wing of the school is being run has been taken on lease from the founder members of the society while the junior wing of the school is being run on the land which was donated by M/s. Agarwal Sabha Sohna; that since the land in question on which the main school is running does not belong to the society, the property in question for charitable purpose also remains in question. Consequent upon rejection of registration u/s 12AA, the CIT (E) also rejected the application moved by the assessee society u/s 80G of the Act.
2. Feeling aggrieved, the assessee company has come up before the Tribunal by challenging the impugned orders passed by ld. CIT by way of filing the present appeals.
3. Undisputedly, assessee society being in existence since 21.08.1987 has been running a school under the name and style as Shiv Public School. It is also not in dispute that the amended memorandum of association of the assessee society has been registered with the Registrar of Societies in the month of 08.01.2014. It is also not in dispute that the assessee society has not been granted any kind of exemption since its inception for the last so many years. It is also not in dispute that assessee society has claimed exemption u/s 10(23C)(iiiad) of the Act since FY 2011-12 despite the fact that its total receipt during the FYs 2011- 12 to 2014-15 was more than Rs.1 crore.
4. Undisputedly, under the amended provisions of section 2(15) of the Act imparting education falls within the charitable purpose. No doubt, for providing registration u/s 12A of the Act, Commissioner is empowered to call for any information/ documents from the society to satisfy himself about the object of the society and the genuineness of its activities, but at the same time, CIT is not to sit over the application u/s 12A as an Assessing Officer for this purpose.
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