Case Law Details
B.C. Sharma Memorial Society For Education & Social Welfare Vs CIT (ITAT Lucknow)
We have heard the rival parties and have gone through the material placed on record. We find that is an admitted fact that the objects of the society, as mentioned in the bye-laws placed at page No. 4 of the paper book, are charitable in nature. The CIT (Exemptions) has also not doubted the charitable nature of the objects and he has rejected the application by holding that there was no cogent or corroborative evidence to prove the genuineness of activities whereas the fact remains that the assessee had filed copies of balance sheet and income and expenditure account for the financial year 2012-13 to 2014-15 and had also filed copies of income tax return which clearly establish that assessee was running a school. Therefore, this finding of CIT (Exemptions) that genuineness of the activities could not be verified is not based upon the facts. As regards the objection of CIT (Exemptions) that Form-10B was not submitted, we find that there is no requirement under the law to file Form-10B at the time of registration. It needs to be filed along with return of income and therefore, this objection of CIT (Exemptions) is not relevant.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This is an appeal filed by the assessee against the order of CIT (Exemptions) passed u/s 12AA of the Act.
2. At the outset, Learned A. R. submitted that assessee is running a school and had been claiming exemption u/s 10(23C)(iii) and now the assessee had applied for registration u/s 12AA which the CIT (Exemptions) has refused relying on the provisions of section 13(1)(c) of the Act. Learned A. R. submitted that at the time of registration u/s 12AA the only aspect which CIT (Exemptions) is expected to examine is object of the assessee and genuineness of the activities of the assessee for achieving of these objects. It was submitted that objects of the society are charitable in nature and a copy of the objects was placed in paper book pages 4 to 10. He submitted that vide para 8 of his order, CIT (Exemptions) has held that mere recital of objects or activities without cogent or corroborative evidence is not sufficient by themselves to enable a registering authority to grant registration. In this respect, Learned A. R. submitted that assessee had filed copies of balance sheet and income and expenditure for the financial year 201-13 to 2014-15, copy of which was placed at pages 14 to 27 of the paper book and had also submitted copies of income tax return for the above said year which itself proves that the assessee was running a school which was in consonance with the objects of the society. Learned A. R. in this respect relied on a judgment of Hon’ble Allahabad High Court in the case of CIT vs. Red Rose School as reported in 212 CTR 394 for the proposition that at the time of granting registration the CIT (Exemptions) is empowered to examine the objects of the society and the genuineness of its activities. Regarding other objection raised by CIT (Exemptions) in respect of audit report in Form 10B, Learned A. R. submitted that Form 10B has to be submitted at the time of filing of return and at the time of claiming the exemption u/s 11 & 12 of the Act and it is not required to be filed at the time of registration. Therefore, it was prayed that CIT (Exemptions) be directed to grant registration to the society.
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