Case Law Details
Chokhraj Tulasyan Sarswati Vidya Mandir Inter College Vs. CIT (ITAT Lucknow)
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 a non profit association registered under the Societies Registration Act, 1860 for carrying out charitable activities. The assessee had applied for registration u/s 12AA which the CIT (Exemptions) has refused. 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 62 to 72. 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 audited financial statements for the financial year 2013-14 to 2015-16, copy of which was placed at pages 50 to 61 of the paper book and had also submitted copies of income tax return for the financial year 2014-15 and 2015-15, copy of which is available at pages 35 and 36 of the paper book, which itself proves that the assessee was running a college 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. Therefore, it was prayed that CIT (Exemptions) be directed to grant registration to the society.
3. Learned D. R., on the other hand, relied on the order of CIT (Exemptions).
4. 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 pages 62 to 72 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 audited financial statements for the financial year 2013-14 to 2015-16 and had also filed copies of income tax return which clearly establish that assessee was running a college. Therefore, this finding of CIT (Exemptions) that genuineness of the activities could not be verified is not based upon the facts.
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