Tribunal grants registration under Income-tax Act, overturning Commissioner's order

The Tribunal allowed the appeal, overturning the Commissioner's order and granting registration under section 12AA of the Income-tax Act to the assessee. The refusal based on non-compliance with Right to Education norms was deemed baseless as the assessee had adequately responded to the compliance requirement. The Tribunal found the sole reason for denial to be non-existent, leading to the grant of registration to the assessee.

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Issues: Refusal of registration u/s 12AA of the Income-tax Act, 1961 based on non-compliance with Right to Education norms.

Analysis:
1. Background: The appeal was filed against the Commissioner of Income-tax (Exemption), Pune's order denying registration u/s 12AA of the Income-tax Act, 1961.

2. Facts: The assessee, registered under the Bombay Public Trust Act, 1950, applied for registration on 15-01-2020, claiming engagement in educational activities. The Commissioner called for details on admissions to weaker sections and compliance with RTE norms.

3. Legal Provisions: The Commissioner cited section 12AA(1)(a)(ii) of the Act, requiring compliance with other laws in force. Non-compliance with RTE Act was deemed crucial for registration.

4. Assessee's Response: The assessee submitted a reply stating no requests were received under RTE norms, which was considered in the application. The Commissioner's refusal was based solely on this point.

5. Tribunal's Decision: The Tribunal found the assessee had responded to the compliance requirement adequately. The refusal was deemed baseless, as the sole reason for denial was non-existent. Consequently, the Tribunal directed the grant of registration u/s 12AA of the Act.

6. Conclusion: The appeal was allowed, overturning the Commissioner's order, and registration u/s 12AA was granted to the assessee. The decision was pronounced in the Open Court on 11th December 2020.

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