2014 (7) TMI 473

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.... the case and in law the action of the learned CIT in refusing to grant registration u/s 12A of the Income Tax Act, 1961 is most arbitrary, palpably erroneous and grossly unjust. It is prayed that this action must be quashed with directions to grant the registration as sought." 3. Briefly stated the facts giving rise to this appeal are that the assessee society filed an application for registration u/s 12A of Income Tax Act, 1961 (for short the Act) which was rejected by CIT, Meerut with following observations and findings:- "The above submissions show that the society is running a NGO. As per note on backgrounds of NGO attached with the application it is noticed that it runs a play school from home. It is also noticed that as per page no....

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....und as reproduced hereinabove. 5. We have heard arguments and submissions of both the parties and carefully perused the record placed before us, inter alia, Paper Book filed by the assessee society spread over 51 pages. Ld. Counsel of the assessee submitted that the assessee society was started with a play school and presently the school is running classes upto 12th standard affiliated with CBSE, Delhi. Ld. Counsel of the assessee further submitted that apart from educational activity, the assessee society also organized health camps for welfare of economically and socially deprived children and their family members. Ld. Counsel further submitted that the assessee society also made charitable endeavors towards economically deprived persons....

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....gricultural land which will be used for agricultural purposes only. At this point, we take cognizance of the submissions of the ld. Counsel for the assessee that the land was purchased for expansion of school campus after change of land use. At this point, we also observe that the CIT has not brought out any fact that the land so purchased was misused or misappropriated by the management of the society and we clearly observe that the land so purchased has been regularly owned and controlled by the appellant society which cannot be said to be misappropriation or misuse of the funds of the society. The registration u/s 12A cannot be rejected only on the sole ground by ignoring other charitable activities of the society. We also observe that t....