TaxTMI 
TaxTMI 
2015 (11) TMI 479
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....vasa Educational Society" filed an application for registration u/s 12A of the Income-Tax Act (hereinafter called 'Act') along with form no.10A on 14.6.2013 before the Commissioner of Income-Tax, Rajahmundry with the following objects:- 1. This society is organized to establish educational institutions to serve the poor people. 2. To bring the academic, technical and medical education to the poor rural people of India. 3. The society will start institutions like Schools, Junior Colleges, Degree Colleges, P.G. Colleges, DIET Institutions, College of Education, Engineering Pharmacy, Nursing, Medical and Paramedical Colleges and other such institutions for both men and women. 4. To help the students of poor people of weaker sections to acquire the academic and technical education to participate in rebutting the nation. 5. To give priority to the Scheduled Tribes and Scheduled Caste men and women to get well educated. 6. To conduct seminars, symposiums, worships and invited experts from India and abroad to improve the quality of education and to support the students to elevate themselves to the international standards. 7. To promote adult education schools for erad....
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....ering the objects of the society on flimsy grounds, rejected the registration u/s 12A of the Act to the assessee. He further submitted that fee collected from the students used for carrying out the objects of the society. In so far as objections raised by the Commissioner in respect of the corpus donations, it was submitted that the promoters of the society has advanced a sum of Rs. 33,50,000/- & Rs. 21,00,000/-. As and when funds are required by the society, the promoters have donated these funds for construction of the college building. These details were considered by the A.O. relating to the assessment year 2011-12 u/s 143(3) of the Act. Therefore, it cannot be a subject matter for the Ld. Commissioner to consider for granting registration u/s 12A of the Act. He further submitted that for the purpose of registration u/s 12A of the Act, there is no requirement for getting the society registered with CCIT u/s 10(23C) of the Act and prayed for grant of registration u/s 12A of the Act to the assessee society. He also relied on the various case laws as follows: 1. 327 ITR 73 (P&H) Pinegrove International Charitable Trust & Ors. Vs. Union of India & Ors. 2. 353 ITR 32 (Del) St.....
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....pose of imparting education in the year 2004 and get registration under A.P. State Societies Registration Act on 16.1.2004. The society has been filing its return of income regularly in the status of AOP trust. The assessee society applied for registration u/s 12AA of the Act by application dated 14.5.2013 by filing all the details before the CIT. 7. The Ld. CIT has rejected the claim of the assessee u/s 12AA of the Act mainly for the following reasons: 7.1 The assessee society activity is running educational institutions collected full fee from other students as a commercial activity. The President of the society enjoys extra ordinary power prerogative and discretionary power to give free education to the poor and needy students. The assessee society failed to produce confirmation letters in respect of unsecured loans taken. The society also failed to register itself with the CCIT u/s 10(23C) of the Act. It is a fact that the assessee society existed for the purpose of imparting the education and running various educational institutions since 2004. There is nothing on the record that the assessee society is collecting more fee than the fees prescribed by the concerned author....
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....with the Chief Commissioner of Income-Tax u/s 10(23C) is concerned, it is not mandatory for the assessee before claiming exemption u/s 12A of the Act that the assessee should register with Chief Commissioner of Income-Tax u/s 10(23) of the Act. In view of the above, we find that Commissioner without considering the objects of the assessee society and simply rejected registration u/s 12A of the Act on flimsy grounds. So far as amendments made by the assessee in respect of Memorandum of Association. We have also gone to the resolution dated 19.10.2013. The assessee society called the extraordinary general body meeting rectified certain mistakes. Those rectifications are nothing to do with the grant a registration u/s 12A of the Act. The Ld. D.R. has pointed out that from the assessment order, assessee is running the business of education. There is nothing on the record to show that assessee is running education as a business. Therefore, this argument is rejected. 7.3 One of the another argument raised by the Ld. D.R. that assessee is only providing free education to 3 students. In this context, we observe that the assessee society committed for the education and running the educat....
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....o far as the genuineness of its activities are concerned, the CIT(A) has not brought any specific instance which could prove that the activities of the society are not genuine. So far as application for registration u/s 12A of of the Act by the assessee dated 14.6.2013 is concerned, it is open to the assessee to make an application as per law. There is no time frame fixed by the Act that the assessee society has to make an application immediately when the society is constituted. The Commissioner has to examine the objects of the society and genuineness and accordingly registration u/s 12AA of the Act has to be granted. Therefore, once the conditions of section 12A of the Act are satisfied, the CIT(A) cannot deny the registration on extraneous conditions. 9. In the case of Commissioner of Income Tax Vs. RMS Trust 326 ITR 310, the Hon'ble Madras High Court has observed that at this stage of the considering the application for registration u/s 12A of the Act, only enquiry which would possibly be made would be whether the applicant trust has made an application, whether the accounts are maintained in the manner as suggested in the said section, the CIT(A) was not justified in reject....