TaxTMI 
TaxTMI 
TaxTMI 
2018 (7) TMI 1726
X X X X Extracts X X X X
X X X X Extracts X X X X
.... concluded that the aims & objects of the Society are vague and unspecific. 4. That the ld. CIT has passed the order in haste and is against the facts, law and provisions of the Income Tax Act, 1961 and Rules made there under. 5. That the ld. CIT had wrongly ignored the fact that the appellant trust exists solely for educational and charitable purpose and not for the purpose of profit." 2. In brief, the facts of the case are as under:- The assessee society has applied for registration under section 12AA of the Act in Form No.10A on 31.03.2014. For consideration of the same, the show-cause notice dated 22.07.2014 was issued to the assessee society which was replied by the assessee society vide reply dated 30.07.2014. Thereafter, again vide letter dated 15/17.09.2014, the assessee society was asked to file copy of the prospectus of school/institution run by the society which was also replied by the assessee society vide letter dated 25.09.2014 by enclosing prospectus of Sheetla Vidya Peeth School. Thereafter, the case of the assessee society was considered by the ld. CIT and finally declined to grant registration as applied u/s 12AA of the Act by citing certain reasons which....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Om Shiva Education & Welfare Society vide order dated 26.09.2014 declined to grant registration u/s 12AA of the Act by citing exactly the same reasons , which are relevant and hence, reproduced herein below:- "8.1 The applicant society is non-cooperative and did not furnish the required information/details willfully and intentionally just to avoid verification:- i) Books of accounts were not produced as called for vide letter dated 22.07.2014 and 15/17.09.2014. ii) Copy of old registration certificate and old memorandum have not been furnished as called for vide this office letter dated 22.07.2014. iii) Proper details of head-wise break-up of school fee and expenses against each head of fee have not been furnished as called for vide letter dated 15/17.09.2014. 8.2 The applicant society has not furnished evidence regarding compliance of the Right to Free and Compulsory Education Act, 2009, which envisages 25% admission to the wards of parents belonging to economic weaker section. The applicant did furnish a list of 113 names of students saying that these are not being charged any fee and this constitutes about 10% of total students strength. However, the applicant did....
X X X X Extracts X X X X
X X X X Extracts X X X X
....its activities has also been accepted. Therefore, the factum of carrying charitable activities as also the genuineness of activities is established. Therefore, both conditions for getting satisfaction u/s 12AA are met with and therefore assessee is eligible for registration u/s 12AA of the Act. The Hon'ble Tribunal in the case of Regional Educational Development and Welfare Society vide its order dated 4/10/2017 after following a number of cases decided by Hon'ble Supreme Court and various High Courts vide Para 6 to 9 has allowed the appeal of the assessee by holding as under:- "6. We have heard the rival submissions and have also perused the material on record. It is an admitted fact that the assessee society exists for education purpose only which has been duly recorded in Para 2.3 of impugned order. Further, three consecutive orders passed u/sl43(3) of the Income Tax Act have accepted assessee's claim of exemption u/s 10(23C)(iiiad). Thus, there remains no doubt that the objective of the assessee society is 'education'. The Hon'ble Punjab & Haryana High Court made the following observations in the case of Sonepat Education Society (supra): "....It is well-settled that ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pear to exist only on paper. This coupled with the fact that the department has also accepted the assessee's claim of exemption u/s 1023C (iiiad) for three consecutive years leaves no doubt about the genuineness of the objects of the society. We also find support from the observations of the Hon'ble Punjab and Haryana High Court and the Hon'ble Kerala High Court as reproduced above. Accordingly, we reverse the order passed by the Ld.CIT(A) and direct him to grant registration to the assessee society." 7. The facts in the present case are para materia with the facts in the case law relied on by Ld. AR except the objection with regard to diversion of funds which though we feel that there do not seem to be any diversion as the building of President which he had given to society without consideration was being utilized for educational purposes and any expenditure thereon will again be said to be incurred for educational purposes only but even then Assessing Officer during assessment proceedings can always look into the provisions of Section 13 to disallow Exemption u/s 11 if he finds any violation including diversion of funds as mentioned in Section 13 of the Act. 8. The case law....