2018 (12) TMI 125

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....itsar Bench, Amritsar (hereinafter referred to as "the Tribunal") in ITA No. 546/(ASR)/2016, claiming the following substantial questions of law:- "I. Whether on the facts and circumstances of the case, the order of the ITAT is not perverse in holding that the CIT has not made adverse remarks on the objects and activities of the applicant and thereby directing to grant registration to the applicant whereas the CIT had clearly established that the applicant was operating on commercial principles and eligible for registration? II. Whether on the facts and circumstances of the case, the order of the ITAT is not perverse in holding that non filing of return of income is not a valid ground to deny registration u/s 12AA of the I....

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....an on re-deployment of funds towards education and to add their vehicles and buses; the transportation charges being earned by the assessee were approximately 40% of the fee income received from the students and the fee structure was not in sync with the instruction issued by the Central Board of School Education while providing affiliation to an entity; and that the assessee had faltered on statutory requirements of filing returns of income despite receipts in excess of Rs. 2 crores every year. Feeling aggrieved by the order, Annexure A-1, the assessee filed an appeal before the Tribunal. The Tribunal vide order dated 7.3.2017 (Annexure A-2) allowed the appeal and directed the CIT(E) to grant registration to the appellant-society forthwith....

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.... Accordingly, the Tribunal directed the CIT (E) to grant registration to the respondent. The relevant findings recorded by the Tribunal in paras 6 to 8 of the order read thus:- "6. While refusing registration to the assessee society, the Objection raised by the ld. CIT(E) is that the applicant has amassed capital funds to the tune of Rs. 5.59 crore and fixed assets to the extent of Rs. 5.85 crore. This observation, it is seen, impinges on neither the objects of the applicant, nor the genuineness of its activities. It has been submitted before us that the assets of the applicant, i.e., its land and building etc., have been created out of donations received for the setting up of the school of the society. As per Object (APB-1), as se....