TaxTMI 
TaxTMI 
2019 (4) TMI 1119
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.... registration u/s 12AA without considering properly the explanations and evidences submitted by the Appellant in support of its application. 2. On facts and circumstances of the case and in law, the learned Commissioner (Exemptions) also erred in passing his aforesaid order without granting Your Appellant an adequate opportunity of being heard. The orders passed by him is in contravention of the principles of natural justice and hence, bad in law. 3. The Appellant reserves the right to add to, alter or delete any of the above grounds with permission of Hon'ble Tribunal." 3. This appeal is filed by the assessee challenging decision of Ld. CIT(Exemption) rejecting registration of the assessee u/s. 12A of the Act. The assessee filed application in Form No. 10A on 15.11.2017 with learned CIT(E) for grant of registration u/s 12A. The assessee was registered as public trust with office of Assistant Charity Commissioner, Mumbai on 18.10.1972, having registration No. F- 2392, Mumbai. The assessee was asked by Ld. CIT(E) to submit documentary evidences and note on its activities to prove genuineness of its activities and objectives. The assessee submitted d....
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....ity Commissioner on 18.01.1972, with permission from the Education Department on 22.04.1969 to run the affairs of the school, yet the school was run in the individual capacity that too by one of the trustee. B) There was no compliance with the Charity Commissioner. No regular books of account maintained for the trust, though as per the The Bombay Public Trusts Act, 1950, also following records are to be maintained regularly. (a) As per Section 32 r.w.r.17 of the BPT Act, the trust is expected to maintain regular accounts of i. All receipts of movable and immovable property, ii. All encumbrances created on trust property. iii.All payments made and alienations made on behalf of the public trust. iv.All other particulars that will facilitate preparation of Balance sheet and Income and Expenditure in prescribed form (i.e. Schedule VIII and income liable to contribution in Schedule IX-C). No books of accounts as mentioned were maintained by the applicant trust. (b) As per section 33 and 34 of the BPT, accounts to be audited and audit report to be submitted to the Charity Commissioner. As the books ....
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....,281 44,072 -5,64,085 Primary -11,945 21,340 11,965 48,839 1,82,752 4,17,538 3,78,452 3,18,814 8,90,163 8,91,459 -2,70,442 8, 2 2,012 Secondary 83,656 39,408 12,957 -6,016 5,929 3,18,920 3,40,668 2,06,796 -2,39,856 6,31,909 9,26,996 10,89, 603 Total Profit 32,564 21,430 34,515 5,426 1,97,144 6,80,393 7,94,245 8,04,545 7,26,840 19,30,649 7,00,626 13,47,530 6. As per the provisions of Section 12AA(1)(b), a trust is to be granted registration if the Commissioner is satisfied about the objects of the Trust and the genuineness of its activities. Both these requirements are cumulative and not alternative. There can be no doubt that the onus is on the applicant to produce all relevant documents/information etc so as to enable the registering authority to arrive at the requisite satisfaction about the objects of the trust and the genuineness of its activities. The satisfaction of the registering authority cannot be a subjective satisfaction based on whim or caprice. It has to be a bona fide and objective satisfaction, based on due application of mind to a cert....
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....died sometime in 2009. No PAN in name of Appellant. No compliances of Appellant with Charity Commissioner Income Tax Returns were filed by Smt. Sushila Khairajani up to Assessment Year 2009-10. These returns show school income and taxes paid thereon as well as her Salary and Rental Income. Copies of her income tax returns for Assessment Years 2006-07 to 2009-10 given to CIT 2009 to 31st March 2017 Returns filed by her Estate showing school income and taxes paid. Copies of income tax returns for Assessment Years 2010-11 to 2016-17 given to CIT. Income Tax Return for A.Y. 2017-18 could not be uploaded online due to technical difficulty. Copies of computation of income & Audited Accounts submitted to CIT 1-4-2017 Onwards Phase no 3 [ The Correction Phase by New Trustees appointed by Charity Commissioner] 12-07-2017 Order passed by before Joint Charity Commissioner, Maharashtra State, Mumbai appointing in proceedings u/s 47 of Maharashtra Public Trusts Act, 1950 appointing new trustees (Rajesh Khairajani & Others} Extract from Charity Commissioner's records - register entries of new trustees appointed. 09-08-2017 Applicatio....
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....registration u/s 12A have been complied as under :- Objects are educational - Objects are educational as per the Memorandum & Articles of the Appellant Society- Page 14 of paper book. CIT has not controverted this. The activities are genuinely educational- (i) No dispute that school is in running. (ii) The school is non-aided. School caters to students poor and middle class families. Fees charged (about Rs. 1300 per month) are far less that charged by other schools in the vicinity ( Rs. 1,500 to Rs. 1,800 per month), (page 95 of Paper Book). Also details submitted of poor students whose education is imparted under the Right to Education Act for last five years (Page 85 of paper book). It is claimed by the Ld. Counsel for the assessee before the Bench that in first phase which was from 1967 to January 1972 , the registration of the assessee was done under Societies Registration Act , recognition was given by Education Department to new Model English High School and registration of the assessee was also done with Charity Commissioner as public trust. Then it was explained by learned counsel for the assessee that no doubt in phase two which was upto March....
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.... the matter may be restored to the file of Ld. CIT(Exemption) to consider all the evidences/explanations including fresh evidences/explanations again and then decide the issue of grant of registration u/s 12A on merits un-influenced solely by the errors and mistakes committed in past. It was explained that now the assessee has also filed return of income for AY 2018-19 in its name wherein income from school is duly offered for tax as per law. The Ld. CIT-DR objected to the contentions raised by the assessee and relied upon the order passed by Ld. CIT(Exemption) but fairly submitted that the matter may be restored back to the file of the Ld.CIT(Exemption) for having a fresh look on the entire material including fresh evidences/explanations now brought on record by the assessee before the Bench. 5. We have considered rival contentions and perused the material on record. We have observed that the assessee is registered with Assistant Charity Commissioner, Mumbai on 18.01.1972 as public trust having registration number F-2392(Mumbai). The assessee was constituted on 27.09.1967 as society under Societies Registration Act. We have also observed that the school namely New Model Engl....
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....'s reply and all other documents, following facts/issues raised serious doubts over the genuineness over the activities and objects of the trust; A) Although the trust was formed in 1968 and registered with Charity Commissioner on 18.01.1972, with permission from the Education Department on 22.04.1969 to run the affairs of the school, yet the school was run in the individual capacity that too by one of the trustee. B) There was no compliance with the Charity Commissioner. No regular books of account maintained for the trust, though as per the The Bombay Public Trusts Act, 1950, also following records are to be maintained regularly. (a) As per Section 32 r.w.r.17 of the BPT Act, the trust is expected to maintain regular accounts of i. All receipts of movable and immovable property, ii. All encumbrances created on trust property. iii.All payments made and alienations made on behalf of the public trust. iv.All other particulars that will facilitate preparation of Balance sheet and Income and Expenditure in prescribed form (i.e. Schedule VIII and income liable to contribution in Schedule IX-C). No book....
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....Y.201011 A.Y.201111 A.Y.201213 A.Y.20I314 A.Y.201415 A.Y.201516 A.Y.201617 A.Y.2017-18 K.G section -39,147 -39,318 9,593 -37,397 8,463 -56,065 75,125 2,78,935 76,533 4,07,281 44,072 -5,64,085 Primary -11,945 21,340 11,965 48,839 1,82,752 4,17,538 3,78,452 3,18,814 8,90,163 8,91,459 -2,70,442 8, 2 2,012 Secondary 83,656 39,408 12,957 -6,016 5,929 3,18,920 3,40,668 2,06,796 -2,39,856 6,31,909 9,26,996 10,89, 603 Total Profit 32,564 21,430 34,515 5,426 1,97,144 6,80,393 7,94,245 8,04,545 7,26,840 19,30,649 7,00,626 13,47,530 6. As per the provisions of Section 12AA(1)(b), a trust is to be granted registration if the Commissioner is satisfied about the objects of the Trust and the genuineness of its activities. Both these requirements are cumulative and not alternative. There can be no doubt that the onus is on the applicant to produce all relevant documents/information etc so as to enable the registering authority to arrive at the requisite satisfaction about the objects of the trust and the genuinenes....