2017 (8) TMI 1531

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.... 12AA of the Income-tax Act, 1961 is against law and facts on the file in as much as the Ld. Commissioner of Income Tax (Exemption), Chandigarh was not justified to arbitrarily hold that the appellant did not fulfill the conditions for grant of registration u/s 12A of the Income Tax Act,1961. 2. That order u/s 12AA of the Income-tax Act, 1961, is against law and facts on the file in as much as the rejection of application for registration is on the basis of grounds which are irrelevant and unfounded." 3. The assessee is an educational society registered on 19.09.2003 under the Societies Registration Act, 1860 and since 2003, has been running educational institutes solely for education and not for purpose of profit and the receip....

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....l and in support of its case , Ld. AR , submitted that society has been existing for the objects of providing education and it is not in controversy. Further the genuineness of the activities of the assessee can be gathered from the achievements of the assessee because the assessee running two educational institutes at Jalalabad and making for the skill development programmes of Govt. of India and the Ld. CIT(E) lost sight to the facts that the society has been filing return of income and claiming exemption u/s 10(23C)(iiiad) of the Act and the said exemption was given without any questions. Further, it was submitted by the Ld. AR that it is the prerogative of the assessee to file application either u/s 12A or u/s 10(23C)(vi) and further su....

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....erse observation regarding genuineness of the objects or the activities carried on by the society then registration u/s 12AA could not be denied on the ground that it was entitled exemption under any other provision. Further in the case of CIT vs. Bosotto Brothers Limited [(1940) 8 ITR 0041(Mad)], Hon'ble Madras High Court held that if a case appears to be governed by either of two provisions, it is clearly the right of the assessee to claim that he should be taxed under that one which leaves him with a lighter burden. Meaning thereby, if, exemption is available to the assessee in two or more sections then the choice is for the assessee under which section exemption has to be claimed. With regard to the another objection of Ld. CIT(E), o....