TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 37
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....laiming the following substantial questions of law:- I. Whether on the facts and circumstances of the case and in law, the ITAT has erred in directing the registration to be accorded instead of reverting it back for re-examination in the light of judgment of The Hon'ble Allahabad High Court in appeal No. 112 of 2013 in the case of CIT, Meerut Vs. M/s A.R. Trust, Meerut, wherein it was held that the Tribunal could have ordered for setting aside the order of Registering Authority refusing registration but it could not have directed for registration straight away inasmuch as there has to be satisfaction recorded by the Registering Authority which was lacking? II. Whether by compromising on education by paying paltry salaries (and not....
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....order of the Appellate Tribunal is contrary to the evidence and material on the record of the case and, therefore, perverse? 2. A few facts necessary for adjudication of the instant appeal as narrated therein may be noticed. The assessee is an educational society registered on 19.9.2003 under the Societies Registration Act, 1860 and since 2003 has been running educational institutes for education. It filed an application dated 15.3.2016 in Form 10A for registration under Section 12AA of the Act. The Commissioner of Income Tax (Exemptions) [for brevity "the CIT(E)"] vide order dated 30.9.2016 (Annexure A-1) rejected the said application by observing as under:- "8. XX &nbs....
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....itles the educational societies to go for 10(23C)(vi) in such cases. There are no fresh circumstances projected that would warrant examination of the eligibility of the institution under a different code with different conditionalities. 9. Notwithstanding the same, the claim for registration u/s 12AA was examined. The Audited accounts reveals that over the period of time the emphasis of the society is mainly on creation of assets rather than on redeployment of funds towards education. The Income & Expenditure statements and Balance Sheets further indicate that during the F.Ys. 2014-15 and 2015-16 the emphasis of the society has been mainly on adding to their car, motorcycle, scooter." 3. Feeling aggrieved, the assessee filed an appeal ....
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....he CIT(E) that the emphasize of the society was mainly creation of assets rather then redeployment of funds towards education, the Tribunal had noticed that during the financial year 2014-15 value of car, motorcycle and scooter were Rs. 2.17 lakhs and in 2015-16, it were Rs. 2.30 lakhs and the society surplus amount was @ 5.52% only, which cannot be termed as higher and certainly to run institute, the vehicles were required. Further, the apprehension and assumption of the CIT(E) that the society must be charging some funds, was based on the assumption and surmises and had no logical reasoning. Accordingly, the Tribunal has rightly directed the CIT(E) to grant registration under Section 12AA of the Act to the assessee. The findings recorded ....
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....ld 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), our attention was drawn by the Ld. AR to the audited balance sheet, where it is clearly shown that during the F.Y. 2015-16 value of car, motorcycle and scoter were 2.17 lakh and in 2015-16 it were 2.30 lakh and the society surplus amount was @ 5.52 % only. We are in agreement with the assessee that the surplus @ 5.52 % cannot be ....