2020 (6) TMI 199

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....08.2011 on following substantial questions of law: (i) Whether the tribunal was correct in holding that the objects of the assessee is of general public utility and is entitled to registration under Section 12AA of the Act in view of its earlier order in M/s Karnataka Golf Association? (ii) Whether the tribunal order is vitiated on account of non-consideration of legal evidence on record as set out in para 2 of the substantial questions of law in the appeal memo?   2. The facts leading to filing of this appeal in a nut shell are that assessee was registered as a society under the Karnataka Societies Registration Act on 14.10.1990 with the object of establishing and conducting Nursery, Primary and Middle Schools and....

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.... Tax (Exemptions) vide order dated 31.10.2001, inter alia found that admittedly, assessee had borrowed substantial amounts in cash from various persons at high interest rates and repayment and interest payments of such amounts have not been recorded in the regular books of accounts. It was held that the affairs of the association was not conducted in a transparent manner. It was noticed that for years 1994 and 1995, the assessee had admitted that some voluntary contributions from parents were received. It was held that aforesaid voluntary contributions are the amounts collected from the parents to grant admissions to their children in the schools. It was also held that the aforesaid amounts were collected illegally. On the basis of the entr....

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....thin six months has not been complied with. The tribunal therefore, set aside the order passed by the Director of Income Tax (Exemptions) and direct the authorities to proceed as if registration was granted under Section 12AA of the Act. 5. The revenue challenged the aforesaid order in ITA No.2791/2005. A division bench of this court by an order dated 21.04.2010, remitted the matter to the tribunal to consider the same afresh after reconsidering the decision in the case of 'KARNATAKA GOLF ASSOCIATION'. The tribunal by an order dated 07.01.2011 placing reliance on the decision of the tribunal in the case of 'KARNATAKA GOLF ASSOCIATION vs. DIRECTOR OF INCOME TAX (EXEMPTION) passed in ITA NO.175/BANG/2003 DATED 31.07.2003' inter alia held t....

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.... and therefore, substantial questions of law involved in this case have been rendered academic. It is also pointed out that block assessment proceedings were also initiated against the assessee, which has attained finality in view of order passed by division bench of this court in ITA Nos.1254/2006 and 1253/2006. However, it is fairly submitted by learned Senior counsel for assessee that mere grant of registration will not automatically entitle the assessee to the benefit of provisions of Section 11 and 12 of the Act.   7. We have considered the submissions made on both the sides and have perused the record. Admittedly, an application under Section 12A of the Act on 17.09.1999 and order on the aforesaid application has been passed b....