TaxTMI 
TaxTMI 
TaxTMI 
2022 (5) TMI 1146
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....ief fact is that the appellant is a society registered u/s Society Registration Act, 1860 bearing registration no. ASR/129 of 2009-10 and is running a school in the name of "Shaheed Bhagat Singh International School". The society was established on 08.09.2009 with the objects to establish, maintain and / or run schools, colleges, universities Technical & Professional Institutes and other development /advancement of society without any distinction between caste, creed and religion. The society filed an application for registration u/s 12A in Form No.10A on 20.06.2019 before the ld. CIT(E). The ld. CIT(E) rejected the application in the following reasons; i. Absence of dissolution clause in the Memorandum Of Association. ii. The aims and ....
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....y and as is essential to do so it is resolved as under: "The Society shall continue to exist and if on any unavoidable circumstance the society has to closed and wound up then the assets created in name of society plant machinery building any movable or immovable assets so created will be used only for educational acts and no other personal benefit of the members of the society. On closure the assets will be transfered only to another society running for educational activities and will not dispose off the assets so created for profit or other benefits of the members of the society." 5.2. As per the Mr Kapoor, the certified copy of the amended MOA and Rules and Regulation was asked by the revenue. But the executed registered deed was rece....
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....n MOA, but no activity was done to run the coaching centre. The same is evident from the Income and Expenditure Account which was submitted during the assessment proceedings for assessment year 2017-18 and 2018-19. Both the Income and Expenditure Account and the related assessment order of the NeAc for assessment year 2017-18 and 2018-19 are enclosed in the paper book from the page no. 57 to 67. In this respect the ld. Counsel relied on the judgment in the case of Yogiraj Charity Trust Vs. CIT 103 ITR 777 in which it has duly been stated that the registration cannot be denied based on existence of any ancillary object. In the present case the appellant had never provided any activity other than the education of student enrolled in the schoo....
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....ements in systematic manner leading to doubt on genuineness of affairs, whereas the assessee has duly been assessed to income tax proceedings on regular basis and books have duly been accepted. ii) It is a matter of record that the case of the appellant was selected by the department for AY 2011- 12. 2017-18 and AY 2018- 19. In all the years. Income Tax Return was accepted as filed by the department. The copy of Assessment order completed u/s 143(3) for the A.Y 2011-12,2017-18 and 2018-19 is enclosed at page no. 57-61 of paper book. Since, in the earlier years, the income of the assessee has been accepted by the department and the assessment in earlier year was completed without making any addition to the income of the appellant on the sa....
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....claimed application in any of the previous years and considering the amendment in section 11(6) depreciation shall not be allowed while computing income subject to application against those assets which have been treated as application in earlier years. Therefore, it is pertinent to mention or a mere reason that depreciation was not claimed up to 2014-15 and claimed from cannot render the books of accounts unreliable/ unsystematic. vii) The CIT(E), before alleging that the financial statements were not being maintained in systematic manner, must bring on record material on the basis of which he has arrived at the conclusion with regard to correctness or completeness of the accounts of the assessee or the method of accounting employed by i....
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.... The assessee-society was denied the registration for three reasons which are discussed above. The resolution was taken for dissolution cluase which was informed to the ld. CIT(E). The registered amended-MOA was received by assessee-society in hand after rejection order of revenue. All three reasons are not proper indication for rejecting the application of registration u/s 12A. For registration u/s 12A the steerage of the Act is that the identity of assessee and the activity relating to the main object of the society. In following two points was not properly considered by the ld. CIT(E). The maintaining a coaching centre only was incorporated in the order of the CIT(E). But no proper verification was done from the books of account and from....