TaxTMI 
TaxTMI 
2022 (5) TMI 1146
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....9-20/1023142872(1) dated 26.12.2019. 2. Brief 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 i....
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.... disposal of the assets so created in achievement of goals of society. At the Meeting held today 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 ....
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....purpose. 6.1. In this context Mr Kapoor mentioned that in the object clause maintaining coaching centre is not primary object. Though it is mentioned in 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 exis....
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....tic manner i) The Ld. CIT(Exemption) has grossly erred in law & facts by stating that non claim of depreciation in a year indicates non maintenance of financial statements 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,....
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....d started to claim the same from F.Y. 2015-16. The said claim was made for the first time due to the amendment made by finance act 2015. It is matter of record that the appellant society had not 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,....
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....ssessment U/s 143(3) of the Act related maintenance of books of accounts. The ld CIT(E) did not recognise any specific lacuna in the books of assessee. 7.3. We considered the rival submission and documents available on record. 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 socie....