2023 (5) TMI 1365

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....he following identical grounds of appeal: "1. That on facts and the circumstances of the case and the provisions of law, rejecting the application of the assessee society for grant of registration under section 10(23C)(vi) of the Income Tax Act, 1961 is incorrect and unjustified. 2. The appellant craves permission to raise additional grounds and to amend or alter the foregoing ground before the appeal is finally decided." 2. Since, both the appellants have raised the sole issue on identical facts for grant of registration under section 10(23C)(vi) of the Income Tax Act, 1961 and hence, these appeals were heard together and disposed of by this consolidated order for the sake of brevity. 3. At the outset, the Ld. Couns....

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....in objections on the Bye-laws of the Assessee Society. No opportunity was provided to the assessee to submit explanation on the observations of the Worthy CIT(E) on the basis of which applications for approval were rejected. The appellants therefore pray before the Hon'ble bench to allow submission of additional evidence to clarify and respond to the objections raised by the Worthy CIT(E) in the Order rejecting the applications for approval under section 10(23C)(vi) of the Income Tax Act, 1961." "THE APPELLANT MOST RESPECTFULLY SUBMITS THAT: S.M.D.R.S.D. College Society, Pathankot was registered under the Societies Registration Act, 1860 in 1979 vide Registration No.34 of 1979-80. The College, i.e. S.....

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.... and are using the PAN of the S.M.D.R.S.D. College Society, Pathankot which was registered under the Societies Registration Act, 1860 in 1979 vide Registration No.34 of 1979-80. Thereby, these M/s S.M.D.R.S.D. College Education and M/s SMDRSD Collegiate Senior Secondary School running under the management of the S.M.D.R.S.D. College Society, Pathankot and using its PAN cannot be treated as an independent entity for the purpose of registration u/s10(23C)(vi) of the Income Tax Act, 1961. However, He has no objection in restoring the matter to the PCIT for one more opportunity to the appellants. 5. We have heard rival contentions, perused the material on record, impugned order, written submission filed before us. The PCIT discussed that on ....

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....ciety but the same is not borne from the facts of the case. Relying on the Hon'ble ITAT Amritsar in the case of G.D. Kavita Singla Charitable Trust Vs. CIT-II Amritsar (ITA No 594 (ASR) 2013), he held that the benefit of registration under section 12AA of the Act, cannot be granted to a trust controlled by a single family. The powers of keeping the society properties and rights in own hands of the family invite the coverage of the aforementioned decision. Accordingly, he held that the societies were not for the benefit of general public and denied the registration to the applicant u/s 12AA of Income Tax Act, 1961, although the appellants sought for registration u/s 10(23C)(vi) of the Income Tax Act, 1961. 7. It is evident from the above,....