2025 (8) TMI 305

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.... filed an application for grant of approval under Section 80G of the Income Tax Act, 1961 (hereinafter called as 'the Act') before the Commissioner of Income Tax, Raipur (hereinafter called as 'CIT') on 28.02.2014. A report in this context was called for from the Assessing Officer about the genuineness of the Society and its activities. An opportunity was provided to the respondent Society by issuing the letter dated 18.07.2014 to produce the copies of audited accounts for last three years and also to produce original documents and proof of charitable activities of the respondent. Shri Pawan Agrawal and Shri Dipesh Sancheti attended from time to time and filed written submissions. On 6.8.2014 the respondent Society was asked to explain: (i) How vocational training can be considered as education within the meaning of Section 2(15) of the Act. (ii) How the activities can be considered charitable as fees is being charged and substantial amount is received from Sikkim Manipal University. (iii) How rent received by the society can be considered as charitable. The respondent has filed details from time to time. These details are basically regarding work done by the Society. How....

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....ent filed an appeal before the Income Tax Appellate Tribunal, Raipur Bench, Raipur (hereinafter called as 'ITAT') and learned ITAT allowed the appeal filed by the assessee / respondent vide order dated 15.01.2019 and set aside the order of learned CIT and directed for grant of approval to assessee / respondent under Section 80G of the Act. Hence, this appeal. 7. Learned counsel for the appellant submits that the order passed by the ITAT dated 15.01.2019 is bad in law and contrary to the facts and circumstances of the case and suffers from perversity. Learned ITAT failed to appreciate that the Society is engaged in providing vocational education for fee. The work done by the Society cannot be considered as education as it is very different from formal education envisaged in Section 2(15) of the Act. He further submits that learned ITAT failed to appreciate that developing the knowledge, skill and mind and character of the students by normal schooling is considered as education. The word 'education' has been used in Section 2(15) of the Act in the sense of systematic instruction, schooling or training, and not in the wide and extended sense according to which every acquisiti....

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.... the Supreme Court in the matter of Assistant Commissioner of Income Tax v. Surat City Gymkhana, (2008) 14 SCC 169 and the judgment of the Gujarat High Court in the matter of Ahmedabad Urban Development Authority v. Deputy Director of Income-Tax (Exemption), (2011) 335 ITR 575. 9. We have heard learned counsel appearing for the parties, perused the impugned order and other documents appended with appeal. 10. In Hiralal Bhagwati (supra), the Gujarat High Court has held as under:- "18. It is also required to be noted that once the registration under section 12A(a) of the Act is granted, the grant of benefit cannot be denied. The Income-tax Officer was not justified in refusing the benefits which would otherwise accrue under the registration. If there was no registration, as contemplated under section 12A(a) read with rule 17A, the Revenue would have been justified in making a submission that the benefit cannot be granted, but where the application for registration is submitted and the registration has been granted, the benefit cannot be denied on the ground that the scheme is not for the benefit of public at large. 25. Learned counsel submitted that as it is meant for a restr....

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....urt has held as under:- "11. Applying the ratio enunciated as aforestated to the facts of the present case, it is apparent that while framing Assessment Order on 30-12-2009 it was not open to the Assessing Officer to ignore Certificate of Registration dated 23-10-2003 granted under Section 12-AA of the Act by Director of Income Tax (Exemption), Ahmedabad. Therefore, on this limited count the Assessment Order appears to be without jurisdiction and the demand in pursuance thereto could not have been sought to be recovered. The respondent was therefore duty bound to stay recovery of the demand raised pursuant to Assessment Order dated 30-12-2009 for Assessment Year 2007-2008 till disposal of the First Appeal which is already pending before First Appellate Authority." 14. In the present case, learned ITAT while allowing the appeal and setting aside the order of learned CIT has held as under:- "6. We have heard the rival submissions and perused the material available on record. The issue in present grounds is with respect to rejection of application u/s. 80G of the Act. Before us, the Ld. A.R. has submitted that assessee has been granted registration u/s. 12AA of the Act and the r....