TaxTMI 
TaxTMI 
2025 (10) TMI 1376
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....see. Assessee filed details. Ld. CIT(E) after considering the submission of the Assessee held that since Assessee has not obtained prior permission of Charity Commissioner u/s. 36A of the Maharashtra Public Trust Act, before taking loans from the Trustees, hence, Assessee is not eligible for registration u/s.12A r.w.s. 12AB of the Act. Accordingly, ld. CIT(E) rejected the application of the Assessee. Aggrieved by the order of the ld. CIT(E), Assessee filed appeal before this Tribunal. 3. Ld.AR submitted that Assessee Trust is running School, two junior colleges and a Senior College. All the colleges are duly registered with the Savitribai Phule Pune University and Government of Maharashtra. Ld.AR invited our attention to page no. 21 - 24 of the paper book which are the approvals issued by Savitribai Phule Pune University dated 03.07.2019 for Arham College of Arts and Commerce. Similarly, the Board of Secondary Education, Government of Maharashtra has approved the college on 15.06.2023. He submitted that Arham Law College was approved on 07.10.2022 by Savtribai Phule Pune University(page 31 of the paper book). 3.1 The Ld.AR drew the attention of the Bench to the following note....
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....f Baramati Vipassana Samiti vide ITA Ns. 2642 & 2643/PUN/2024 order dated 03.04.2025 and Nagpur Bench of the Tribunal in the case of Shri Vyankanath Maharaj Vs. ITO vide ITA No. 398/NAG/2024 order dated 21.03.2025. 4. Ld. DR for the Revenue on the other hand relied on the order of ld. CIT(Exemption). 5. We have heard both the parties and perused the record. Assessee has filed copy of e-proceeding acknowledgment at page no. 67, 68, 69 and 70 of the paper book, which gives list of documents filed by Assessee before the ld. CIT(E). 5.1 On perusal of the paper book filed by the Assessee, it is observed that Assessee is running following educational institutes : ⮚ Arham School and Junior College ⮚ Arham College of Arts and Commerce ⮚ Arham International Institute of Information Security ⮚ Arham Law College 5.2 All the above educational institutes are duly approved by the Competent Authority. Copies of the approval have also been filed by the Assessee in the paper book. These facts have not been challenged by ld. CIT(E) or ld. DR for the Revenue. 5.3 Thus, it is an admitted fact that Assessee Trust is running ....
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.... the Nagpur Bench of the Tribunal in the case of Shri Vyankanath Maharaj Vs. ITO in ITA No.398/NAG/2024 has held as under : "12. We have given our thoughtful submissions to the facts and have dispassionately heard all the arguments. The procedural breach is venial and not material for the purpose of achieving its objects. Moreover, the loan has not been taken by way of encumbrance of assets from any particular deficiency. The learned CIT(E) has been given onerous responsibility to grant registration under section 12AB of the Act and registration and cancellation can be proceeded with only after affording a reasonable opportunity of being heard. The reply of the Trust that loan has been subsequently repaid has been glossed over and a mere procedural irregularity, which is curable defect has been amplified to deny registration. Moreover, once provisional registration has been granted under section 12AA, under section 12AB(4) of the Act, the learned CIT(E) is perfectly empowered to cancel such registration, if specified violation has taken place. Clause (f) of Explanation clearly lays down the requirement of order; direction or decree, holding such non-compliance has remained....
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....rties the same will be solely applied / utilized in furtherance of trust objects. The beneficiaries are public at large and not any specific community/individuals. 8.1 Thus, we are of the opinion that objects and activities of the trust are charitable in nature as defined in Section 2(15) of the Act. As far as the issue of obtaining a meagre loan of Rs.1,15,800/- is concerned, it is observed that assessee had submitted PAN and Aadhar of the Lenders. The ld. CIT(E) has not doubted the genuineness of the loan. During the proceedings, a letter has been submitted which states that assessee has applied for post-facto permission from Charity Commissioner with reference to the said loan. Thus, as stated by ld. CIT(E) in his order, the assessee has applied for post-facto permission. It is observed that on identical facts, ITAT Nagpur in the case of Prerana Samajik Sanskrutik Bahuddeshiya Shikshan Sanstha vs CIT(E) in ITA No. 376/NAG/2023 has allowed the assessee's appeal and directed ld. CIT(E) to grant registration under section 12A of the Act. In these facts and circumstances of the case, we are of the opinion that Assessee is eligible for registration under section 12A(1)(ac) o....