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Income Tax Appellate Tribunal, DELHI
Before: SH. N. K. BILLAIYA & SH. ANUBHAV SHARMA
The assessee has come in appeal vide challenging order dated 16.10.2019 passed by Ld. CIT(E), Chandigarh dismissing application for Registration u/s 12A of the Income Tax Act, 1961 ( hereinafter referred as the Act ).
ITA No. 405, 406./Del/2020 2
Further vide 05.11.2019 of CIT(E), Chandigarh whereby application for approval u/s 80G of the Act was declined.
Head and perused the record.
As the case was called for hearing, non- appeared for the assessee while notices stand issued for today. The record shows earlier on 30.06.2022 non- appeared for the assessee and on 13.10.2022 non-appeared but application for adjournment was received. It appears that assessee is not interested to prosecute the appeal, therefore, arguments of ld DR were heard and who supported the findings of Ld. CIT(E) .
After perusal of the matter on record, it can be observed that while passing impugned order dated 16.10.2019 dismissing the application u/s 12A, the Ld. CIT(E) has mentioned that earlier by order dated 12.04.2019 application u/s 12A of the Act was dismissed. The grounds of dismissal of the application vide order dated 12.04.2019 have been reproduced in the present impugned order at para no. 2. The Ld. CIT(E) has taken notice of the application for review and made following relevant observations in para 5 as below :-
“5. The application of the applicant for registration was rejected earlier on the grounds mentioned supra. Instead of filing appeal against the said order, the applicant has reapplied for registration. The only different fact now is that the commercial objects have been deleted from the MOA. The other facts and circumstances remain the same. No new facts have been brought out or evidences have been adduced to relook or re-examine the matter. Considering the totality of circumstances it is not possible to corroborate the charitable activities of the applicant society with material available on record. In the instant case, in light of the above. I have no option but to deny the registration to the applicant u/s 12AA of the Income Tax Act, 1961.”
ITA No. 405, 406./Del/2020 3
The bench is of considered opinion that Ld. CIT(E) has duly applied its mind in taking into consideration the circumstances coming up from the information submitted by the assessee that the assessee was not engaged in charitable activities in the past. The assessee was unable to produce relevant evidence to establish the nature of courses for which fees was being charged so they would fall in the category of charitable activities of imparting “education”. More so, when the tuition fees is shown to be accepted in cash and no bank account was maintained for over three years. Thus, there is no error of the findings of ld. CIT(E). The grounds raised in ITA no. 405/Del./2020 have no substance.
As the grounds in appeal of assessee challenging rejection of application u/s 12A have not been sustained the present appeal no. 406/Del./2020 has no substratum for the purpose of Section 80G(5)(v) of the Act.
Both appeals of assessee are dismissed.
Order pronounced in the open court on 11th January, 2023.