THE INDIAN EDUCATIONAL FOUNDATION,RANCHI vs. CIT(EXEMPTION), PATNA

Case file indicates that the CIT(Exemption) has declined assessee’s on plea of sec. 12AA registration vide following detailed discussion:- The Indian Educational Foundation Vs. CIT(Ex), Patna Page 2 “The applicant is a trust. An application in Form No.10A of the Income-tax Rules, 1962 for grant of approval u/s. 12AA of the Act was field on 07.12.2016 in the office of the Commissioner of Income-tax (Exemptions), Patna. 2. The case was fixed for hearing on 22.03.2017 in this office to produce certain details which was communicated to the applicant vide this office letter F.No. CIT/Pat/Tech/12AA/Regd./04(261)/206-117/6854,dated 02.03.207 and the Secretary of the trust was requested to appear on the said date & time either in person or through an authorized representative alongwith the details/papers/documents etc. sought for. In response to that Sri M.K. Choudhary, Advocate & Authorized Representative of the applicant trust appeared on 06.04.2017 and later on Shri Pramod Kumar, Trustee of the applicant trusts, and Shri Avinash Kumar Anjan, Advocate & Authorized Representative, attended on 26.04.2017. Written submissions were also filed. Case discussed with them.

From the details filed it emanates that the registration granted u/s.12A of the Act was cancelled on 17.01.2013 by the CIT, Ranchi, u/s 12A(3) on finding that the cash, belonging to the trust, were deposited in the undisclosed bank account of the trustee on different dates. The Hon’ble ITAT had confirmed the order of the CIT, Ranchi and the applicant has taken the issue before the Hon’ble Jharkhand High Court. Since, the issue is sub-judiced, fresh application of the applicant cannot be adjudicated as the issue involved for cancellation of registration of the Act still persists 4. In view of the above, the application for grant of registration u/s.12AA of the Act is hereby rejected.” 3. It further emerges that the CIT(Exemption)’s earlier order rejecting the assessee’s identical registration stands upheld upto the tribunal and its tax appeal is stated admittedly pending before the hon’ble jurisdictional high court. Learned counsel’s only case during the course of hearing is that the irregularities of cash deposit etc. which existed in earlier round of proceedings are no more involved in the instant second round since the assessee’s application to this effect duly confirms all procedural requirements. Mr. Singh’s case on the other hand is that we ought to follow judicial consistency since the assessee has failed on identical issue in the earlier round.

We have given our thoughtful consideration to the foregoing rival pleadings. Suffice to say, it is clear although the assessee has lost in the earlier round of registration proceedings, the fact also remains that the foregoing distinction of no cash deposits in the instant second round is stated to be no more involved so as to violate the registration norms. We therefore deem it appropriate to restore the instant lis back to the CIT (Exemption) for The Indian Educational Foundation Vs. CIT(Ex), Patna Page 3 afresh adjudication as per law after taking into consideration all the relevant facts and circumstances, he may also await hon’ble decision high court’s final judgment as per law.