KANWAL EDUCATION SOCIETY,KAITHAL vs. CIT(E), CHANDIGARH

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ITA 5511/DEL/2018Status: DisposedITAT Delhi11 April 20223 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the registration cannot be refused solely on the grounds of delay. The CIT(Exemptions) failed to examine the objects of the society. Therefore, the matter was remanded back for a fresh decision on merits.

What were the facts?

The assessee, Kanwal Education Society, applied for registration under Section 12A. The CIT(Exemptions) refused the registration, citing a delay of 22 years in application and the assessee having filed returns without claiming exemptions.

What were the issues?

Whether the delay in applying for Section 12A registration is a valid ground for rejection, and whether the CIT(Exemptions) properly examined the assessee's charitable objects.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘C’, NEW DELHI

Before: SHRI AAKASH DEEP JAIN & DR. BRR KUMAR

For Respondent: Shri Manvendra Goyal, CIT DR
Hearing: 11.04.2022Pronounced: 11.04.2022

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by the assessee against the order of the ld. CIT(Exemptions), Chandigarh dated 29.06.2018.

2.

Following grounds have been raised by the assessee: “1. That the order passed by the Ld. Commissioner of Income Tax (Exemption) is not justifiable as the objective of the society is only CHARITABLE (Educational) as required u/s 12A.

2. That the Ld. Commissioner of Income Tax (Exemption) has cancelled the application for registration u/s 12A on the ground that applicant has filed return without claiming exemption u/s 10(23C)(iiiad) and paid applicable tax for the last two assessment years. It does 2 Kanwal Education Society not have any effect on the objective/activity or the nature of activity run by the society.

3. That the Ld. Commissioner of Income Tax (Exemption) has claimed that the sudden seeking of registration after a gap of 22 years is attempt to manipulate the provisions which is also unjustifiable in every respect and on this fact Ld. Commissioner of Income Tax(Exemption) cannot reject the application of 12A.

4. The applicant runs an educational institute at village PAI distt. Kaithal and only activity of the society is providing the education but Ld. Commissioner of Income Tax (Exemption), not accept the fact of case and reject the application which is not justified and against the law. Please pass necessary order and obliged.”

3.

On going through the record, we find that the ld. CIT(E) has refused the registration holding that the assessee has applied registration after 22 years of its formation and no rationale has been given by the assessee. The registration cannot be refused on such grounds. The requirement of registration have to be examined based on the objects of the trust which has not been examined by the ld. CIT(E) and hence we deem it fit to remand the matter back to the file of the ld. CIT(E) to pass speaking order on merits of the case. 3 Kanwal Education Society 4. In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 11/04/2022.

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