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Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR
Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 51/JP/2019
fu/kZkfjrh dh vksj ls@ Assessee by : Shri P.C. Parwal (C.A.) jktLo dh vksj ls@ Revenue by : Shri Varinder Mehta (CIT) lquokbZ dh rkjh[k@ Date of Hearing : 14/05/2019 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 16/05/2019 vkns'k@ ORDER PER: VIJAY PAL RAO, J.M. This appeal by the assessee is directed against the order dated 28.11.2018 of the ld. CIT(E), Jaipur passed U/s 12AA(1)(b)(ii) of the Income Tax Act, 1961. The assessee has raised following grounds of appeal:-
1. The ld. CIT(E) has erred on facts and in law in rejecting the application of assesee for grant of registration u/s 12AA of Income Tax Act, 1961 by incorrectly holding that assessee has failed to Neeraj Shiksha Prashikshan Samit vs. CIT(E) produce details and documents in support of its claim for registration. 2. The appellant craves to alter, amend and modify any ground of appeal. 3. Necessary cost be awarded to the assessee.
2. The assessee trust was constituted on 05.04.1997 with main object of imparting education. The assessee filed an application for registration U/s 12AA of the IT Act in Form No. 10A on 31.05.2018. The ld. CIT(E) vide impugned order has rejected the application seeking registration 12AA of the Act mainly on the ground that the assessee has not filed financial accounts as well as original documents for verification.
Before us, the ld. AR of the assessee has submitted that the only reason given by the ld. CIT(E) for refusing the registration U/s 12AA is that the assessee has not submitted the original documents regarding establishment of the trust, financial statements and the details regarding the activities carried out by it. This is incorrect in as much as along the application in Form 10A itself, the assessee has uploaded the copy of the trust deed, annual accounts and note on the activities of the trust. Further, vide letter dated 15.11.2018 the assessee has submitted the following documents:- 2 Neeraj Shiksha Prashikshan Samit vs. CIT(E)
i) Certified copy of Annual accounts of last three years. ii) Certified copy of trust deed with the original for verification. iii) Copy of return of income along with computation for last three years. iv) Copy of letter granting affiliation to CBSE.
The ld. AR has submitted that the ld. CIT(E) has acknowledged this letter in his order but without any basis wrongly alleged that only part reply is submitted wherein financial accounts and original documents were not provided for verification. Even if for the sake of argument it is accepted, then also the ld. CIT(A) should have brought this fact to the notice of the assessee when he has passed the order on 28.11.2018.
From the annual accounts itself, it can be noted that the sole activity of the assessee is imparting education and it is affiliated with CBSE Board.
The assessee has been regularly filing the return of income. Considering the same, when assessee has provided the information called by the ld. CIT(E), the registration refused by him is unjustified.
On the other hand, ld. DR has submitted that the ld. CIT(E) has specifically pointed out that the assessee has not complied with the notice issued requiring the assessee to submit documents/explanation along with original trust deed as well as the financial accounts of the Neeraj Shiksha Prashikshan Samit vs. CIT(E)
assessee. Thus, for want of necessary details and documents the ld. CIT(E) was not able to verify the genuineness of the activities of the assessee trust/institution. He has relied upon the impugned order of the ld. CIT(E).
We have considered the rival submissions as well as the relevant material on record. We note that the application for registration U/s 12AA of the Act in Form no. 10A was filed by the assessee through e- filing and the acknowledgement of the same is not in dispute. As per the attachments uploaded with the application the assessee attached trust deed, trust accounts, trust creation evidence and activities note etc. in the PDF form. Further, the assessee vide letter dated 15.11.2018 also produced certified copy of annual account for last three years, certified copy of trust deed with original for verification, copy of return of income along with computation for last three years and copy of letter granting affiliation to CBSE. All these documents are also placed in the paper book filed by the assessee. We find that as per the objects clause of the assessee trust the following objects are mentioned in the said clause:- Neeraj Shiksha Prashikshan Samit vs. CIT(E)
From these objects of the assessee trust it is clear that the primary and main object of the assessee is to impart education through education institution. The assessee is running LBS convent school which is also affiliated with CBSE vide letter dated 04/12.05.2016. Thus, the objects of the assessee trust is charitable in nature and the ld. CIT(E) has also not doubted charitable nature of objects of the assessee trust. The only reasons given by the ld. CIT(E) for rejecting the application is not submitting the original documents as well as the financial accounts. It is Neeraj Shiksha Prashikshan Samit vs. CIT(E) pertinent to note that the ld. CIT(E) has mentioned the reply of the assessee dated 15.11.2018 and we find that the said letter was filed along with certified copy of registration trust deed, annual accounts for 3 years and copy of letter granting affiliation to CBSE. Once, these documents were produced by the assessee then the observation of the ld. CIT(E) that the assessee has not produced the financial accounts and original documents for verification is contrary to the record. Since, the ld. CIT(E) has not disputed charitable nature of the objects of the assessee trust, therefore, to that extent no further verification is required. Even otherwise, we find that the objects of the assessee-trust are charitable in nature being imparting education. As regards the genuineness of the activities of the assessee trust once the assessee has produced all the relevant documents the same ought to have been examined by the ld. CIT(E) to satisfy himself about the genuineness of the activity. Since, the documents were already produced by the assessee therefore, we direct the ld. CIT(E) to verify the genuineness of the activity of the assessee from the documents produced by the assessee and then passed a fresh order on the basis of the verification of the documents for genuineness of the activity. Since, the objects of the assessee trust are not in dispute being charitable in nature Neeraj Shiksha Prashikshan Samit vs. CIT(E) therefore, if the ld. CIT(E) is satisfied about the genuineness of the activity then registration U/s 12AA of the I.T. Act shall granted to the assessee. In the result, the appeal of the assessee is partly allowed. Order pronounced in the open court on 16/05/2019.