M/S ADHARSHILA SHIKSHAN SANGH,RAIPUR (CG) vs. C.I.T-, RAIPUR (CG)

The relevant facts as culled out from the material on record are as under:-

All the grounds being interconnected are considered together.

Before us, Ld. A.R. reiterated the submissions made before lower authorities and further submitted that the assessee has been granted registration u/s. 12AA by the Commissioner of Income Tax, Raipur vide order dated 10-04-2008 and the aforesaid registration has not been cancelled till date. He pointed out the copy of aforesaid order which is placed at page 10 of the paper book. He further submitted that the Commissioner of Income Tax’s observation about the assessee running its institute on commercial lines and providing commercial education for a fee which cannot be considered as education it is not a formal education, is contrary to the facts as the education imparted by the assessee are affiliated to the various universities, the details on which are placed at pages 3 to 4 of the paper book. He therefore, submitted that when the registration u/s. 12A to the assessee is still being continued, the Commissioner of Income Tax could not have rejected the application u/s. 80G and for this proposition he relied on the decision of Agra Bench of the Tribunal in the case of Dr. Gyanendra Goel Foundation Vs. Commissioner of Income Tax reported in (2018) 52 CCH 284 (Agra), the copy of which is placed in the paper book. He also relied on the decision of Hon’ble Gujarat

The Ld. D.R. on the other hand supported the order of Commissioner of Income and submitted that the Commissioner of Income Tax has found the activities to the assessee to be not charitable. He therefore, strongly supported the order of Commissioner of Income Tax.

We have heard the rival submissions and perused the material available on record. The issue in present grounds is with respect to rejection of application u/s. 80G of the Act. Before us, the Ld. A.R. has submitted that assessee has been granted registration u/s. 12AA of the Act and the registration continues till date and the aforesaid registration has not been cancelled by the Commissioner of Income Tax. The aforesaid contention of the Ld. A.R. has not been controverted by the Revenue. We find that the Agra Bench of the Tribunal in the case of Dr. Gyanendra Goel Foundation Vs. Commissioner of Income Tax (supra) after relying on the decision of Hon’ble Gujarat High Court in the case of Hiralal Bhagwati Vs. Commissioner of Income Tax (supra) in similar circumstance has held that when the Commissioner of Income Tax has granted registration u/s. 12AA after examining genuineness of activities of Trust, and the registration granted has not been revoked or cancelled then it is not proper for Commissioner of Income Tax to reject application of Trust for benefit of exemption u/s. 80G by holding that the activities of the Trust were not genuine.

Before us, the Revenue has not pointed out any contrary binding decision nor has placed any material on record to demonstrate that the aforesaid decision of Agra Bench of Tribunal has been set aside by the higher judicial forum. We are therefore, following the decision of Agra Bench of Tribunal and for similar reasons hold that in the present case the Commissioner of Income Tax was not justified in rejecting the application of assessee. We therefore set aside the order of LD. CIT and direct the granting of approval to assessee u/s. 80G of the Act. Thus the grounds of the assessee are allowed.

In the result, the appeal of the assessee is allowed.