SAI ANIRUDHA EDUCATION SOCIETY,RATNAGIRI vs. INCOME TAX OFFICER, KOLHAPUR

Ld.AR for the Assessee filed paper book containing 263 pages. Ld.AR submitted that all these details were filed before the ld.CIT(E), however, without verifying these documents, ld.CIT(E) has rejected the application for registration u/sec.12A of the Act, on non-existing grounds. Ld.CIT(E) rejected the assessee’s application stating that Assessee had claimed deduction u/sec.11 of the Act in earlier years without having registration u/sec.12A of the Act. Ld.AR submitted that Assessee is running following educational institutions : a. D J Samant English Medium School Pali b. D J Samant English Medium School Lanja. c. D J Samant English Medium School Jakadevi d. D J Samant Senior College of Arts, Commerce & Science Pali. e. D J Samant Private Industrial Training Institute, Pali. 3. Assessee had never claimed deduction u/sec.11 of the Act. Therefore, findings of ld.CIT(E) are incorrect. Ld.AR invited our attention to the Return of Income filed by assessee.

Ld.AR submitted that in addition to running educational institutions, assessee is also carrying out other charitable activities. Ld.AR invited our attention to the note on activities which is at pages 144 – 171 of the paper book.

Ld.DR for the Revenue relied on the order of ld.CIT(E).

We have heard both the parties and perused the records. In this case, assessee has made application in Form No.10AB under section 12A(1)(ac)(vi)-ITEM(B) of the Income Tax Act, 1961 on 30/03/2024. Ld.CIT(E) rejected the application. The relevant paragraph is reproduced as under : “5. The assessee was requested to show cause as to why the application should not be rejected and why the approval granted under section 12AB of the Income Tax Act, 1961 should not be cancelled. The assessee was also given opportunity of being heard vide the said notice. The assessee was specifically informed that in the event of failure to comply by the due date, the application shall be liable to be rejected and the approval shall also be liable to be cancelled. The compliance to the said notice was due on 02/09/2024. The notice was duly served on the assessee through e-portal and email.

Further, without prejudice to the above and as per financial statements and ITRs furnished by the assessee, it is seen that the trust has claimed deduction u/s 11. Therefore, said provisions of sec.12A(1)(ac)(vi)(B) of the Act are not applicable in the assessee’s case. As such, the undersigned is left with no alternative but to reject the application.”

Thus, ld.CIT(E) has rejected the assessee’s application on the ground that assessee had claimed deduction u/sec.11 of the Act. Ld.CIT(E) has not specified for which assessment year assessee had claimed deduction u/sec.11 of the Act.

1 Page Number 1 and 2 of the paper book is the reply filed by the assessee in response to the show cause notice. In the said reply, assessee has specifically submitted that assessee have not claimed exemption u/sec.11 of the Act, in the past. Assessee enclosed copies of the Return of Income for A.Y.2023-24, A.Y.2022-23 and A.Y.2021-22. 8. Similarly, assessee had filed following documents before the ld.CIT(E) which are part of the paper book :

We have perused copy of return of income for A.Y.2023-24 and noted that assessee had not claimed any exemption u/sec.11 of the Act for A.Y.2023-24. In the Return of Income, Assessee has specifically claimed exemption u/sec.10(23C)(iiiad) of the Act. The relevant pages scanned and reproduced as under :

Thus, on perusal of the Return of Income for A.Y.2023-24, it is observed that the findings recorded by ld.CIT(E) is incorrect. Similarly, we have perused the Return of Income for A.Y.2022-23

Thus, even for A.Y.2022-23, assessee has not claimed any deduction u/sec.11 of the Act as alleged by ld.CIT(E). Thus, the finding recorded by ld.CIT(E) is incorrect.

Ld.CIT(E) has rejected assessee’s application only for one reason i.e.Assessee allegedly claimed deduction u/sec.11 of the Act. We have already reproduced above that we have verified returns and observed that no deduction u/s.11 of the Act has been claimed. Therefore, the basis for rejection is erroneous.

On perusal of the paper book, it is observed that assessee is running various educational institutions which are as under : a. D J Samant English Medium School Pali b. D J Samant English Medium School Lanja. c. D J Samant English Medium School Jakadevi d. D J Samant Senior College of Arts, Commerce & Science Pali. e. D J Samant Private Industrial Training Institute, Pali.

1 Assessee has filed all the necessary details before ld.CIT(E). Assessee is a duly registered trust with Assistant Charity Commissioner, Ratnagiri under Maharashtra Public Trust Act. Copy of the certificate issued by Assistant Charity Commissioner is at page no.60 of the paper book. We have also observed that in addition to running various educational institutions, Assessee had organised other activities like Lecture by Director of MITCON on the subject of Self-Employment which was reported in the local newspaper(page 158 of the paper book). Similarly, other charitable

Nowhere in the order ld.CIT(E) has doubted the genuineness of activities.

In these facts and circumstances of the case, we are convinced that assessee is a charitable trust carrying out charitable activities as defined in Section 2(15) of the Act. Therefore, Assessee is eligible for registration u/sec.12A(1)(ac) of the Act. Accordingly, we direct ld.CIT(E) to grant registration u/sec.12A(1)(ac) of the Act.

In the result, appeal of the assessee is allowed.

गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER,