BHOPAT RAM BIRLA SHIKSHAN SANSTHAN,JAIPUR vs. ACIT(EXEMPTION), JAIPUR

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh Hkkxpan] ys[kk lnL; ,oa Jh dqy Hkkjr] U;kf;d lnL; ds le{k BEFORE: SHRI BHAGCHAND, AM & SHRI KUL BHARAT, JM vk;dj vihy la-@ITA No. 463/JP/2016 fu/kZkj.k o"kZ@Assessment Year : 2012-13 cuke M/s Bhopat Ram Birla Asstt. Commissioner of Vs. Shikshan Sansthan, income Tax (Exemption), 47/12 Varun Path Jaipur. Mansarovar, Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAATB 5146 Q vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri B.P. Mundra (CA) jktLo dh vksj ls@ Revenue by : Shri R.A. Verma (Addl.CIT) lquokbZ dh rkjh[k@ Date of Hearing : 28/04/2017 mn?kks"k.kk dh rkjh[k@ Date of Pronouncement : 15/05/2017 vkns'k@ ORDER

PER: BHAGCHAND, A.M.

This is an appeal filed by the assessee emanates from the order

dated 11/01/2016 passed by the ld CIT(A)-3, Jaipur for the A.Y. 2012-13,

wherein the assessee has raised following grounds of appeal:

“1. Selection of case for scrutiny is bad in law and facts. 2. Treating that assessee is having no registration U/s 12A is bad in law and facts. 3. Not allowing the benefit of provisions of Section 11 and rejection of claim of exemption of Rs. 35,75,410/- U/s 11 and

ITA 463/JP/2016_ 2 M/s Bhopat Ram Birla Shikshan Sansthan Vs ACIT

treating income earned from providing education to bought to tax as APO is bad in law and facts.

is regarding registration U/s 12A of the Income Tax Act, 1961 (in short the

Act). Before us, it was submitted that the assessee sansthan was created

on 16/01/1999 and it was registered with Registrar of Societies, Jaipur vide

certificate No. 508/1998-99 on 25/2/2015. The assessee submitted an

application for registration U/s 12A of the Act before the Commissioner of

Income Tax, Jodhpur on 03/3/2000 alongwith Form No. 10A and certified

copy of the trust deeds. This entry is evident from dak register, which is

placed at page No. 7 of the paper book and the entry is at Sl. No. 159 and

of the paper book. The ITO, Ward 2, Jodhpur vide its letter dated

22/6/2000 asked the information for registration No. 12A of the Act and the

assessee complied the requirement of the letter vide its letter date

10/7/2000. Copy placed at page No. 8 of the paper book. The assessee

also submitted an affidavit in this regard by stating the factual position

before the Assessing Officer. The Assessing Officer while finalizing the

assessment U/s 143(3) for the A.Y. 2010-11, enquired about certificate of

ITA 463/JP/2016_ 3 M/s Bhopat Ram Birla Shikshan Sansthan Vs ACIT

registration No. 12A of the Act and the assessee submitted before him that

the assessee has applied for certificate on 03/3/2000 before the CIT,

Jodhpur. All the necessary evidences were submitted and after verification

and satisfaction, the Assessing Officer gave a finding that the assessee

Trust is registered U/s 12AA of the Act. He further submitted that, at the

relevant time of provisions of Section 12AA (2) of the Act provides that

every order granting or refusing registration under clause (b) of subsection

(1) shall be passed before expiry of six months from the end of the months

in which the application was received under clause (a). He also submitted

that as per circular No. 762 dated 18/2/1998, it is clear that where the

Commissioner does not pass order, granting or refusing registration of

Trust within the period laid down in Section 12AA(2) i.e. six months from

the end of the month in which the application for registration U/s 12A of

the Act is filed then registration would be deemed to have been granted to

the Trust or institution automatically on expiry of period specified in Section

12AA(2) of the Act. After enquiring all the facts and circumstances, the

Assessing Officer while passing order U/s 143(3) of the Act for the A.Y.

2010-11 accepted that the assessee society is registered U/s 12AA of the

Act. He also placed reliance with the following decisions:

(i) UCO Bank Vs. CIT (1999) 23 ITR 889 (SC)

ITA 463/JP/2016_ 4 M/s Bhopat Ram Birla Shikshan Sansthan Vs ACIT

(ii) Catholic Syrian Bank Ltd. Vs. CIT (2012) 343 270.

(iii) 82 ITR 913 (SC)

(iv) ACIT Vs Rajoo Engineers Ltd. (2006) 248 ITR (A.T.) 0118.

He also relied on the decision of the Hon'ble Supreme Court in the case of

CIT Vs Society for the Promn of Edn (2016) 95 CCH 0049 ISCC, wherein

the Hon'ble Supreme Court has held as under:-

“3. The short issue is with regard to the deemed registration of an application under Section 12AA of the Income Tax Act. The High Court has taken the view that once an application is made under the said provision and in case the same is not responded to within six months, it would be taken that the application is registered under the provision.

authorities below.

The assessee was registered with the society of Registration, Jaipur on

16/1/1999 vide certificate No. 508/98-99. The assessee applied for

registration U/s 12A of the Act on 03/3/2000 alongiwth Form No. 10A and

ITA 463/JP/2016_ 5 M/s Bhopat Ram Birla Shikshan Sansthan Vs ACIT

certified copy of Trust Deed. This fact is evident from the inward register

maintained in the office of ITO. The copy of the same is placed at page No.

7 of the paper book. The relevant entries were at sl. No. 159 and 160. The

assessee got a letter dated 22/6/2000 from the ITO, Ward-2, Jodhpur, in

this regard. The assessee replied to the same on 10/7/2000, which is

evident from page No. 8 of the paper book. Thus, the assessee’s claim that

he has applied for registration U/s 12AA of the Act alongwith necessary

documents is well established. The assessee had also complied with the

queries raised by the authorities. Therefore, the ld. CIT has failed in making

any order either registering the assessee Trust under 12A or refusing the

same within six months. Therefore, the assessee’s case is clearly covered

by the decision of the Hon'ble Supreme Court in the case of CIT Vs Society

for the Promn of Edn. (supra). While making order U/s 143(3) of the Act,

the Assessing Officer has accepted the status of the assessee as registered

U/s 12A. The Assessing Officer records that the assessee engaged in the

charitable activities for educational purpose at Jodhpur, Pali, Marwar and

Barmer. The Assessing Officer also held that the income of assessee is

exempted U/s 11 of the Act. Considering all these facts and circumstances,

we hold that the assessee society shall be entitled for all the benefits

available for assessee registered U/s 12A of the Act. The assessee shall be

ITA 463/JP/2016_ 6 M/s Bhopat Ram Birla Shikshan Sansthan Vs ACIT entitled for the benefit of Section 11 of the Act. Therefore, all the grounds

of the appeal of the assessee are allowed.

Order pronounced in the open court on 15/5/2017. Sd/- Sd/- ¼dqy Hkkjr½ ¼Hkkxpan½ (Kul Bharat) (BHAGCHAND) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 15th May, 2017 *Ranjan आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू vihykFkhZ@The Appellant- M/s Bhopat Ram Birla Shikshan Sansthan, 1. Jaipur. izR;FkhZ@ The Respondent- The ACIT (Exemption), Jaipur. 2. vk;dj vk;qDr@ CIT 3. vk;dj vk;qDr¼vihy½@The CIT(A) 4. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 5. xkMZ QkbZy@ Guard File (ITA No. 463/JP/2016) 6. vkns'kkuqlkj@ By order,

सहायक पंजीकार@Aेेज. त्महपेजतंत