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Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR
Before: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 774/JP/2015
PER SHRI KUL BHARAT, J.M.
This appeal by the assessee is directed against the order of Ld. CIT (Exemptions) dated 24.08.2015 pertaining to A.Y. 2015-16. The assessee has raised the following grounds of appeal :-
On the facts and in the circumstances of the case, the ld. CIT (Exemptions) has grossly er4red in not granting registration u/s 12A(a) of the Income Tax Act, 1961 without properly appreciating the prime objectives of the appellant society being providing relief to the poor and education. Thus, the order of ld. CIT deserves to be held bad in law and the registration u/s 12A(a) deserves to be granted to appellant.
2 ITA No. 774/JP/2015 Sevva Foundation
1.1 That the ld. CIT has further erred in rejecting the application of appellant merely on the ground that one of the objectives of appellant society is to run coaching institutions, without appreciating the fact that this is an ancillary object and no activity has been undertaken by appellant toward this end so as to allege that appellant society’s activities are not charitable in nature. Thus, the order of ld. CIT deserves to be held bad in law.
1.2 That, the appellant society is yet to commence its activities which fact stands admitted by ld. CIT and therefore, the question as to whether the activities of appellant were charitable or not cannot be decided at this stage. Therefore, the order of ld. CIT rejecting the appellant’s application was completely premature and uncalled for and hence, deserves to be quashed.
Without prejudice to the Grounds of Appeal Nos. 01 to 1.2 and in the alternative :
1.3. That, the ld. CIT has further erred in ignoring the fact that the receipts of appellant during the period 2014-15 are much below Rs. 25 lacs and therefore, even if the activities of assessee ( which haven’t commenced yet) are treated as commercial in nature, then by virtue of second proviso to section 2(15) of the Act, the activities of appellant shall still be considered as for “charitable purpose” in as much as first proviso shall have no application. Therefore, the impugned order deserves to be quashed and registration as prayed for deserves to be allowed.
That the appellant craves the right to add, delete, amend or abandon any of the grounds of appeal either before or at the time of hearing of appeal.
Briefly stated the facts are that the assessee filed an application on
02.02.2015 in Form 10A seeking registration under section 12A(a) of the
Income Tax Act, 1961 (hereinafter referred to as the Act). The ld. CIT (E)
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after giving opportunity to the assessee, rejected the application on the
ground that one of the objects of the assessee society is to conduct Coaching
Classes for preparation of various competitive examinations and also on the
basis that the assessee had not carried out any other activity. Aggrieved by
this, the assessee has come in appeal before this Tribunal.
The ld. Counsel for the assessee has reiterated the submissions as
made in the written brief. The ld. Counsel submitted that clause (ff) which
was objected to by the ld. CIT (E) has been removed from the Objects of the
Society. He further submitted that at the time of seeking registration, the
issue of activities carried out by the assessee should not be the ground for
rejection. He submitted that the ld. CIT (A) has not doubted about the
activities of the assessee.
3.1. On the contrary, the ld. D/R supported the order of the ld. CIT (E).
3.2. We have heard rival contentions. After considering the submissions and
the case laws relied on by the ld. Counsel for the assessee in his written brief,
we deem it proper to restore the application seeking registration to the file of
ld. CIT (E) for decision afresh in view of the fact that the assessee has
amended its objects. Grounds raised in the appeal are allowed for statistical
purposes.
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In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 20/02/2017.
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vkns'kkuqlkj@ By order,
सहायक पंजीकार@Aेेज. त्महपेजतंत