SEWA FOUNDATION,JAIPUR vs. CIT(EXEMPTIONS), JAIPUR

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 :-

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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.

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.

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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Order pronounced in the open court on 20/02/2017.

Sd/- Sd/- ¼foØe flag ;kno½ ¼dqy Hkkjr ½ (Vikram Singh Yadav) (Kul Bharat) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 20/02/2017. आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- M/s. Sevva Foundation, Jaipur. 2. izR;FkhZ@ The Respondent- The CIT(Exemptions), Jaipur. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 6. xkMZ QkbZy@ Guard File {ITA No. 774/JP/2015}

vkns'kkuqlkj@ By order,

सहायक पंजीकार@Aेेज. त्महपेजतंत