PROGRESSIVE EDUCATION SOCIETY,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX,

आदेश आदेश PER D. KARUNAKARA RAO, AM :

This appeal is filed by the assessee against the order of CIT(A)-10, Pune, dated 27-01-2016 involving Assessment Year 2010-11. 2. Grounds raised by the assessee read as under :

“1. The learned CIT(A)-10, Pune erred in law and on facts in upholding the taxable income worked out by the learned AO at Rs. 14,18,67,147/- and corresponding tax liability amounting to Rs. 6,29,82,833/- on the appellant. The learned CIT(A)-10 and the learned AO ought to have appreciated that the appellant is a bonafide Charitable Trust solely engaged in education.

own case for the A.Yrs.2008-09 and 2009-10. 4. registered under the Bombay Public Trust Act, 1950 and Society

Registration Act, 1860. Assessee is engaged mainly in the Educational

and Training Activity. Assessee offers education from the Nursery to the Post Graduate Education in the field of Arts, Commerce, Science,

Engineering and Health Sciences through more than 56 institutions in the State of Maharashtra. Assessee filed the return of income for the impugned assessment year declaring total Nil income. During the course

of assessment proceedings, assessee was asked to produce the certificate

of Registration u/s.12A of the Act. At the end of the assessment

proceedings, the AO held that the activities of the trust are not charitable

in nature and against the objects of the trust. Eventually, the AO denied

the exemption claimed u/s.11 of the I.T. Act in the absence of registration u/s.12A of the Act.

the Tribunal with the grounds mentioned above.

read with section 80G of the Act since many decades. While there is proper registration u/s.12A of the Act, w.e.f. 01-04-2013, the assessee

failed to furnish the said certificate of registration for the years prior to the said date. Referring to the proceedings before the various authorities

for the A.Yrs. 2008-09 and 2009-10, Ld. Counsel submitted that the matter relating to registration u/s.12A of the Act in the assessee’s own

case has reached the Tribunal. The Tribunal vide ITA Nos. 1166 and 1167/PN/2014 decided on 15-04-2016 for the A.Yrs. 2008-09 and 2009-

10 held that the assessee is entitled to the benefits of exemption u/s.11

of the Act and the registration was considered granted despite non-

submission of the direct evidence in support of Registration u/s.12A of the Act. Tribunal considered the fact of grant of exemption over the years while granting relief to the assessee. Relying on the said finding of the Tribunal, the CIT(A) granted registration in the subsequent

assessment year 2011-12 vide his order dated 16-12-2017. In the process, the CIT(A) relied on the Tribunal’s order dated 15-04-2016, copy

of which is placed at Page no.6 of the paper book.

However, Ld. Counsel for the assessee that, for the reason that the said order of the Tribunal (supra) is not available at the time of passing

of the orders by the AO/CIT(A) for the A.Y. 2010-11, the year under consideration, the CIT(A) took a different view and confirmed the disallowance of exemption u/s.11 of the Act.

case for the A.Yrs. 2008-09 and 2009-10 (supra). We find it is a decided

issue that the assessee is entitled to relief so far as claim u/s.12A r.w.s.

11 of the Act is concerned. On peculiar facts of this case, the failure to furnish the copy of Registration is not sacrosanct. Contents of Para

No.38 of the order of Tribunal evidences the same and the same is extracted here as under :

“38. Since in the instant case nothing has been brought on record that the certificate u/s.80G was not granted to the assessee in the past and since registration u/s.12A is one of the prerequisite for granting of certificate u/s.80G and the 80G certificates produced by the assessee for the past several years are not found to be false or untrue, therefore, it has to be held under the facts of the instant case that there is registration u/s.12A of the I.T. Act. The first issue on which the AO has denied the benefit of section 11 for non submission of 12A registration certificate is accordingly rejected.

“41. Since in the instant case also nothing has been brought on record that the donations received from various persons has not been entered the books of the assessee or has been utilized by any of the trustees or their relatives or has been utilized for purposes other than education and since neither any of the donor nor the AO has lodged any complaint before the Government authorities for violation of the Act, therefore, the revenue authorities in our opinion are not justified in denying the exemption u/s.11 of the I.T. Act to the assessee on the ground of violation of provisions of section 11(1)(d) of the I.T. Act. We accordingly set aside the order of the CIT(A) and direct the AO to allow the claim of exemption u/s.11 of the I.T. Act. Grounds raised by the assessee are accordingly allowed.”

Considering the settled nature of the issue, we are of the opinion that the assessee succeeds on the grounds raised before us. Accordingly, the issue raised in the grounds is allowed.

Order pronounced on 28th September, 2018. (VIKAS AWASTHY) (D. KARUNAKARA RAO) "याियक "याियक सद"य "याियक "याियक सद"य सद"य /JUDICIAL MEMBER लेखा सद"य लेखा लेखा सद"य लेखा सद"य सद"य / ACCOUNTANT MEMBER सद"य

पुणे Pune; "दनांक Dated : 28th September , 2018 सतीश आदेश क" क" "ितिलिप "ितिलिप अ"ेिषत अ"ेिषत/Copy of the Order forwarded to : आदेश क" क" "ितिलिप "ितिलिप अ"ेिषत अ"ेिषत आदेश आदेश अपीलाथ" / The Appellant

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Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune