INSTITUTE OF ENGINEERING & MANAGEMENT TRUST, DELHI,KOLKATA vs. CIT (EXEMPTION), KOLKATA, KOLKATA

After hearing both the parties, we find that the CIT(Exemption) rejected the application for granting of registration u/s. 12AA of the Act on the ground that the assesse is yet to start its activity by placing reliance on the decision of Hon’ble High Court of Kerala in case of Self Employers Service Society Vs. CIT reported in 247 ITR 018(2001). The ld. AR submitted that the facts of the Hon’ble High Court of Kerala in the case of supra are different from the facts of the present case. The assesse came into existence as a trust on 06-06- 2007 vide Deed of Trust. The assesse is the sponsoring body of University of Engineering & Management, Jaipur, which requested the concerned authority of Rajasthan ( Pr. Secretary of Higher Education, 1 Institute of Engineering & Management Trust, Delhi Govt. of Rajasthan) to replace its name in the name of assesse. Thus, the assesse filed application in Form 10A for granting registration as charitable institution u/s. 12AA and Form 10G for approval along with detailed evidences i.e certified copy of trust deed, list of trustees, office accommodation and bank account etc. The CIT-E did not raise any objection in respect of information furnished by the assesse. But, however, rejected the plea of assesse only on the ground that it yet to start its activities. The ld. DR did not controvert the same and relied on the impugned order of the CIT-E. We find that the assesse has taken a plea of existence of University of Engineering & Management, Jaipur and applied for registration u/s. 12AA of the Act. On perusal of record, it is observed that the assesse filed before us the details of trust deed, certified copy of supplemental trust deed along with list of trustees, their identity proof, bank details by way of paper book at pages 6 to 53. The ld. AR pointed out that the CIT-E did not discuss in respect of said details in his order. Before us the ld. AR by way of paper book pages 54 to 87 in support of assessee’s submissions relied on various case laws and argued that the Hon’ble High Court of Karnataka in the case of Meenakshi Amma Endowment Trust reported in (2013) 354 ITR 219 (Kar), wherein it was held that trust cannot be denied registration for non- commencement of charitable activity. Moreover, the ld. Counsel for the assesse has submitted that the assesse now has started the charitable activity by taking over the existing university. We, therefore, set aside the impugned order by the ld. CIT-E and remit the matter back to him for re-consideration of assessee’s claim for registration u/s. 12A. The assessee is at liberty to file necessary evidences/explanation in support of the contention and claim. Grounds raised by the assesse are allowed for statistical purpose.

In the result, the appeal of assessee is allowed for statistical purpose. Order pronounced in the open court on 29-08-2018