VAMIKA EDUCATIONAL AND SOCIAL WELFARE SOCIETY,GHAZIABAD vs. CIT (EXEMPTIONS), LUCKNOW

ORDER PER H.S. SIDHU, JM

The Assessee has filed this appeal against the impugned order dated 11/2/2016 passed by the Ld. Commissioner of Income Tax(Exemptions), Lucknow.

2. The grounds raised in the Appeal read as under:-

2. That Ld. CIT failed to appreciate the fact that assessee is running educational institution in terms of objects, whose cases of earlier years are also accepted u/s. 143(3) only after considering activities as charitable in terms of section 10(23C)(iiiad) hence order is inherently illegal.

3. That Ld. CIT even failed to appreciate the fact that registration in earlier year was refused merely for non- compliance without any adverse finding and assessee has chosen to file fresh application instead of going in appeal as case was covered u/s. 10(23C)(iiiad) till that year. Order is without any evidence or material against the assessee and is perverse.

It is, therefore, prayed that the Ld. CIT may kindly be directed be grant the registration u/s. 12AA of the Income Tax Act, 1961.

3. The facts narrated by the revenue authorities are not disputed by both the parties, hence, the same are not repeated here for the sake of brevity.

4. During the hearing, Ld. Counsel of the assessee has stated that Ld. CIT grossly erred in law as well as on facts in refusing to grant registration u/s. 12AA of the I.T. Act, 1961 even after satisfying with the objects/ activities of the society merely on the basis that assessee has not challenged the earlier rejection order dated 17.3.2015. He further stated that assessee is running educational institution in terms of objects, whose cases of earlier years are also accepted u/s. 143(3) only after considering activities as charitable in terms of section 10(23C)(iiiad) hence order is inherently illegal. It was the further contention of the Ld. Counsel of the assessee that Ld. CIT even failed to appreciate the fact that registration in earlier year was refused merely for non-compliance without any adverse finding and assessee has chosen to file fresh application instead of going in appeal as case was covered u/s. 10(23C)(iiiad) till that year. In view of the above, he requested the Bench to kindly direct the Ld. CIT to grant the registration to the assessee.

“1. The above named Society has filed an Application for registration u/s. 12A(a) of the Income Tax Act, 1961 on 21.8.2015 with the Commissioner of Income Tax (Exemptions), Lucknow.

17.03.2015 was already rejected by the Commissioner of Income tax (Exemptions), Lucknow. The Applicant has not challenged this order before the Hon’ble ITAT.

6. After perusing the aforesaid impugned order, we are of the view that Ld.CIT(E) has passed the impugned order by refusing to grant registration u/s. 12AA of the I.T. Act, 1961 merely on the basis that assessee has not challenged the earlier rejection order dated 17.3.2015, which is contrary in the eyes of law. We further note that Ld. CIT(E) has also not taken into consideration the fact that assessee is running educational institution in terms of objects, whose cases of earlier years are also accepted u/s. 143(3) of the I.T. Act only after considering activities as charitable in terms of section 10(23C)(iiiad). We further find that Ld.CIT(E) while rejecting the registration to the applicant has wrongly adopted the view that registration in earlier year was refused due to non-compliance without any adverse finding and passed the non- speaking order which is not sustainable in the eyes of law. Keeping in view of the facts and circumstances of the case as explained above, we are of the considered view that the matter needs to be remitted back to the file of the Ld. CIT(E) for fresh consideration for passing a speaking order. Accordingly, we set aside the issues in dispute to the file of the Ld. CIT(E) for fresh consideration, after giving adequate opportunity of being heard to the assessee/applicant. The applicant/assessee is also directed to fully cooperate with the Ld. CIT(E) and file all the requisite details/documents before the Ld. CIT(E) to substantiate its case.