LAKSH EDUCATIONAL AND CHARITABLE TRUST,MUMBAI vs. DIT (E), MUMBAI

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ITA 6360/MUM/2012Status: DisposedITAT Mumbai12 April 2017AY 2012-135 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the order of the DIT(Exemption) and rejected the assessee's appeal. The assessee failed to appear before the Tribunal or provide any counter-arguments to the findings of the DIT(Exemption).

What were the facts?

The assessee trust applied for registration under Section 12AA of the Income Tax Act. The DIT(Exemption) rejected the application, citing that the trust was charging fees from students, which was considered a commercial activity. The assessee appealed this decision.

What were the issues?

Whether charging fees from students disqualifies a trust from obtaining registration under Section 12AA. Whether the assessee's failure to appear before the Tribunal warrants dismissal of the appeal.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, MUMBAI BENCHES “A”, MUMBAI

Before: Shri Joginder Singh & Shri Rajendra

For Respondent: Shri R.P. Meena CIT-DR
Hearing: 12/04/2017

आदेश / O R D E R Per Joginder Singh (Judicial Member) The assessee is aggrieved by the impugned order dated 28/09/2012 of the Ld. Director of Income Tax (Exemption), Mumbai, challenging rejection of application of the assessee trust for registration u/s 12AA of the Income Tax Act, 1961 (hereinafter the Act) without appreciating that the assessee trust is carrying on the activities of secular education in India, more specifically, when the assessee is registered under the Bombay Public Trust Act, 1950 with the objective of imparting secular education.

2.

During hearing of this appeal, nobody was present for the assessee, whereas, Shri R.P. Meena, Ld. CIT-DR, was present for the Revenue, It is seen that the assessee filed this appeal on 17/10/2012 and on various dates, the Bench was not functioning, however, registered notices for hearing were issued to the assessee. On 29/06/2015, 18/01/2016, 17/05/2016, 23/06/2016 and 17/01/2017, the assessee did not appear before this Tribunal. Today also, the assessee neither presented itself nor moved adjournment petition. One of the registered notice issued to the assessee was returned by the postal authorities. Various registered notices were issued to the assessee to which, there was no response from the assessee. The assessee has neither moved any new address before the registry of the Tribunal nor represented itself. It seems that the assessee has nothing to say, therefore, we have no option but to proceed ex- parte, qua the assessee and dispose off this appeal on the basis of material available on record. Shri R.P. Meena, Ld. CIT-DR, strongly defended the impugned order.

1.

2.1. We have considered the submissions of Ld. CIT-DR and perused the material available on record. The facts, in brief, are that the assessee moved application on Form No.10A on 07/03/2012, in the office of the Ld. DIT(E). A notices dated 08/06/2012 was sent to the assessee to furnish certain details as is evident from para-2 of the impugned order. The managing trustee attended the office and filed certain submissions. On perusal of the audited accounts, it was found that the assessee received donation to the tune of Rs.6,77,000/-, fee income, expenses etc as is mentioned in para-3 of the impugned order. It was observed by the Ld. DIT(E) that the assessee trust was charging yearly fee of Rs.10,800/- (after 10% discount)from the children of play group and Rs.12,960/- for the nursery students (after 10% discount) from the students of junior K.G. and Senior K.G. The assessee trust was also charging additional fee of Rs.1000/-, per child for school kit/uniform. The Ld. DIT(E) relied upon the decision from Hon'ble Apex Court in the case of Sole Trustee, Loka Shikshana Trust vs CIT (101 ITR 234 (SC) and section 2(1) of the Act. It was found that the assessee trust does not fulfil the mandatory requirement prescribed u/s 12AA read with rule 17A and consequently, the application for registration was rejected. The assessee is in appeal before this Tribunal. Before coming to any conclusion, we are of the view that at least the assessee was expected to before this Tribunal. As mentioned earlier, the assessee did not appear, one of the registered notice, sent to the assessee was returned back by the postal authorities. For remaining notices/registered notices, the assessee did not appear. The factual finding recorded in the order of the Ld. DIT(E) was neither controverted by the assessee nor any written submissions were filed. Therefore, in the absence of any effective representation/explanation from the assessee, we affirm the conclusion drawn in the impugned order.

Finally, the appeal of the assessee is dismissed.

This order was pronounced in the open in the presence of ld. CIT-DR at the conclusion of the hearing on 12/04/2017.

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