CREDAI, SOLAPUR,SOLAPUR vs. COMMISSIONER OF INCOME-TAX,

Shri Vishnu Bhutada appearing on behalf of the assessee submitted that the assessee is a trust registered under the Society Registration Act, 1860 on 09-01-2014. The registration certificate is at page 12 of the paper book. The ld. AR submitted that the assessee/appellant has its apex body which is duly registered under the Trust Act and also enjoys the benefit of registration u/s. 12A of the Act. CREDAI has branches in various cities and are independently registered as trust with similar objectives as that of the apex body. The respective branches in various cities independently apply for registration u/s. 12A to the Department and they have granted the benefit of registration u/s. 12A of the Act. The ld. AR referred to the aims and objects of the appellants at page 9 of the paper book. The ld. AR contended that the main object of the assessee is hold workshop, seminar, and exhibition for its members who are engaged in the promotion of real estate development and the investors who are interested in buying the properties/flats etc. as per their requirement. The ld. AR pointed that the Commissioner of Income Tax (Exemptions) has erred in observing that the main object of the society is to carry out activities for the promotion of real estate development business. It is not the assessee who is engaged in the business of real estate development but the members of the assessee who are engaged in such activities. The assessee provides a common platform for the real estate developers and the investors. The ld. AR pointed that the Commissioner of Income Tax (Exemptions), Pune has granted registration u/s. 12AA to the Sangli branch of CREDAI vide order dated 24-11-2017 on same set of facts. The objects of assessee and CREDAI,

On the other hand Shri Rajeev Kumar representing the Department vehemently defended the order of Commissioner of Income Tax (Exemptions). The ld. DR submitted that a perusal of the impugned order reveal that the assessee has not furnished necessary documents before the Commissioner of Income Tax (Exemptions).

We have heard the submissions made by representatives of rival sides and have perused the impugned order. We find that Commissioner of Income Tax (Exemptions) has denied registration u/s. 12AA of the Act on the ground that the objects of society reflect that the assessee is engaged in the business of real estate development. The ld. AR of the assessee has placed on record a copy of order dated 24-11-2017 passed by Commissioner of Income Tax (Exemptions), Pune granting registration u/s. 12AA to CREDAI, Sangli Branch. The ld. AR of assessee has stated at the Bar that the objects of assessee are identical to the object of CREDAI, Sangli.

In view of the fact that registration u/s. 12AA has been granted to CREDAI, Sangli and the objects of the assessee are stated to be pari materia with CREDAI, Sangli, we deem it appropriate to remit this file back

In the result, the appeal of assessee is allowed for statistical purpose.