SAVIKA BAHHUDESHIYA SANSTHA,AMRAVATI vs. CIT EXEMPTION, PUNE

These two appeals filed by the appellant are directed against the orders of ld. Commissioner of Income Tax, Exemption, Pune [the CIT, Exemption] both dated 30.06.2023 denying registration u/s. 12AB(1)(ac)(iii) and approval u/s.80G(5) of the Income Tax Act, 1961 (‘the Act’).

Briefly, the facts of the case in are that the appellant is a society registered under The Bombay Public Trust Act, 9150 and Societies Registration Act, 1860. It is engaged in the business of running a pre-primary school. The appellant made an application on 02.12.2022 in Form No.10AB under clause (iii) of section 12A(1)(ac) for grant of registration. On receipt of the said application, the ld. CIT, Exemption had called for certain information vide notice dt. 13.03.2023 issued through ITBA portal which was complied with. However, the ld. CIT, Exemption had denied the grant of registration u/s.12A(1)(ac) of the Act on the ground that the appellant trust was running a school without obtaining permission as stipulated under the Maharashtra Self- financed Schools (Establishment and Regulation) Act, 2012 (Mah.

Being aggrieved, the appellant is in appeal before us in the present appeal.

The ld. Authorised Representative submitted that as per the Maharashtra Self-financed Schools (Establishment and Regulation)

The ld. DR has no serious objection for remand of the matter to the file of CIT, Exemption for denovo adjudication.

We heard the rival submissions and perused the material on record. The short issue in the present appeal relates to whether or not the ld.CIT, Exemption was justified in rejecting the grant of registration u/s.12A(1)(ac) of the Act. On mere perusal of the order passed by the CIT, Exemption, it is evident that the ld.CIT, Exemption has proceeded on the basis that the appellant society had not obtained permission to run a school as per the Maharashtra Self- financed Schools (Establishment and Regulation) Act, 2012. It is the contention of the appellant society that it is only running a pre- primary school for which no permission is required to be obtained under the said Act. In the light of the submissions of the appellant society, we are of the considered opinion that the matter requires a remand to the file of ld. CIT, Exemption for denovo disposal of the application in accordance with law after affording due opportunity of being heard to the appellant society and we order accordingly.

The appellant also filed an appeal against the denial of approval u/s.80G(5)(iv) of the Act. Since the impugned order cancelling the registration granted u/s.12AB of the Act was restored back in the circumstances mentioned therein, this appeal against the denial of approval u/s.80G is also remitted back being consequential. We order accordingly.

In the result, both the appeals of the assessee stands partly allowed. Order pronounced on this 06th day of March, 2024.