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Income Tax Appellate Tribunal, DIVISION BENCH’A’, CHANDIGARH
Before: SMT. DIVA SINGH & DR. B.R.R. KUMAR
IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH’A’, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA No.1621/Chd/2017 Under Section 12AA
Dayanand Bhartiya Public School Vs. The CIT(E) Society, Jogindernagar Sector 17-E Mandi, H.P. Chandigarh PAN No. AAALB0151D
(Appellant) (Respondent) Appellant By : Shri. Swami Paramdev Bharti, ITO Respondent By : Shri. Sanjay Dahiya, CIT(DR)
Date of hearing : 23/07/2018 Date of Pronouncement : 26/07/2018
ORDER PER DR. B.R.R. KUMAR, A.M:
The present appeal has been filed by the Assessee against the order of the Ld. CIT(E), Chandigarh dt. 29/09/2017.
In the present appeal Assessee has raised the following grounds:
On the facts and circumstances of the case the learned Commissioner of Income-tax (Exemptions) erred in law by rejecting assessee's application for registration u/s 12AA holding that the Society and its activities were not genuine.
While rejecting the application of the assessee for registration u/s 12AA of the I.T. Act. 1961, the Commissioner of Income -tax (Exemptions) erred in law holding that once the application u/s 12A of the I.T. Act is rejected in one year it has no right to file such application for registration for the next year, even with the changed facts and circumstances of the case.
While rejecting the application u/s 12A the Commissioner of Income-tax (Exemption) erred in holding that the ground on which the earlier applications were rejected still hold.
While rejecting the application of the assessee for registration u/s 12AA The Commissioner of Income-tax (E) erred in law making it a ground for rejection that the case of the assessee clearly was a case of reapplication after amending the name of the society and bye-laws on 30-03-2017 subsequent to an earlier rejection of the case, whereas the Memorandum and amended bye-laws were in compliance to the H.P. Societies Registration Act, 2006, the change in the name can legally be made through such amemded Memorandum.
The Society is running the school and has no separate income of its own and entire receipts are that of the school only which have been shown in the receipts and payments therefore there is no question of filing separate accounts of the
society. Therefore the CIT(E) is not right in law and facts making it a ground for rejecting the application of the of the assessee for registration u/s 12AA.
Brief facts of the case are that the assessee is a public charitable society which was created through a Memorandum of Association and registered vide registration No. 4290/85 dated 09-07-1985 under the Societies Registration Act, 1860 under the name and style as Bhartiya Public School Management Committee, Joginder Nagar, Distt. Mandi, H.P. The Society was created for running a school under the name and style Bhartiya Public School at Joginder Nagar. The school is affiliated to Himachal Pradesh Board of School Education. It has been filing its returns of income since the assessment year 2010-11. Up to the assessment year 2013-14 its total turnover was less than one crore, therefore, its income was exempt u/s 10(23C)(iiiad) of the I.T. Act 1961.
3.1 The Himachal state Govt, had passed H.P. Societies Registration Act, 2006. Under the provisions of this act, all the public charitable societies were required to amend their Memorandums of Association and incorporate the bye-laws as were given in this Act. While amending the Memorandum of Association, the assessee also made little change in the name of the Society i.e. its name was changed from 'Bhartiya Public School Society' to 'Dayanand Bhartiya Public School Society'. This change of Memorandum of Association and change in name was duly approved by the Registrar of Societies, H.P. Block-25, SDA Complex, Shimla-9.
3.2 The society applied for registration u/s 12AA on 02-09-2014, on 28-05-2015 which was refused by the CIT(E) on the ground that the applicant could not produce the original documents, original registration certificate and memorandum of association. Even regarding the application filed on 31/03/2017 in the instant case the Ld. CIT(E) refused granting of Registration under section 12AA on the grounds that the assessee has not furnished accounts of the assessee society and relied solely on the accounts of the school which was an impediment in granting the Registration.
Before us the Ld. AR argued that all the required information had been submitted including the details of change of name and amendment made in the bylaws which have been duly informed to the Registrar of the Society.
We have perused the record before us and find that the applications of the assessee have been rejected owing to inadequate compliance of the requirements sought by the Ld. CIT(E). However, in the interest of justice the matter is being restore to the file of the Ld. CIT(E) to reconsider the matter after taking into cognizance all the relevant details/ Memorandum / Registration/ Amendments/ Accounts of the School as well as the consolidated Accounts of the Society. It is hereby directed to the assessee that all the relevant details should be submitted before the Ld. CIT(E) with due diligence without seeking unnecessary adjournments and duly complying with the notices issued from time to time. 6. As a result appeal of the Assessee is allowed for statistical purposes.
Order pronounced in the open Court.
Sd/- Sd/- (DIVA SINGH) (DR. B.R.R. KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated : 26/07/2018 AG
Copy to:
The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) The DR 5.