M/S CHOUHAN EDUCATION SOCIETY,BHOPAL vs. THE ACIT 1(1), BHOPAL

This appeal by the assessee is directed against the order dated 26.11.08 of Ld. Commissioner of Income Tax (Appeals) (in short Ld. CIT(A) for Assessment Year 2000-01. The assessee has raised following grounds of appeal:

“1.In view of the facts and law, the ld. CIT(Appals) was not justified in denying the exemption u/s 10(23)(C) (iiiad) to the assessee society for A.Y. 2000-01. 2. In view of the facts and law, the Ld. CIT(A) has not considered the assessee society to be registered as per the provisions of u/s 12AA(2) of the Income Tax Act, 1961.

Chouhan Education Society Page 2 of 4 3.That on the basis of above facts, the assesee creeps to leave, to arch, to argue to amend any of the grounds of appeal on or before the dated of hearing.”

2. The assessee is a society, registered under M.P. Registration Act, 1973. The assessee is carrying out the activity of imparting education and claims its objects and activities are charitable. The assessee society applied for registration u/s 12A on 31.03.2000. Assessee requested the registration w.e.f. 1999-2000 however the registration was granted u/s 12A w.e.f 01.04.2003. The assessee filed its return of income for the year under consideration declaring the income after claiming exemption u/s 10(23C)(iiiad). Thereafter, the Ld. AO opened assessment vide notice u/s 148 dated 08.03.2006 and framed assessment by taking the excess of income over expenditure as well as grant in aid receipt by the assessee, as total income of the assessee at Rs. 36,05,590/-. The assessee challenged the action of the Ld. AO before the Ld. CIT(A) and contending that the assessee satisfied the conditions as provided u/s 10(23)(iiiad) of the Act as the assessee is solely exists for education and gross receipt of the assessee is less than Rs. 1 crore. Ld. CIT(A) did not accept this contention of the assessee and confirm the action of the Ld. AO, so far as denial of the exemption u/s 10(23C(iiiad) of the Act. Since the assessee was not granted registration u/s 12A for year under consideration but it was granted w.e.f. 01.04.2003 the benefit of section 11 & 12 of the Act was also denied to the assessee.

“7. We have considered the rival arguments of both sides, perused the material held on record and also examined the direction given by this Bench in the first round of litigation. After a careful consideration, we observe that the assessee filed application in Form No. 10A on 31.03.2000for grant of registration and on the basis of this application, the procedure of registration was set in motion. We observe that the Ld. CIT issued certain notices to the assessee on the basis of the application dated 31.03.2000 and the assessee too complied with those notices. However, realizing that no decision was coming from Ld. CIT and more particularly being aware of the fact that there was a change in jurisdiction from ITO, Ward-2 to Circle- 1(1), the assessee re-filed a copy of the original application along with documentary evidences on 07.01.2004. Ld. AR has pointed out that the filing on 07.01.2004 is a mere re-filing of documents to facilitate the registration process and there was no fresh application. Thus, we observe that the application was in fact filed on 31.03.2000 and not on 07.01.2004. We also find that it is not a case of revenue that the application dated 31.03.2000 was rejected by Ld. CIT as there is no such material produced before us. In such circumstances, therefore, Page 3 of 4

Chouhan Education Society Page 4 of 4 there is no justification to grant registration from 01.04.2003. In fact, the Ld. CIT ought to have granted registration from 01.04.1999. We also observe that the decision of this Bench in MAA Bagula Mukhi Shakti Peeth Charitable Trust Vs. CIT (supra) also supports assessee’s claim. Therefore, we are persuaded to direct the Ld. CIT(E) to rectify his order and grant registration from 01.04.1999.

Order pronounced in the open court on 02.03.2023.