IRIS KNOWLEDGE FOUNDATION,NAVI MUMBAI vs. DIT (E), MUMBAI

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ITA 639/MUM/2013Status: DisposedITAT Mumbai22 October 2015AY 2013-143 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the DIT(E)'s order was brief and did not discuss the assessee's objects or its plea to be registered as an educational institution. The matter was restored to the DIT(E) for re-examination.

What were the facts?

The assessee, Iris Knowledge Foundation, applied for registration as an 'Educational Institution' under section 12A. However, the Director of Income-Tax (Exemption) registered it as a charitable institution pursuing 'General Public Utility'.

What were the issues?

Whether the assessee should be registered as an 'Educational Institution' or a 'General Public Utility' charitable institution. The adequacy of the DIT(E)'s order in considering the assessee's specific request.

Which sections of the Income-tax Act were involved?

Section 12A,Section 2(15)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “I”, MUMBAI

Before: SHRI B.R. BASKARAN & SHRI SANJAY GARG

For Appellant: Shri Ronak G. Doshi, A.R
For Respondent: Shri B.C.S. Nair, D.R
Hearing: 27.10.2015Pronounced: 27.10.2015

Per Sanjay Garg, Judicial Member:

1.

The present appeal has been preferred by the assessee against the order dated 28.11.2012 of the Director of Income Tax (Exemption) [hereinafter referred to as the DIT(E)] relevant to assessment year 2013-14.

2.

The grievance raised by the assessee in this appeal is that the assessee had applied for registration of the trust as an ‘Educational Institution’ whereas the Ld. DIT(E) has registered the assessee as charitable institution pursuing the objects of ‘General Public Utility’. The Ld. A.R. of the assessee has submitted that the main activity of the assessee is in relation to education, hence it should have been registered as charitable institution carrying on activity of education.

3.

We find that the order of Ld. DIT(E) is a very short order wherein the Ld. DIT(E) has granted the registration under section 12A to the assessee for carrying out the activity of General Public Utility. However, neither the objects of the assessee trust have been discussed nor there is any evidence on the file that the plea of the assessee that it should be registered as educational institution has been discussed. Even, we find that in the prescribed application form, there is no such column as to under what head or for what activities the institute is to be registered under section 12A. It has also not been provided as to whether the institution is to be registered as a charitable institution pursuing any of the activity as enumerated under section 2(15) of the Act or it should have been registered under a specific head or in case of specific activity like in this case as ‘General Public Untility’. Considering the overall facts and circumstances of the case, we restore the matter to the file of the Ld. DIT(E) to examine the contentions raised by the assessee and pass an appropriate order in accordance with law.

4.

In the result, the appeal of the assessee is treated as allowed for statistical purposes.

Order pronounced in the open court on 27.10.2015.

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