Paramount Educational Charitable ... vs Assessee

Paramount Education Charitable Trust, Vs. The C.I.T., Vill. Akbarpur, Teh. Naraingarh, Panchkula. Distt. Ambala. PAN: AABTP5456E (Appellant) (Respondent)

Appellant by : Shri Sudhir Sehgal Respondent by : Dr.Amarveer Singh, DR

Date of hearing : 06.05.2015 Date of Pronouncement : 07.05.2015

PER BHAVNESH SAINI, J.M. :

This appeal filed by the assessee is directed

against the order of learned Commissioner of Income

Tax, Panchkula dated 11.8.2014, rejecting the

application for registration under section 12AA of the

Income Tax Act.

2. Briefly, the facts of the case are that the assessee

trust was created on 28.5.2007 and the trust has been

registered with the Joint/Dy.Registrar Naraingarh vide

registration No.682 dated 28.5.2007. The assessee trust has f i l e d 2

application for registration under section 12A of the Act in

prescribed form. In order to verify the genuineness of the

activities of the assessee trust, the report of the Assessing

Officer was called for vide letter dated 31.3.2014. The

Assessing Officer vide his report dated 18.7.2014 reported

that the aims and objects of the assessee trust are as under

:

i) To establish, maintain, carry on education institution any state.

ii) To look after and manage the addairs of Paramount Convent

School situated at Akbarpur Ambala.

iii) To give instructions viva voce or by post to both sexes,

irrespective of caste, creed etc. for the purpose of teaching in

Arts, Science studies relating to sports, counting and book

keeping, type writing and steno graphy, to making, law of the

land including commercial and labour laws, mechanical

and electric engineering and also what so ever

appertains to technical, vocational, commercial, cultural and

scientific education.

iv) To organize debates, lectures, exhibitions, expeditions,

research work, dances, operas, theatres, outdoor amusement

and excursions, public meeting, classes and conferences

calculated directly and indirectly to advance the cause of

education whether general, professional and technical.

v) To arrange for the children studying in the school run by the

Trust both formal and informal education so as to equip each

child with an appropriate mode enabling them to become a

good citizen of India.

vi) To inculcate through teaching amongst the students a 3

sense of National integration and unfailing respect for the

Country and its Constitution.

3. The Assessing Officer in his report also submitted

that the assessee trust has furnished copies of the returns

of income for the last three years alongwith copies of

audited balance sheet and income and expenditure

statement for the year ending on 31.3.2011, 31.3.2012 and

31.3.2013. As per the income and expenditure account of

the assessee trust, the expenditure more than 85% have

been utilized by the assessee trust. The Assessing Officer

has further reported that the Inspector of his office was

deputed to visit the office of the assessee trust, who has

reported that the assessee trust is doing charitable

activities. No commercial activities are being run by the

assessee trust. Thus the aims and objects of the assessee

trust are of general public utility as well as to provide

education and are covered by the provisions of section 2(15)

of the Income Tax Act.

4. The learned Commissioner of Income Tax on the

basis of material on record and report of the Assessing

Officer noted that the assessee trust is not registered under

the new Haryana Registration & Regulation of Societies

Registration Act, 2012 and accordingly rejected the

application for registration.

5. We have heard the learned representatives of both

the parties and perused the material available on record. 4

The learned counsel for assessee contended that the

assessee has fulfilled all the conditions of section 12AA of

the Act and since the assessee is a trust and registered with

the Registrar of trust and, therefore, the assessee need not

to get registration under the new Haryana Registration &

Regulation of Societies Registration Act, 2012 because the

assessee is not a society.

6. On the other hand, the learned D.R for the

Revenue relied upon the impugned order.

7. On consideration of the findings given in the

impugned order, we do not find any reason to sustain the

impugned order. At the stage of grant of registration or

refusal to grant registration under section 12AA of the Act,

the learned Commissioner of Income Tax is required to

satisfy himself about the objects of the trust or institution

and the genuineness of its activities. The learned

Commissioner of Income Tax called for the report from the

Assessing Officer. The Assessing Officer has reported that

the aims and objects of the assessee trust are of general

public utility as well as to provide education and are

covered by the provisions of section 2(15) of the Act. The

Assessing Officer also reported the aims and objects of the

assessee trust as reproduced above, which clearly prove

that the assessee existed for charitable purposes within the

meaning of section 2(15) of the Act. The Assessing Officer

also reported that the assessee has utilized more than 85%

of the income for achieving its aims and objects. Therefore, 5

the assessee trust satisfied the conditions for grant of

registration under section 12AA of the Act. The learned

Commissioner of Income Tax also did not adversely comment

upon the aims and objects of the assessee trust and

genuineness of activities. The only reason given by the

learned Commissioner of Income Tax for rejecting the

registration application was that the assessee trust is not

registered under the new Haryana Registration & Regulation

of Societies Registration Act, 2012. This may not be the

requirement under section 12AA of the Act. Further the

assessee is a registered trust, therefore, need not to go for

registration under the Societies Act. The reasons given by

the learned Commissioner of Income Tax are wholly

incorrect and alien to the provisions of section 12AA of the

Act. The material brought on record by the learned

Commissioner of Income Tax clearly suggest that the

assessee trust existed for charitable activities only.

Therefore, there was no reason for the learned

Commissioner of Income Tax to deny registration to the

assessee trust under section 12AA of the Act. Considering

the above discussion, we are of the view that the assessee

trust is entitled for registration under section 12AA of the

Act.

8. We accordingly set aside the impugned order and

direct the learned Commissioner of Income Tax, Panchkula

to grant registration to the assessee trust under section 6 12AA of the Act as per law within one month from the

receipt of this order.

9. In the result, the appeal of the assessee is

allowed.

Order pronounced in the open court on this 7th day

of May, 2015.

Sd/- Sd/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated : 7 t h May, 2015

*Rati*

Copy to: The Appellant/The Respondent/The CIT(A)/The CIT/The DR.

Assistant Registrar, ITAT, Chandigarh