Shri Ganesh Charitable Trust, Lucknow vs Assessee

This appeal is preferred by the assessee against the order of the ld. Commissioner of Income-tax denying registration under section 12AA of the Income-tax Act, 1961 (hereinafter called in short "the Act").

2. Though the assessee has raised various grounds of appeal, but they all relate to the nature of activities of the assessee and denial of registration.

3. During the course of hearing of the appeal, the ld. counsel for the assessee has invited our attention to the fact that during the course of adjudication of the application for grant of registration under section 12AA of the Act, the ld. Commissioner of Income-tax has called a report from the Assessing Officer and in response thereto, the report of the Assessing Officer was submitted to the ld. Commissioner of Income-tax by the Joint :-2-:

Commissioner of Income-tax along with remarks of the Assessing Officer. In the remark, the Assessing Officer has mentioned that the Trust was formed by trust deed dated 18.1.2012 and the activities of the Trust mainly relate to providing education. He has also mentioned that the Trust is running a school upto Class V in the name of Vinayak Convent School near Amausi Airport, Lucknow. While preparing the report, the books of account, bills & vouchers, minute book and other documents were also test checked by the Assessing Officer. Having convinced with the nature of activities of the assessee-trust, the Assessing Officer was of the view that the activities of the Trust were found to be in charitable nature and he accordingly recommended the case of the assessee for grant of registration under section 12AA of the Act. Though this report was received by the ld. Commissioner of Income-tax, but he did not make any reference of this report in his order and on his own he found fault in the Trust Memorandum and formed a view that the assessee was not engaged in the activities of imparting education. The ld. Commissioner of Income-tax accordingly denied registration.

4. The ld. counsel for the assessee has further contended that since the Assessing Officer has given a conclusive finding with regard to the nature of activities of the assessee and has recommended the case for grant of registration under section 12AA of the Act, the ld. Commissioner of Income- tax should have relied upon the report of the Assessing Officer and granted registration. If he was not convinced with the report of the Assessing Officer, he himself should have made an enquiry to bring something on record contrary to the findings of the Assessing Officer, but he has not made any effort in this regard and denied registration simply on the basis of assumptions, conjectures and surmises. The ld. counsel for the assessee has further contended that under the given facts and circumstances, registration under section 12AA may kindly be granted to the assessee. :-3-:

5. The ld. D.R., on the other hand, has submitted that the matter may be restored to the ld. Commissioner of Income-tax for re-adjudication of the request of the assessee for grant of registration under section 12AA of the Act afresh.

6. Having carefully examined the order of the ld. Commissioner of Income-tax in the light of the material placed on record, we find that the ld. Commissioner of Income-tax himself has called a report from the Assessing Officer with regard to the activities of the assessee-trust and the Assessing Officer has made a proper verification and examined the books of account, bills & vouchers. The Assessing Officer has submitted his report to the ld. Commissioner of Income-tax stating therein that the trust activities mainly relate to providing education and the Trust is running a school upto Class V in the name of Vinayak Convent School near Amausi Airport, Lucknow. The Assessing Officer was also convinced with the nature of activities of the assessee-trust and has recommended for grant of registration. Though this report was received by the ld. Commissioner of Income-tax, but he has not made any discussion of this report in his order. He, however, taken a contrary view without bringing any material on record. Where the assessee has placed all material with regard to the nature of activities, the ld. Commissioner of Income-tax should not have doubted the same without bringing anything on record. We also find force in the contention of the assessee that upto Class V School is not required to be recognized by any of the authorities. Therefore, the objection of the ld. Commissioner of Income-tax that school is not recognized by any authority is unfounded. Keeping in view the totality of the facts and circumstances of the case, we are of the view that the ld. Commissioner of Income-tax should have granted registration to the assessee under section 12AA of the Act, but he did not grant the same on account of reasons mentioned in his order, with which were are not convinced. We accordingly set aside the order of the :-4-:

ld. Commissioner of Income-tax and direct him to grant registration under section 12AA of the Act to the assessee.

7. In the result, appeal of the assessee stands allowed.

Order was pronounced in the open court on the date mentioned on the captioned page.

Sd/- Sd/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER

DATED:27th February, 2015 JJ:2002

Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR Assistant Registrar