The assessee had moved separate applications in prescribed form seeking registration under section 12A of the Act. The Commissioner, Moradabad, vide order dated 10.07.2008 had rejected the grant of registration to the said societies under section 12A read with Section 12AA of the Income Tax Act.
The Tribunal in the first round vide consolidated order dated 29.05.2009 had held that the said societies existed only for the purpose of imparting education.
The Tribunal observed that where the societies were running educational institution without any profit motive, then even if funds were given inter se between the societies, could not be ground to refuse the registration to the assessee societies unless it was shown that some personal benefit was drawn to make some benefit.
The Tribunal then held the assessee to be entitled to registration under section 12A/12AA of the Act. It was further held that the violation, if any, of section 13 of the Act would be decided while disclosing the assessment after the grant of registration.
Section 12A deals with registration of trust and section 12AA deals with the procedure for registration of a trust. If the NGO does not get itself registered u/s 12A, it will not be eligible to claim ‘Benefits of Registration u/s 12A of the Income Tax Act, 1961.
The issue which needs to be adjudicated on limited remand of the High Court to consider the genuineness of the activities undertaken by the assessee. The first aspect of the grant of registration under section 12A/12AA of the Act is that the object of the assessee society should be charitable in nature. The assessee was engaged in imparting education and the objects were of charitable in nature which has been accepted by the High Court.
The genuineness of the activities of the assessee society was concerned, the assessee had filed on record the audited accounts for different assessment years along with the assessment orders for the respective years and no adverse comments have been made against any of the assessee society, which are listed before the bench.
While considering the genuineness of the activities undertaken by the assessee the bench comprising of Sushma Chowla, Vice President and B.R.R. Kumar, Accountant Member to grant registration to the assessee from the date of the application moved by the assessee.Subscribe Taxscan AdFree to view the Judgment