January 2019

Section 12A Charitable or religious trust Registration of (Cancellation of) Where assessee educational society, set up with various aims and objects including improvement in standard of education of backward students of rural areas, was running a school and Commissioner had not doubted genuineness of aims and objects of assessee, application u/s. 12A could not be rejected merely on ground that secretary of society was getting lease rent for land given to society for running school or his wife who had requisite qualification was teaching in school and was being paid salary

K. B. Bhujle
Advocate

33.  CIT (Exemption) vs. Ambala Public Educational Society; [2018] 100 taxmann.com 131 (P&H): Date of order: 29th October, 2018

 

Section 12A Charitable or religious trust Registration of (Cancellation of) Where assessee educational society, set up with various aims and objects including improvement in standard of education of backward students of rural areas, was running a school and Commissioner had not doubted genuineness of aims and objects of assessee, application u/s. 12A could not be rejected merely on ground that secretary of society was getting lease rent for land given to society for running school or his wife who had requisite qualification was teaching in school and was being paid salary

 

The assessee-society was a trust registered with the Registrar of Societies, Haryana. The assessee-society was set up with various aims and objects including improvement in the standard of education of the backward students of rural areas. The assessee-society was running a school. It made an application for registration u/s. 12A of the Act. During the proceedings, the Commissioner was swayed by the fact that the secretary of the assessee-society was getting lease rent of certain amount per annum for land given to society for running school and wife of the secretary was teaching in school and getting salary from the school. It was further stated that the assessee-society was not registered under the New Haryana Registration & Regulation of Societies Registration Act, 2012. Accordingly, the application was rejected.

 

On appeal, the Tribunal ordered granting registration u/s. 12A to the society.

 

On appeal by the Revenue, the Punjab and Harayana High Court upheld the decision of the Tribunal and held as under:

 

i)    The contentions raised by the revenue lacks merit. There is no requirement u/s. 12A that the assessee-society is required to be registered under the 2012 Act. Moreover, the assessee-society explained before Tribunal that it had applied for registrat

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