No denial of sec. 12A registration merely on ground that trust was seeking exemption u/s 10(23C)(iiiad)

IT: Where assessee educational trust was engaged in running, managing and developing school to provide educational facilities along with scholarships to poor and disabled children, registration under section 12A could not be denied on ground that assessee having been claiming exemption under section 10(23C)(iiiad) should have sought approval under section 10(23C)(vi) and not under section 12A

[2018] 98 taxmann.com 232 (Chandigarh – Trib.)

IN THE ITAT CHANDIGARH BENCH ‘B’

Swami Vivekanand Education Society

v.

Commissioner of Income-tax (Exemptions), Chandigarh*

SANJAY GARG, JUDICIAL MEMBER

AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER

IT APPEAL NO. 388 (CHD.) OF 2018

SEPTEMBER  6, 2018

It is settled law that for the purpose of grant of registration under section 12A, the Commissioner (Exemptions) has only to consider the genuineness of the objects and the activity of the applicants. The same is clear from the language of section 12AA itself, which deals with procedure for Registration, and which states so in clear terms. [Para 6]

 Further one is unable to agree with the Commissioner (Exemptions) that an applicant asseessee seeking exemption under section 10(23C)(iiiad) has to necessarily seek approval under section 10(23C)(vi) and that it cannot seek approval under section 12A implying thereby that the approval under the said two sections cannot be sought alternately. While section 10(23C)(vi) deals with the issue of approval to be sought by universities or other educational institutions existing solely for educational purposes, section 12AA deals with registration to be sought by trusts or institutions carrying out charitable activities, which as per the definition of charity under section 2(15) includes education. Therefore, an institution indulging in the activity of imparting education can seek approval/registration either under section 12A or under section 10(23C)(vi) if it fulfils the condition specified therein. No provision under the Act has been brought to notice by the revenue, debarring institutions from seeking approval/registration under the said sections alternatively, nor does the same emanate from the order of the Commissioner (Exemptions). Further the revenue had also not pointed out any provision of law to the effect that an assessee seeking exemption under section 10(23C)(iiiad), has to compulsorily seek approval under section 10(23C)(vi). [Para 8]