I N T H E I N C O M E T X AP P EL L AT E T R I BU N L D I VI S I O N B EN C H , C H D I G R H BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA No.1049/CHD/2013 ( Order under section 12A) Institute of Vs CIT-II, Correctional Administration, Chandigarh. Industrial Area, Sector 26, Chandigarh. PAN: AAAJI0166R (Appellant) (Respondent) Appellant by : Shri Alok Mittal Respondent by : Shri Manjit Singh & ITA No.1105/CHD/2014 Assessment Year : 2010-11 Institute of Vs ITO, Correctional Administration, Ward 5(4), Industrial Area, Sector 26, Chandigarh. Chandigarh. PAN: AAAJI0166R (Appellant) (Respondent) Appellant by : Shri Vineet Krishan Respondent by : Shri Manjit Singh Date of Hearing : 26.09.2016 Date of Pronouncement : 18.10.2016 O R D E R PER BHAVNESH SAINI, JM This order shall dispose off both appeals filed by same assessee. 2 2. We have heard ld. Representatives of both parties, perused findings of authorities below and considered material available on record. ITA 1049/2013 3. This appeal by assessee has been directed against order of ld.CIT-2 Chandigarh dated 18.09.2013 rejecting application for registration under section 12AA of Income Tax Act. 4. Earlier this appeal was dismissed for default, however, assessee moved Miscellaneous Application and explained cause of non appearance. ex-parte order was recalled and appeal of assessee was re-fixed for hearing on merits. 5. appeal is filed on following amended grounds of appeal : 1. That Ld. CIT-II, Chandigarh has wrongly rejected appellant's application for registration U/s 12A of Income Tax Act, 1961. 2. That Ld. CIT-II, Chandigarh has wrongly failed to properly & correctly appreciate nature of activities carried on by appellant and other relevant facts and circumstances of appellant's case. 3. That Ld. CIT-II, Chandigarh has wrongly held that appellant is engaged in imparting training to Government Officer who are paid by Government Departments and render services as part of official duties and therefore said activities cannot be categorized as object of general public utility. 4. That Ld. CIT-II, Chandigarh has wrongly held that no charity is involved in activities carried out by appellant. 3 5. That Ld. CIT-II, Chandigarh has wrongly held that objects of appellant are not charitable in nature. 6 That order passed by Ld. CIT-II, Chandigarh is bad in law as well as on facts and therefore same deserves to be quashed. 7. That appellant craves leave to add or amend any ground of appeal before same is finally heard and disposed of . 6. Brief facts of case are that assessee society filed its application in Form 10-A on 01.04.2013 for registration under section 12A of Act. aid society has been registered with Registrar of Firms & Societies, Chandigarh on 11.07.1989. inquiry report of Assessing Officer has been received in this case in which it was submitted that objects of assessee society are not of charitable nature as per provisions of Section 2(15) of Act. Hence, Assessing Officer has not recommended case for grant of registration under section 12AA of Act. ld.CIT fixed case for hearing and assessee society was requested to furnish supporting documents including books of account, bills and vouchers etc. In response to this, assessee's counsel attended proceedings before ld.CIT. During course of hearing, assessee was directed to explain as to how objects of assessee society were of charitable nature within meaning of provisions of Section 2(15) of Act. assessee filed written explanation before ld. CIT and relevant portion is reproduced in 4 impugned order which reads as under : I wish to submit that Various High Powered Committees constituted by Government of India have emphasized of need for imparting training to prison personal at different levels. These committees have observed that success of Correction Administration would depend mainly on faith, philosophy and efficiency of Correctional Personal which in turn are determine by quality of training to them. All India Committee on Jain Reforms (1980-83) also laid great stress on training of prison personal and recommended establishment of proper training institutions for correctional officer at regional and national levels-while training of warder staff could be impart at state level. Cabinet Committee on Political Affairs while considering scheme on modernization of Prison . Administration decided in their meeting on 02.08.1988 that Regional Training Centre for Prison personal should be established by Central Government preferably in Union Territories. There after society Institution of correctional administration has been incorporated with following objects.:- i) To impart, training in correctional administration and allied subjects to all officers of Central /State Government another, including those of prisons, Police and Judicial Department. ii) To promote and provide for study of Correctional Administration with special reference to Criminal Justice and machinery of Government and for educational and training purpose incidental thereto. iii) To undertake, organize and facilitate study courses, conferences and lecture and research in matter relating to correctional administration and machinery of Government. iv) To undertake and provide for publication of journal and of research papers and books to impart training in and promote study of correctional administration, v) To established and maintain libraries and information services to facilitate study of correctional administration and spreading information in regard thereto, 5 vi) To cooperate with approved institutions and bodies for purpose of helping to cause of correctional administration, vii) To act as nodal intuition of international cooperation in field of correctional administration and allied subjects. society has been in operation for last 25 years approx as per directions of Government of India with 10% funding by them. Furthermore Board of management of society was notified in Gazette of India from time to time, present Board was constituted by Govt. of India, Ministry of Home Affairs vide order on notification No.V-16014/3/99/GPA dated 11th May, 2004. As regard applicability of charitable activities are concerned it is stated that "Charitable purpose includes not only relief of poor, education and medical relief alone, but advancement of other objects of general public utility as well. clause is intended to serve as special definition of expression "charitable purpose" for Act, it is again inclusive and not exhaustive or exclusive. Even if object or purpose may not be regarded as charitable in its popular signification as not tending to give relief to poor or for advancement of education or medical relief, it would still be included in expression "charitable purpose" if it advances object of general public utility. expression "object of general public utility", however, is not restricted to objects beneficial to whole of mankind. object beneficial to section of public is object of general public utility. To serve charitable purpose, it is not necessary that object should be to benefit whole mankind or even all persons living in particular country of province. It is sufficient if intention to benefit section of public as distinguished from specified individuals. Observations to country made by Beaumont C.J. in CIT Vs. Grain Merchants' Association of Bombay (1938) 6 ITR 427(Bom): TC23R.412, that "an object of general public utility means on object of public utility which is available to general public as distinct from any section of public" and that objects of association "to benefit works of public utility confined to section of public, i.e.,- those interested in commerce" are not objects of general public utility," i.e., those 6 interested in commerce" are not objects of general public utility,". section of community sought to be benefited must undoubtedly be sufficiently defined and identifiable by some common quality of public or impersonal nature where there is no common quality uniting potential beneficiaries into class, it may not be regarded as valid. Hon'ble Supreme Court of India as explain word and phrases "objects of general public utility" in following cases which are clearly similar to our case:- Commissioner of Income Tax Vs. Andhra Chamber of Commerce (1965) 55ITR722(SC) Commissioner of Income Tax Vs. Gujarat Maritime Board (2008) 214 CTR (5CJ81: (2007) 295 ITR 561(SC) Commissioner of Income Tax Vs. Andhra Chamber of Commerce (1981) 130ITR184(SC) Since society is achieving political and social objects of Govt. of India and serving general public, it is prima facie fulfilling objects of general public utility- to group of society to bring unlawful people/prisoners to main steam of society. activities of society are clear cut not to earn any profits. 7. ld.CIT, however, did not accept contention of assessee and rejected application for registration under section 12AA of Act. findings of CIT in impugned order in paras 5 to 6 are reproduced as under: 5. submissions of applicant society have been considered but they are not acceptable for reasons as discussed below: AR of applicant society has submitted that society is achieving political and social objective of Govt. of India and serving general public 7 utility. From perusal of objects as detailed in Memorandum of Association of Society, it is seen that main object of society is to import training in correctional administration and allied subjects to all officers of Central/State Government, including those of prisons, Police & Judicial Department. society imparts training to officials of Government departments by way of organizing workshops, seminar on various subjects like human rights in management, personality development, right to information Act etc. It is evident from details furnished by AR during course of proceedings that society has organized workshop/various courses in its institute for imparting training to 570, 608 & 646 officers during calendar year 2010, 2011 & 2012 respectively. As such there is no element of charity involved because these workshops/courses were organized for officers only and in no way it can be termed as advancement of any other object of general public utility. AR's submission that this training is necessary to bring unlawful people/prisoners to main stream of society is also not relevant. applicant society is engaged in imparting training by way of organizing seminars etc. to Govt. officers who are being paid by Govt. departments and they render their services as part of their official duties. Such act of rendering services as official duty can never be categorized as object of general public utility and hence there is no charity involved. AR has also relied upon various decisions of High Court and Apex Court as quoted above regarding explanation of phrase 'General Public Utility' which have been considered. However, ratio of above quoted decisions is not applicable in this case as facts of above quoted cases are different and distinguishable from facts of instant case of applicant society. 6. In view of above, I am not satisfied about objects of applicant Society which is one of two conditions (i.e. object of society and genuiness of activities) considered imperative for grant of registration u/s 12AA and refuse to grant registration to applicant society u/s 12AA of Income Tax Act, 1961. 8 8. ld. counsel for assessee reiterated submissions made before authority below and referred to objects of assessee society which are mainly to impart training in Correctional Administration and allied subjects to all officers of Central/State Government and others including those of prisons, police and judicial departments. society was formed as notified by Central Government and its office bearers were mainly from Ministry of Home Affairs and IG (Prisons) etc. details are also filed in PB. He has referred to details supplied before ld.CIT on objects and functioning of assessee, copy of which is filed at pages 48 to 52 of Paper Book and reads as under : INSTITUTE OF CORRECTIONAL ADMINISTRATION,CHANDIGARH With increasing emphasis on treating Jails as Correctional Centres for rehabilitation of prisoners, subject of training of custodial officers and staff has assumed great significance. If society's attitude towards prisoner has to change beginning will have to be made with prison personnel schooled in old ideas of protection of society by inflicting punishment on prisoner. However, it is not only reorientation of attitude for which training is necessary, very complexities of crime in changed social scenario have made it imperative that custodial officers are well versed with aspects of criminology of law, public administration and personnel management, besides, of course, sociology and psychology which have bearing on criminal behaviour. Thus training to be imparted to prison personnel will have to be multidimensional in character and approach. This would naturally call for well-organized, training institutions both at state as well as regional levels. 9 Various High Powered Committees constituted by Government of India have emphasized on need for imparting training to prison personnel at different levels. These committees have observed that success of Correctional Administration would depend mainly on faith, philosophy and efficiency of Correctional Personnel which in turn are determined by quality of training imparted to them. All India Committee on Jail Reforms (1980-83) also laid great stress on training of prison personnel and recommended establishment of proper training institutions for correctional officers at regional and national levels - while training of warder staff could be imparted at state level. Cabinet Committee on Political Affairs while considering scheme on Modernization of Prison Administration decided in their meeting on 2.8.1988 that Regional Training Centres for Prison Personnel \should be established by Central Government preferably in Union Territories. In pursuance to this decision it was decided to set up Institute of Correctional Administration at Chandigarh and to develop it as Regional Institute on lines with existing Institute at Vellore which caters to training needs of Correctional Officers in Southern States of Tamil Nadu, Kerala, Karnataka and Adhra Pradesh. institute at Chandigarh has since started functioning from year 1989 with financial assistance from Centre. It is society registered under Societies Registration Act and it has its own Board of Management headed by Special Secretary (NE), Government of India, Ministry of Home Affairs. In absence of its own building, Institute started conducting short-term orientation courses in U.T., State Guest House at Chandigarh from July, 1991. Later on, Institute became functional in its present Campus w.e.f. February, 1999. existing building of Institute was purchased from Chandigarh Administration at cost of Rs. 73.59 lacs. cost of building was assessed by Central PWD and it was paid in five annual installments. four acre vacant land adjoining to building complex was allotted by Chandigarh Administration free of cost to Institute. We have since paid entire cost of .building to Chandigarh Administration (Director, Technical Education, Chandigarh). additions, alterations and renovation work of building complex was 10 entrusted to Engineering Department of Chandigarh Administration as deposit work. Staff Strength of Institute during last two financial years. Group A: Home Secretary, Chandigarh Administration concurrently holds charge of post of Director Group B : i) Lecturer in Psychology (Designated as Deputy Director) ii) Administrative Officer, working on contract basis. Group C : i) One Stenographer-curn-Computer Operator ii)One Driver iii)One Clerk iv)One Library Attendant on contract basis Group D i)Two Chowkidars (One is regular and one on contract) ii)Two Peons on contract basis iii) Two sweepers (one is on contract and other is part time on daily rates wages iv) Three Malis on daily rates wages. Institute has so far organized 326 training courses both for prison and police apart from holding number of symposia, seminars, panel discussions on Jail Reforms. following training courses have been organized for prison personnel : Identification of Best Prison Practices, Correctional Legislation, Counselling Techniques for Correction, Capacity Building for Prisoners Welfare, Attitudinal Change, Motivation, and Leadership for Correction, Contemporary Advances in Criminology and Correction, Correctional Alternatives to Imprisonment, Emerging Models and - Measures of Correction : Intramural and Extramural, Principles and Techniques of Correctional Management, etc. Hon'ble High Court Judges, Professors in Universities from various disciplines viz., Psychology, Sociology, Criminology, Laws, Psychiatry and Jail Administrators have been participating in Correctional Programmes of Institute. Since Jail Administration that country has inherited is governed 11 by philosophy of deterrence custody orientation gains precedence over correction. What is needed is effective introduction of correctional measures in Jails. Better known such measures are education, vocational training employment, rehabilitation of prisoners after release, meditation, positive reinforcement and after care services. introduction of such measures obviously shall require change in aim and objective of prison administration. It also underlines need to recruit correctional staff as well as initiating existing staff in theory and practice of correction by means of inservice training. This precisely is what Institute is striving to achieve by organizing courses on correctional administration and correctional services in Jails. Of late, Institute has started organizing specialized training courses for police personnel of Union Territory, Chandigarh and Himachal Pradesh. theme of such courses have been Stress Management, Gender Sensitization, Police-Community Relations and Media Management, Drug Law Enforcement, Attitudinal Change, Motivation and Leadership, Counselling Skills for Effective Policing, Human Rights and Custodial Deaths, etc.. training courses being organized by Institute not only generate positive orientation in participants about correctional philosophy and they tend to equip participants with skills and techniques of correction. Some of salient features of our training courses are :- i) Importance of education, particularly vocational education for correction is emphasized. While education enhances self-concept of prisoner, vocational education paves way to correction by making him self-reliant and socially acceptable. In this context, Prison Administration in Rajasthan State is doing commendable job in as-much as they have succeeded in starting Industrial Training institute in Jail premises itself for imparting skills and training for prison inmates. They have also started computer training courses apart from advance bourse in tailoring in jail premises. (ii) concept and techniques of counselling are explained at length to participants. They are trained in use of various aids for correction. Identifying listening as crucial element of counselling, workshops are conducted so as to sensitize participants to skills of listening for empathetic understanding. officers are advised to build trust and rapport through process of Counselling. 12 (iii) Our trailing courses also give due importance to concept of stress management. factors and psychosomatic outcome of stress are brought home to participants. Participants are also trained in stress relieving techniques. (iv) awareness is being created amongst prison management about role and participation of private industrial entrepreneurs in prison industry. In fact beginning has been made in prison in Himachal Pradesh Where kerosene heaters on Japanese model are being manufactured / assembled by NRI industrialist. His plans to employ prisoners as unskilled labour in his enterprise are apt to go long way in rehabilitation of prisoners after their release with money they will earn in prison. Similarly, prison department in Punjab State has involved private entrepreneurs with whose cooperation sports goods are being manufactured in Jail Premises of Jalandhar v) training courses of Institute also include workshops on techniques of behaviour Modification, which include life planning, mental healing and self-analysis. vi) Guided : by experience of some previous courses in which participants expressed their concern about lack of co-ordination among agencies of criminal justice administration, symposia, seminars and panel discussions are arranged where importance on need for co-ordination among prison, police and judiciary is stressed. It is feared that sometime these agencies are found working at cross purposes thereby dong disservice to cause of correction. For instance, police still resort to third degree methods to extract confession rather than employing scientific methods. vii) To achieve goal of correction, our stress is on ritualistic, scientific and holistic measures. ritualistic measuring signifies strict enforcement of discipline within prison in accordance: with rule book. They be complemented with scientific classification of prisoners. holistic intervention implies comprehensive understanding of root cause of criminality and corresponding mode of treatment leading to provision of after care for rehabilitation. Most important of all, our courses emphasize need for purity of consciousness leading to consistency between thought, words, and action. This is necessary in first instance for correctional agent and then for prison inmates for achieving goal of correction. 13 9. ld. counsel for assessee referring to above aims and objects and activities of assessee submitted that object of creation of assessee society is to improve attitude and behaviour of prison and jail authorities towards offenders and thus, try to help them to assimilate back into society which shows that same is object of general public utility as offenders are enabled to lead good public life when they came out of prison. ld. CIT did not appreciate nature of activities carried on by assessee and relevant facts. bare perusal of objects for which assessee society is created and activities under taken by assessee society shows that same in all respect and in essence fulfilled criteria to fall within ambit of terminology Advancement of any other object of general public utility and thus, falls within definition of charitable purposes as defined under section 2(15) of Act. idea behind creation of assessee society was to provide training to jail/correctional centres for rehabilitation of prisoners, subject of training of custodial officers and staff has assumed great significance. If societies attitude towards prisoners has to change, beginning will have to be made with prison personnel staff. psychology of Correctional Institution towards criminals shall have to be changed so that attitude and behaviour of prisoners has changed, thus training to be imparted 14 to prison personnel will have to be multi- dimensional in character and approach. This would naturally call for well organized training institutions both at state as well as regional centres. ld. counsel for assessee further submitted that genuineness of activities of assessee have not been disputed by ld. CIT. object of assessee society are clearly for advancement of any other object of general public utility . Therefore, assessee is entitled for registration under section 12AA of Act. In support of his contention, he has relied upon decisions of Delhi High Court in case of Bureau of Indian Standards Vs Director General of Income Tax (Exemption) Writ Petition (C-1755/12 dated 27.09.2012) in which it was held that primary object for setting up such regulatory bodies would be to ensure general public utility . He has also relied upon decision of Gujrat High Court in cases of CIT Vs Kandla Port Trust 364 ITR 164 in which it was held as under : High Court have perused number of decisions of this court which have interpreted words, in Section 2(15), namely, "any other object of generally public utility". From said decisions it emerges that said expression is of widest connotation. word "general" in said expression means pertaining to whole class. Therefore, advancement of any object of benefit to public or section of public as distinguished from benefit to individual or group of individuals would be charitable purpose (Commissioner of Income-tax, Gujarat-Ill, Ahmedabad v. Ahmedabad Rana Caste association, (1983) 140 ITR 1 SC) . said expression would prima facie include all objects which promote 15 welfare of general public. It cannot be said that purpose would cease to be charitable even if public welfare is intended to be served. If primary purpose and predominant object are to promote welfare of general public purpose would be charitable purpose. When object is to promote or protect interest of particular trade or industry that object becomes object of public utility, but not so, if it seeks to promote interest of those who conduct said trade or industry (Commissioner of Income-tax Madras v. Andhra Chamber of Commerce, - (1 965) 55 ITR 722 SC) . If primary or predominant object of institution is charitable, any other object which might not be charitable but which is ancillary or incidental to dominant purpose, would not prevent institution from being valid charity- (Addl. Commissioner of Income- tax, Gujarat v. Surat Art Silk Cloth Manufacture Association, (1980) 121 ITR 1 (SC) He has also submitted that ld. CIT-II Chandigarh has granted registration under section 12AA to M/s Technical Teachers Training Institute vide order dated 13.07.2002. Copy filed. Its objective was to provide professional education and training for teachers of Engineering & Technology discipline in Technical Institution. 10. On other hand, ld. DR relied upon impugned order and submitted that assessee is merely providing training to government officers, therefore, it is not doing any charitable activity or any other object of general public utility, therefore, registration has been correctly denied to assessee. 11. We have considered rival submissions. Section 12AA of Income Tax Act provides procedure for 16 registration and provides that Commissioner on receipt of application for registration shall call for such document or information from Trust or Institution in order to satisfy himself about genuineness of activities of Trust or Institution and after satisfying himself about objects of Trust or Institution and genuineness of its activities may grant registration or may not grant registration. Therefore, before grant of registration or rejecting grant of registration, ld. CIT is required to satisfy himself about objects of institution and genuineness of its activities. Section 2(15) of Act provides definition of charitable purpose and reads as under : 2 ( 1 5 ) "charitable purpose includes relief of poor, education, medical relief, '"preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest,] and advancement of any other object of general public utility: Provided that advancement of any other object of general public utility shall not be charitable purpose, if it involves carrying on of any activity in nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for cess or fee or any other consideration, irrespective of nature of use or application, or retention, of income from such activity:] "[Provided further that first proviso shall not apply if aggregate value of receipts from activities referred to therein is "[twenty-five lakh rupees] or less in previous year;] 17 12. In this case, genuineness of activities of assessee have not been doubted because it is admitted fact that assessee society has organized workshop/various courses in its Institute for imparting training to officials large in number, in many years. Any other object of general public utility are very wide words. Their exact scope has not been and perhaps cannot be defined. facts and circumstances of case shall have to be considered in detail. Whether object is of general public utility must be determined having regard to particular circumstances that emerge under conditions of Indian life, and standard of customary law and common opinion amongst community. object would be of general public utility if it defines section of public or inhabitants of particular locality, provided class of beneficiaries is well defined. In CIT V Surat Art Silk Cloth Manufacturing Association 122 ITR 1, Larger Bench of Hon'ble Supreme Court re-affirmed ratio of Andhra Chamber of Commerce and held that similar company formed to promote trade and commerce in cloth and yarn to be entitled for exemption as serving object of general public utility. 13. To better understand nature of functions and objectives of Institute of Correctional Administration, it is imperative in first place to understand meaning of term correctional . As 18 per wikipedia, correction , corrections and correctional are umbrella terms used in criminal justice to describe variety of functions typically carried out by government agencies involving punishment, treatment and supervision of prisoners who have been convicted of crimes. Its functions commonly include imprisonment, parole and probation. typical Correctional Institute is prison. correctional system thus refers to network of agencies that administer jurisdiction of prison and community-based program like parole and probation board. This system is part of larger criminal justice system which additionally includes police, prosecution and prison. In nutshell, Correctional Administration refers to treatment meted out to prisoners by government agencies as part of criminal justice system. 13(i) For effective functioning of Indian Law and justice system correctional system plays very important role. basic principles guiding correctional system has been laid down by Hon'ble Supreme Court of India in its judgment on various aspects of prison administration which are, firstly, person in prison does not become non-person. Secondly, person in prison is entitled to all human rights within limitations of imprisonment. Thirdly, there is no justification for aggravating suffering already inherent in process incarceration. What 19 emerges from above is that correctional system aims at ensuring that society at large is kept safe by separating them from individuals who have committed crime, without involving any human rights violation of criminal in process. There are several aspects of correctional system. Punishment of wrong doers to ensure they pay price for crime committed as also to deter them from committing same in future is one of aspects. Rehabilitation of persons is another aspect. purpose of rehabilitation being to give prisoner second chance to become contributing member of society and avoid become repeat offence, thus weeding out and eliminating bad elements in society. 14. There are instances of mis-behaviour, torture and maltreatment in Correctional Homes/prisons by authorities of prison and even by other inmates. convicts already having criminal mind, may not improve their attitude and behaviour in such circumstances even when they are serving sentence in criminal case. It is known fact that in criminal cases, various types of punishments have been provided i.e. for petty offence to heinous offence. In criminal cases, intention of offender and mens-rea are considered while dealing with criminal cases and many times, offenders are found habitual in committing crimes and many times it is seen that criminals commit crime by their nature. 20 How they are treated in Correctional Home/prison, are most important, relevant and necessary fact to improve them because if they are corrected and improved in their attitude and behaviour, ultimately it would improve standard of society because after completion of their sentence, they would again be re-habilitated in civil society. Otherwise, if their attitude and behaviour remained with criminality, their presence in society would be dangerous to public at large. 14(i) In above backdrop, objective of assessee institute of imparting correctional administration training only serves to strengthen criminal justice system in country and make it more effective. By imparting training to concerned officers in correct administration, it ensures besides other thing that convicts when released are equipped to merge themselves in main stream of society and become contributing members rather than disturbing elements. This for all purpose serves larger interest of society/general public and can be nothing else but public utility service. fact that people have been awarded Ramon Magsaysay award for government service including human prison reforms outlines public utility of correctional system. assessee, therefore, rightly contended that holistic intervention implies comprehensive understanding of root cause of criminality and corresponding mode of 21 treatment leading to provision of after care for rehabilitation. prisoner coming to main stream of society is relevant and benefit of general public and society. 15. benefit to society/community is of essense of valid charity. Re-habilitation of convicts/criminals in society after serving their sentence without profit motive is also object of general public utility, since it promotes interest of civil society. When primary purpose and predominant object are to promote welfare of general public, purpose would be charitable purpose. 15(i). imparting of training in Correctional Administration to all officials of prison/police/judicial department would ultimately benefit prisoners to change their attitude and behaviour so that they can be re-habilitated in society on completion of their sentence. Ultimately, consumer of this training provided to officers of Correctional Administration would be initially prisoners who are part of society and ultimately general public of society. training would promote welfare of general public. objects of assessee are to promote welfare of general public which would be charitable in nature. Therefore, primary purpose and predominant object of assessee society are to promote welfare of general public, purpose would be charitable purpose. ld. CIT-II 22 Chandigarh also granted registration under section 12A/12AA of Act to Technical Teachers Training Institute (supra) in similar circumstances. 16. record revealed assessee moved for condonation of delay in filing registration application under section 12A but such provisions would not be applicable from 01.06.2007 because assessee society filed application on 01.04.2013. 17. Considering totality of facts and circumstances and above discussion, we are of view that objects of assessee society are charitable in nature and for advancement of any other objects of general public utility as defined under section 2(15) of Act. genuineness of activities of assessee has not been doubted by ld. C I T. Therefore, assessee is entitled for registration under section 12AA of Act. 18. In this view of matter, we set aside impugned order and direct ld. CIT to grant registration to assessee under section 12A/12AA from day when application for registration was filed or any other earlier date as per law. ld. CIT shall grant registration certificate within one month from date of order. 19. In result, appeal of assessee is allowed. 23 ITA 1105/2014 ( A.Y. 2010-11) 20. This appeal by assessee has been directed against order of ld. CIT(Appeals) Chandigarh dated 17.09.2014 for assessment year 2010-11 on following grounds : l. That order passed by Commissioner of Income Tax (Appeals), Chandigarh in Appeal No. 168/13-14 dated 17.09.2014 is bad in law and contrary to law and facts in correct manner and in accordance with statute. 2. That Id. Commissioner of Income Tax (Appeals), Chandigarh gravelly erred in upholding order of Id. Assessing Officer in which he has gravelly erred in ignoring fact that grant provided by MHA (Central Govt.) is not voluntary contribution but is in respect of amount for which appellant is Nodal Agency and same is provided in planned budget. As such is not income of appellant. 3 That Id. Commissioner of Income Tax (Appeals), Chandigarh gravelly erred in upholding order of Id. Assessing Officer in which he has gravelly erred in ignoring fact that appellant is acting as Nodal Agency for carrying out projects for which it was given grants i.e. training courses on Human Rights in Prison Management, Prison Security Management, Personality Development and Development of prison personnel, Gender Sensitization, etc. and workshops on Juvenile Justice and Anti-Human Trafficking etc. 21. This appeal was also dismissed in default earlier which have been restored on filing Miscellaneous Application by assessee and earlier order was 24 recalled and appeal was re-fixed for hearing on merits. ld. CIT(Appeals) noted in impugned order that Assessing Officer has assessed income at Rs. 1,04,78,183/- as against Rs. 38,33,687/- as per Income & Expenditure Account. It has been contended by assessee that while amount received by way of grants from Ministry of Home Affairs are shown as Revenue Receipt in Income & Expenditure Account, expenses incurred for various projects for which grants were received, should have been allowed as deduction. ld. CIT(Appeals) accepted contention of assessee and held that what is assessable is excess amount of income over expenditure, so Assessing Officer should have assessed income of Rs. 38,33,687/- and not receipt of Rs. 1.04 Crore. appeal of assessee was, accordingly, allowed. 22. After hearing rival contentions, we are of view matter requires re-consideration at level of Assessing Officer. When matter was taken up for assessment, assessee made claim of exemption under section 11 of Income Tax Act. However, assessee could not produce Registration Certificate under section 12AA of Act. In fact, there was no registration effective in favour of assessee for assessment year under appeal. Assessing Officer, therefore, determining income of assessee at 25 Rs. 1.04 Crores, did not grant exemption under section 11 of Income Tax Act. assessee raised grounds of appeal before ld. CIT(Appeals) that since assessee society is nodal agency, therefore, it is not income of assessee. This point has not been decided by ld. CIT(Appeals). assessee has raised similar ground of appeal before Tribunal. Since appeal for grant of registration have been allowed under section 12AA of Act in ITA 1049/2013 (supra) and registration application was filed only on 01.04.2013, therefore, registration under section 12AA as granted may not apply to assessment year under appeal i.e. 2010-11 because of amendment in Section 12A of Income Tax Act. Therefore, this matter requires re-consideration at level of Assessing Officer on point as raised before ld. CIT(Appeals) as well as in grounds of appeal before Tribunal. 23. We, therefore, set aside orders of authorities below to above extent on grounds raised above and restore matter in issue to file of Assessing Officer with direction to re-decide grounds raised by assessee before ld. CIT(Appeals) as well as before Tribunal. Assessing Officer shall give reasonable opportunity of being heard to assessee. We make it clear that whatever relief has been granted 26 by ld. CIT(Appeals), shall not be subject matter before Assessing Officer in remand proceedings. 24. In result, appeal of assessee is allowed for statistical purposes. 25. ITA 1049/2013 is allowed. ITA 1105/2014 is allowed for statistical purposes. Order Pronounced in Open Court. Sd/- Sd/- (ANNAPURNA GUPTA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 18th October, 2016. Poonam Copy to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT,DR Assistant Registrar, ITAT/CHD Institute of Correctional Administration v. CIT-II, Chandigarh