The Commissioner of Income-tax (Exemptions), Chandigarh v. Kundan Vidya Mandir Alumni Association
[Citation -2019-LL-1209-29]

Citation 2019-LL-1209-29
Appellant Name The Commissioner of Income-tax (Exemptions), Chandigarh
Respondent Name Kundan Vidya Mandir Alumni Association
Court HIGH COURT OF PUNJAB & HARYANA
Relevant Act Income-tax
Date of Order 09/12/2019
Judgment View Judgment
Keyword Tags charitable institution • charitable purpose • benefit of exemption
Bot Summary: The present appeal has been filed under Section 260A of the Income Tax Act, 1961, against the order dated 22.02.2017, passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar, in ITA No.582/(Asr. The claim of the respondent was that it was an alumni association of a school and was set up for charitable purposes and was therefore entitled to the exemption under Section 12AA. The Commissioner rejected the application. In appeal the assessee placed on record an order under Section 12 A(a) in respect of the main school which had been granted about 15 years ago. On the basis of this the Tribunal 1 of 3 ITA No.429 of 2017 2 sent back the case of the respondent to the Commissioner to re-consider the matter. Counsel for the Revenue-appellant has argued that the order of the Commissioner was legal and the order under Section 12 A(a) passed in favour of the School would have no relevance. The Tribunal has not reversed any finding of the Commissioner but has merely asked the Commissioner to consider another document, the relevancy and importance of which would be determined by the Commissioner himself. Today another 2-3 years have passed and therefore, the Commissioner would have the benefit of seeing the records of the respondent to verify whether it does indeed meet the test of Section 12AA or not.


IN HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No.429 of 2017 (O&M) Date of decision : 09.12.2019 Commissioner of Income Tax (Exemptions), Chandigarh. Appellant versus Kundan Vidya Mandir Alumni Association, Ludhiana Respondent CORAM : HON'BLE MR.JUSTICE AJAY TEWARI HON'BLE MR.JUSTICE LALIT BATRA Present :- Mr. Denesh Goyal, Advocate for appellant. Ms. Radhika Suri, Sr. Advocate with Mr. M.S.Kanda, Advocate for respondent. AJAY TEWARI, J. (Oral) 1. present appeal has been filed under Section 260A of Income Tax Act, 1961 (in short 'the Act'), against order dated 22.02.2017, passed by Income Tax Appellate Tribunal, Amritsar Bench, Amritsar, in ITA No.582/(Asr.)/2016. 2. claim of respondent was that it was alumni association of school and was set up for charitable purposes and was therefore entitled to exemption under Section 12AA. Commissioner rejected application. In appeal assessee placed on record order under Section 12 A(a) in respect of main school which had been granted about 15 years ago. On basis of this Tribunal 1 of 3 ITA No.429 of 2017 (O&M) 2 sent back case of respondent to Commissioner to re-consider matter. 3. Counsel for Revenue-appellant has argued that order of Commissioner was legal and order under Section 12 A(a) passed in favour of School would have no relevance. 4. On other hand counsel for respondent has argued that once main school was recognized as charitable institution alumni association which was also not profit organization would be entitled to exemption under Section 12AA. 5. In our opinion, arguments of both counsel are too extreme. It cannot be said that certification in favour of school is entirely irrelevant nor can it be said that merely because school got certificate under Section 12A(a) alumni association would also be entitled to exemption as of right. 6. In circumstances, what Tribunal has done cannot be said to be illegal. Tribunal has not reversed any finding of Commissioner but has merely asked Commissioner to consider another document, relevancy and importance of which would be determined by Commissioner himself. Moreover, it is also not disputed that when original application was filed by respondent it was fledgling organization. Today another 2-3 years have passed and therefore, Commissioner would have benefit of seeing records of respondent to verify whether it does indeed meet test of Section 12AA or not. In sum and substance, therefore, we do not deem it appropriate to interfere with order. 2 of 3 ::: Downloaded on - 14-12-2019 11:16:05 ::: ITA No.429 of 2017 (O&M) 3 7. Consequently, appeal is dismissed. 8. Since main case has been dismissed, pending Civil Misc. Application, if any, also stands disposed of. ( AJAY TEWARI ) JUDGE ( LALIT BATRA ) JUDGE 09.12.2019 pooja sharma-I Whether speaking/reasoned Yes/No Whether Reportable : Yes/No 3 of 3 Commissioner of Income-tax (Exemptions), Chandigarh v. Kundan Vidya Mandir Alumni Association
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