Commissioner Of Income Tax – I, Ludhiana v. M/S Spring Dale Educational Society (Regd.) Sherpur Road,Ludhiana

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH ITA No.166 of 2011Date of decision :18.10.2011 Commissioner of Income Tax – I, Ludhiana ...Appellant Versus M/s Spring Dale Educational Society (Regd.) Sherpur Road,Ludhiana ...Respondent CORAM: HON'BLE MR. JUSTICE HEMANT GUPTA HON'BLE MR. JUSTICE G.S.SANDHAWALIA Present: Mr.Rajesh Katoch, Advocate, for the appellant. ***** HEMANT GUPTA J. (Oral) The Revenue has raised the following substantial questions of law: (i)Whether on the facts and in law, the Hon'ble IncomeTax Appellate Tribunal was justified in holding thatthe manner of application of funds of trust do not fallwithin the purview of the Commissioner of IncomeTax while examining application seeking registrationu/s 12 AA of the Act, whereas such examinationwould allow Commissioner to satisfy himself aboutthe genuineness of the aims and objects of thetrust/institution and genuineness of its activities asenumerated in sub-clause (b) of Clause (1) ofSection 12 AA? (ii)Whether on the facts and in law, the Hon'ble IncomeTax Appellate Tribunal was justified in holding thatthe activities of the assessee-society were 'charitable'when after examining the facts the Commissioner ofIncome Tax has concluded that the applicant ITA No.166 of 2011 institution had not been applying funds for thepurpose of society but for the benefits of thesecretary and her relatives who have substantialinterest in the society?purpose of society but for the benefits of thesecretary and her relatives who have substantialinterest in the society? (iii)Whether on the facts and in law, the Hon'bleIncome Tax Appellate Tribunal was justified inallowing registration u/s 12A to the assessee, whenthe Applicant Institution was carrying out theactivities for the benefits of persons havingsubstantial interest in the garb of 'charitableactivity'?Income Tax Appellate Tribunal was justified inallowing registration u/s 12A to the assessee, whenthe Applicant Institution was carrying out theactivities for the benefits of persons havingsubstantial interest in the garb of 'charitableactivity'? The above-said substantial questions of law were also raised in ITA No.701 of 2010 decided on 05.10.2011 wherein ithas been held that while granting registration underSection 12 AA of the Income Tax Act, 1961, the genuineness ofthe Trust are relating to income and expenses to be examinedand questions are required to be examined while filingassessment. In view of the decision of this Court in ITA No.701 of2010 decided on 05.10.2011, we do not find that any substantialquestion of law arises for consideration of this Court. Dismissed. (HEMANT GUPTA) JUDGE (G.S.SANDHAWALIA) JUDGE sailesh