Ita/429/2017 Of The Commissioner Of Income Tax (Exemptions), Chandigarh v. Kundan Vidya Mandir Alumni Association, Ludhiana (

ITA No.429 of 2017 (O&M) 222 IN THE HIGH COURT OF PUNJAB AND HARYANA.AT CHANDIGARH ITA No.429 of 2017 (O&M)Date of decision : 09.12.2019 The Commissioner of Income Tax (Exemptions), Chandigarh, ...... Appellant VeTSuU Kundan Vidya Mandir Alumni Association,Ludhiana ...... Respondent CORAM: HON'BLE MR.JUSTICEKE AJAY TEWARIHON'BLE MR.JUSTICELALIT BATRA --- Present :-Mr. Denesh Goyal, Advocatefor the appellant. Ms. Radhika Suri, Sr. Advocate with|Mr. M.S.Kanda, Advocatefor the respondent. --- AJAY TEWARI, J. (Oral) inThe present appeal has been filed under Section 260A of theIncome Tax Act, 1961 (in short ‘the Act’), against the order dated22.02.2017, passed by the Income Tax Appellate Tribunal, AmritsarBench, Amritsar, in ITA No.582/(Asr.)/2016. ?DThe claim of the respondent was that it was an alumniassociation of a school and was set up for charitable purposes and wastherefore entitled to the exemption under Section I2AA._ TheCommissioner rejected the application. In appeal the assessee placed onrecord 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 ITA No.429 of 2017 (O&M) sent back the case of the respondent to the Commissioner to re-considerthe matter. 3Counsel for the Revenue-appellant has argued that the orderof the Commissioner was legal and the order under Section 12 A(a)passed in favour of the Schoo! would have no relevance, 4On the other hand counsel for the respondent has argued thatonce the main school was recognized as a charitable institution an alumniassociation which was also not a profit organization would be entitled toexemption under Section 12AA. 5In our opinion, the arguments of both counsel are tooextreme. I[t cannot be said that the certification in favour of the school isentirely irrelevant nor can it be said that merely because the school got acertificate under Section 12A(a) the alumni association would also beentitled to exemption as of right. 6 In the circumstances, what the Tribunal has done cannot besaid to be illegal. The Tribunal has not reversed any finding of theCommissioner but has merely asked the Commissioner to consideranother document, the relevancy and importance of which would bedetermined by the Commissioner himself. Moreover, it is also notdisputed that when the original application was filed by the respondent itwas a fledgling organization. Today another 2-3 years have passed andtherefore, the Commissioner would have the benefit of seeing the recordsof the respondent to verify whether it does indeed meet the test of Section12AA or not. In sum and substance, therefore, we do not deem itappropriate to interfere with the order, vaConsequently, the appeal is dismissed. 8.Since the main case has been dismissed, the pending Civil Misc. Application, if any, also stands disposed of. ( AJAY TEWARI )JUDGE( LALIT BATRA)JUDGE 09.12.2019pooja sharma-l Whether speaking/reasonedWhether Reportable | Yes/NoYes/No