COMMISSIONER OF INCOME TAX Vs. SHERWOOD DIOCESAN COLLEGE SOCIETY, NAINITAL; ALL SAINTS COLLEGE SOCIETY, NAINITAL

JUDGEMENT

(1.) All these matters arise out of the same issue based on same facts and law, but for different assessment years. Accordingly, these appeals are taken up together and decided by this common judgment.

(2.) Section 13 of The Income Tax Act, 1961 (hereinafter referred to as the "Act") excludes the benefits of Section 11 and also of Section 12 to trust for private religious purposes. Nowhere the appellant urged that the assessee trusts were private religious trusts or were established for private religious purposes. The fact remains that the assessees were registered under Section 12A of the Act. While Section 11 of the Act deals with income from property held for charitable or religious purposes, Section 12 of the Act extends the benefits of Section 11 to also any voluntary contributions received by a trust created wholly for charitable or religious purposes or by an institution established wholly for such purposes.

(3.) In the instant cases, assessees are trusts established wholly for the purposes of imparting education. They received contributions from their pupil for the purpose of imparting education to them. Merely because the assessees made contributions to another trusts, also registered under Section 12A of the Act and because, in some of the years, their revenue was more than their expenditure; despite non-cancellation of their registration under Section 12A of the Act, the Assessing Authority, in a most blatant manner, held that the assessees are not entitled to the benefits of Sections 11 and 12 of the Act. That has been corrected by the Commissioner of Appeals and re-affirmed by the Tribunal. The present appeals have been filed without any just reason. The fact remains that, while Section 12A of the Act speaks about registration, Section 12AA prescribes the procedure for registration. Sub-Section (3) thereof makes it absolutely clear, in what circumstances, registration may be cancelled and who can do so. In the event, having had considered the returns and other documents filed by the assessees, the Assessing Officer was of the view that the assessees are no longer entitled to the registration, it would have been obligatory on its part to bring the same to the notice of the Commissioner for the purpose of de-registration of the assessees. Instead of that, in a most mala fide manner, he assessed the assessees. We are of the view that the Commissioner of Appeals and the Tribunal have concluded the matter, requiring no interference in appeals by the High Court.