COMMISSIONER OF INCOME TAX Vs. SATVARA EDUCATION FOUNDATION

JUDGEMENT

(1.) THE present Tax Appeal has been preferred by the revenue against the impugned judgment and order passed by the Income Tax Appellate Tribunal, Rajkot Bench, Rajkot (hereinafter referred to as 'the ITAT') dated 21/06/2013 in ITA No. 45/Rjt/2013 by which the ITAT has allowed the said appeal preferred by the assessee and has quashed and set aside the order passed by the CIT, Rajkot dated 10/12/2012 rejecting the application dated 12/07/2012 of the assessee for registration under Section 12A of the Income Tax Act, 1961.

(2.) THE facts leading to the present appeal in nutshell are as under;

(3.) IT appears that the Commissioner (hereinafter referred to as 'CIT') was not satisfied with respect to the activities and was of the opinion that no substantial charitable activities were carried out by the assessee -trust/foundation. The CIT thus issued show -cause notice dated 21/11/2012 calling upon the assessee -trust/foundation to show cause as to why the application for registration should not be rejected as the foundation failed to comply with the statutory requirement. In response to the same, the assessee stated that it intends to promote and encourage education by providing them financial assistance, especially the weaker section of the society. In support, copy of three receipt vouchers, were provided. The CIT was not satisfied with the documentary evidence produced on record and, therefore, the CIT rejected the application under Section 12A of the Income Tax Act by observing that the scholarships, as claimed, have been given to the families with income ranging to Rs.90,000/ - to Rs.1,00,000/ - per annum and they have not been given any extraordinary brilliant students. The CIT observing that since no other major activities have been carried out by the assessee -trust/foundation, he is not satisfied with the genuineness of the foundation and accordingly rejected the application of the assessee.