ALEXANDRA SCHOOL Vs. COMMISSIONER OF INCOME TAX-II

JUDGEMENT

(1.) THE present appeal has been filed by the assessee under Section 260 -A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") against the order dated 26.04.2013 (Annexure A/1) whereby the Commissioner of Income Tax -II, Amritsar(hereinafter referred to as "the CIT") declined to grant registration under Section 12AA of the Act on the application filed by the appellant. The order dated 26.2.2014 (Annexure A/2) passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar (hereinafter referred to as "the Tribunal") in ITA No. 329 (Asr)/2013 for the assessment year 20012 -13 upholding the order of the Commissioner is also subject matter of challenge.

(2.) THE reasoning given by the authorities as per impugned orders is that the appellant had only been created for the benefit of a particular religious community and therefore, under Section 13(1) (a) and (b) of the Act, it was not entitled to the benefit of Sections 11 or 12 for exclusion of the income.

(3.) THE facts as per record would go on to show that the appellant society is registered with the Registrar of Societies under the Societies Registration Act, 1860 since 15.3.1976. On the strength of Memorandum of Association dated 22.3.2002 (Annexure A/4) it filed an application for registration as a charitable institution under Section 12AA of the Act on 30.10.2012. A show cause notice was issued on 21.3.2013 to the appellant that since the main purpose of the association was to run a school catering to Christian community as per its Memorandum of Association, how it was eligible for registration. In the reply dated 25.4.2013 (Annexure A/5), it was brought to the notice of the Commissioner that the school was affiliated with the ICSE Board and did not preach or teach Christianity. There was no period of religion and students were only taught that part of Christianity which made them human and secular. It was clarified that though the school was run by members of Christian society yet it was totally secular and no special emphasis was being given to students of Christian families or Christian staff employed. The percentage of students belonging to the said religion were also very small. The data showing the percentage was also attached with the said reply.