COMMISSIONER OF INCOME TAX Vs. TAWI EDUCATIONAL TRUST

JUDGEMENT

(1.) This appeal is filed against the order dated 28.02.2014 passed by the Income Tax Appellate Tribunal Amritsar Bench in ITA No. 225(Asr)/2012 wherein the respondent preferred an appeal challenging the order of CIT (A) Jammu dated 30.03.2012 relating to the assessment year 2007-08 contending that the Assessing Officer was unjust to the assessee by changing the status from Trust to AOP and rejecting the registration of the application for registration as a trust since 11.02.2002 under section 12AA of the Income Tax Act.

(2.) The Tribunal found that the assessee had declared gross receipts from tuition fee etc. at Rs. 96,99,210.00 and apart from the said receipts, the assessee had received development fund at Rs. 5,20,500.00 and Rs. 44,000.00from the students during the normal course of activity of imparting education. The assessee, having not obtained any exemption certificate under section 10(23C)(vi) of the Act, cannot claim exemption as it has got registration under section 12 AA 30.11.2007 w.e.f. 01.04.2007 and the application for registration dated 11.03.2002 was not accepted and it was the contention of the assessee that the doctrine of consistency was to be followed as the Assessee had been treated as charitable trust and has been allowed exemption under section 12A of the Act for the assessment years 2002-03 and 2005-06 in the scrutiny assessment. Thus, in the past as well as in the subsequent year, during the course of scrutiny of assessment, the status of a trust was allowed. The said fact was not appreciated by the assessing authority and the said submission was accepted by the Tribunal and allowed the appeal holding that for all purposes, the registration of the assessee trust under section 12AA of the Act shall be deemed to have been granted for the financial year 2001-02 relevant to assessment year 2002-03.

(3.) Learned counsel appearing for the Revenue questioned the said finding by raising the following question of law: