CIT JAIPUR Vs. RAJASTHAN STATE SEEDORGANIC PROD.

JUDGEMENT

(1.) By way of this appeal, the Department has assailed the judgment and order of the Tribunal whereby Tribunal has allowed the application of the assessee for grant of benefit under section 12A of the Income Tax Act.

(2.) The facts of the case are that the applicant, a society registered with Registrar of Societies on 30.9.1976 had filed an application seeking registration under section 12A of the I.T. Act on 27.3.2005. The same has been rejected by the ld. CIT on the basis that activity of the applicant could not be termed as charitable within the meaning of section 2 (15) of the Act; there were huge surpluses during Financial Years 2001-02 (Rs.63,33,168.00), F.Y. 2002-03 (Rs. 9,79,764/-), F.Y. 2003-04 (Rs.63,33,168.00) and F.Y. 2004-05 (Rs.92,82,728.00); accounts were not audited and returns of income for such years in which total income exceed Rs. 50,000.00 were not filed along-with Form No. 10B.

(3.) This court while admitting the appeal has framed following substantial question of law:-