Section 12 AA of the Income tax Act, 1961 — Trust — Registration of trust — Tribunal has not reversed any finding of the Commissioner but has merely asked the Commissioner to consider another document, the relevancy and importance of which would be determined by the Commissioner himself.[2020] 53 ITCD 8 (P&H)
Facts: The claim of the assessee was that it was an alumni association of a school and was set up for charitable purposes and was therefore entitled to the exemption under Section 12AA. The Commissioner rejected the application. In appeal the assessee placed on record an order under Section 12 A(a) in respect of the main school which had been granted about 15 years ago. On the basis of this the Tribunal sent back the case of the assessee to the Commissioner to re-consider the matter. Being aggrieved, assessee went on appeal before High Court.
Held, that the arguments of both counsel are too extreme. It cannot be said that the certification in favour of the school is entirely irrelevant nor can it be said that merely because the school got a certificate under Section 12A(a) the alumni association would also be entitled to exemption as of right. In the circumstances, what the Tribunal has done cannot be said to be illegal. The Tribunal has not reversed any finding of the Commissioner but has merely asked the Commissioner to consider another document, the relevancy and importance of which would be determined by the Commissioner himself. Moreover, it is also not disputed that when the original application was filed by the assessee it was a fledgling organization. Today another 2-3 years have passed and therefore, the Commissioner would have the benefit of seeing the records of the assessee to verify whether it does indeed meet the test of Section 12AA or not. In sum and substance, therefore, we do not deem it appropriate to interfere with the order. Consequently, the appeal is dismissed.