MANU/II/0027/2022

IN THE ITAT, INDORE BENCH, INDORE

ITA No. 17/Ind/2021

Assessment Year: 2019-2020

Decided On: 20.06.2022

Appellants: AIC Prestige Inspire Foundation Vs. Respondent: CIT, Exemption, Bhopal

Hon'ble Judges/Coram:
Mahavir Prasad, Member (J) and B.M. Biyani

ORDER

B.M. Biyani, Member (A)

1. This appeal filed by the assessee is directed against the order dated 30.09.2020 of learned Commissioner of Income-Tax (Exemption), ["Ld. CIT(E)"], Bhopal u/s. 12AA(1)(b)(ii) of the Income Tax Act 1961.

2. The assessee is a company incorporated u/s. 8 of the Companies Act, 2013, established for various objects set out in the Memorandum of Association (MOA) filed to the Registrar of Companies which inter alia are to set up and run Atal Incubation Centres in partnership with Atal Innovation Mission, Niti Ayog, Govt. of India; encourage entrepreneurship and innovations, etc. On 11.03.2019, the assessee filed first-application to the Ld. CIT(E) in Form No. 10A for grant of registration u/s. 12AA of the Act but the Ld. CIT(E) rejected application vide first-order dated 27.09.2019 by making following observations:

(i) Certain objects of the assessee [as mentioned in the order of Ld. CIT(E)] are commercial in nature and they are not covered under "charitable purpose" in terms of section 2(15).

(ii) The assessee has not provided MOU or Agreement with Niti Ayog and accounts.

(iii) There is a provision to share the benefits of the assessee-company among its members.

(iv) The objects of assessee permit activities outside India.

The assessee amended its Memorandum of Association and Articles of Association under the Companies Act, 2013 and removed the objects for which the Ld. CIT(E) had raised objection. Thereafter, the assessee filed second-application on 20.01.2020 in Form No. 10A alongwith all required documents for grant of registration. However, vide second-order dated 30.09.2020, the Ld. CIT(E) has summarily rejected the second-application of the assessee by observing as under:

"The objects of the company claimed to set up and implement "Atal Incubation Centre (AIC)". It is seen that the application for the grant of Registration u/s. 12AA has already been rejected vide order dated 27.09.2020 (correct date is 27.09.2019). There has been no change in the object while making this application hence the present application is also rejected and the Registration u/s. 12AA is refused."

Feeling aggrieved by the aforesaid order dated 30.09.2020 of Ld. CIT(E), the assessee has filed present appeal and now before us.

3. The assessee has raised following grounds:

1. On the facts and circumstances of the case, the Ld. CIT (Exemption), Bhopal erred in rejecting registration of the foundation u/s. 12AA(1)(b)(ii) of the Income Tax Act, 1961 by stating that the objects of the foundation were not changed from the original thus not genuine, which is wrong, illegal and unjustified.

2. The appellant runs incubation centre for start-up under the scheme of NITI Aayog and allied work which is a Charitable Object.

3. The appellant prays for the relief and request to grant registration under section 12AA of the I.T. Act 1961.

4. The appellant carves leave to add, alter or amend any grounds of appeal as and when the necessity and occasion arises."

4. Ld. AR submitted that the Ld. CIT(E) has rejected the assessee's second-application dated 20.01.2020 on the sole reason that there is no change in the objects. The Ld. AR submitted that the fact is that the assessee had already omitted the objectionable objects before filing second-application and therefore the reasoning given by Ld. CIT(E) is far from truth. Ld. AR submitted that in fact the assessee had resolved all objections raised by Ld........