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2014 (5) TMI 506 - AT - Income TaxRejection in grant of registration u/s 12AA of the Act – Educational institutions - Held that:- No adverse finding has been given to the effect that the assessee society’s aims and objects are not charitable in nature - Books of A/Cs are properly maintained on which there are no adverse comments - A certified copy of memorandum is proper compliance to furnish the documents - The assessee having accumulated surplus in past has no effect on the registration in as much as the surplus has been kept by the assessee either in FDRs or investment in purchase of land. There was no merit in the observation that the assessee has not demonstrated any nexus between the purchase of land and objects - For a society running schools, the building construction become integral part of the activity for which purchase of land becomes an essential feature - Thus, the adverse inference on nexus is misconceived in any case the issues about surplus or claiming depreciation become issues relevant for the assessment proceedings and have no bearing at the time of initial registration u/s 12A - Relying upon Shri Gian Ganga Vocational & Educational Society Versus Commissioner of Income-tax, Rohtak [2013 (11) TMI 165 - ITAT DELHI] - the assessee society is eligible for registration u/s 12AA which should be granted – Decided in favour of Assessee.
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