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2014 (10) TMI 1048 - ITAT CHENNAIExemption u/s 11 - refusing registration u/s 12AA - Proof of charitable object u/s 2(15) - non-approval of the state government for running educational institutions - HELD THAT:- There is no dispute that the assessee’s objects hereinabove point out education and ancillary activities are ‘charitable purposes’ prescribed u/s 2(15) of the Act. There is no preference given to any particular group of people. We find from page 43 of the paper book that the Directorate of Tamil Nadu Matriculation Schools, Chennai has already accorded approval on 4.3.2014 permitting the assessee to open a school for LKG to VIIIth class from academic year 2014-15. Therefore, the first objection does not survive. Assessee has not commenced its charitable activities and its activity as a commercial organization - the assessee has already enrolled students in the school. The hon'ble jurisdictional high court in DIT(E) vs M/s Seervi Samaj Tambaram Trust [2014 (2) TMI 32 - MADRAS HIGH COURT] has held that registration u/s 12AA of the Act ought not be refused on the ground of non-commencement of charitable activities. Lack of genuineness in the assessee’s activities as well - we accept the assessee’s contentions and hold it entitled for registration u/s 12AA of the Act. Needless to say, the issue of commercial activities and lack of genuineness abovesaid are left to be examined in the course of assessment as per law. - Decided in favour of assessee.
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