TMI Blog2013 (12) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... facilitate social and economic empowerment, economic development programs, literacy programs, training programs for villagers and downtrodden people - The application cannot be rejected merely on the assumption that commercial activity will be carried out - Decided in favour of assessee. - - - - - Dated:- 24-1-2013 - Order The order of the Bench was delivered by Vikas Awasthy (Judicial Member).-The appeal has been filed by the assessee impugning the order of the Director of Income-tax (Exemptions) dated August 31, 2012 rejecting the application of the assessee for registration under section 12AA of the Income-tax Act (hereinafter referred to as "the Act"). The assessee is a company registered under section 25 of the Companies Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary 8, 2012, the assessee made an application for registration under section 12AA of the Act. The assessee was asked to furnish certain information and clarifications, which the assessee allegedly submitted. Dr. Anita Sumanth, appearing on behalf of the assessee, contended that application for registration was made immediately after incorporation of the assessee-company. The Director of Income-tax (Exemptions) has dismissed the application merely on assumption that commercial harnessing of such portal cannot be ruled out. Counsel for the assessee contended that a perusal of the objects of the assessee-company would clearly show that the same has been incorporated with the object to help, educate, facilitate social and economic empowerment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... objects" has been defined in section 2(15) of the Act, which is reproduced hereinbelow : "'charitable purpose' includes relief of the poor, education, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest, and the advancement of any other object of general public utility :" A bare perusal of the definition of the term "charitable purpose" shows that imparting education is a charitable activity. The Board Circular No. 11 of 2008 dated December 19, 2008 relates to exemption under section 11 in case of the assessee claiming both to be charitable institution as well as mutual organisation. The relevant extract of the cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted proviso to section 2(15) will not apply in respect of the first three limbs of section 2(15), i.e., relief of the poor, education or medical relief. Consequently, where the purpose of a trust or institution is relief of the poor, education or medical relief, it will constitute 'charitable purpose' even if it incidentally involves the carrying on of commercial activities." Thus, as per the circular where the purpose of a trust or institution is relief of the poor, education or medical relief, preservation of medical environment or preservation of historic monuments, it will constitute charitable purposes even if it incidentally involves commercial activities. Thus, the object of providing education is charitable activity even if conse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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