TMI Blog2014 (3) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... reveal otherwise, that should weigh with the authorities who grant registration – also, while considering claim of exemption, authorities under the Act would look into the actual activity of the institution, especially main activity of the institution - In the absence of facts indicating that the activities carried on attracts definition of charitable purpose, one cannot find fault with rejection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn Educational and Charitable Trust running a school named 'Dawn International School'. An application came to be filed seeking registration under Section 12A of the Income Tax Act so as to get income tax exemption on the ground that they are imparting education and therefore it is a trust meant for charitable purpose. Respondent authority made an enquiry to satisfy himself whether the ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the school is in 2006 and the trust formed in 2007. The school is run in a building where air conditioned class rooms with breakfast and lunch are provided. The school is maintained and meant for benefit of children of non-resident Indians. Fee structure indicated huge amount collected even in kindergarten classes in the year 2006. For play school, which is pre-kindergarten, they were chargi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the decision reported in Nedumchalil C.Trust v. Municipal Commissioner (1991 (2) KLT 180). The question that arose was whether the fact of special wards for patients who pay full price are run or that salary is paid inclusive of the expenditure for the trustees will not change the nature of the trust, i.e., charity and charitable purpose. In that context, referring to Section 101(1)(d) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the actual activity of the institution, especially main activity of the institution. In the absence of facts indicating that the activities carried on attracts definition of charitable purpose, one cannot find fault with rejection of registration. When the school is running on commercial lines under the clad of charitable purpose, the parties were justified making enquiries and rejecting the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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