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2009 (6) TMI 982 - HC - Income TaxApplication for Registration u/s 12AA - activity for charitable purpose in terms of Section 2(15) - “charitable purpose” charity is soul of the expression - CIT after examine the copies of the accounts and expenditure, held that assessee society is not carrying any charitable activity u/s 2(15), as it was in a profit making business and rejected the application - ITAT allowed the said application. HELD THAT:- Clause (a) of sub- section (1) of Section 12 AA , makes it clear that the CIT is not supposed to allow the registration with blind eyes. We agree with the argument advanced on behalf of the appellant that mere imparting education for primary purpose of earning profits cannot be said to be charitable activity as interpreted by the Apex Court in MCD Vs. Children Book Trust [1992 (4) TMI 237 - SUPREME COURT], we are unable to agree with the ITAT that since word “education” is not qualified in Section 2(15), as such, every application received by a society, who is engaged in the business of imparting “education” is bound to be registered under Section 12 AA. If that view is accepted in that case, CIT will be failing in its duty to comply the provision of law contained in clause (a) of sub-section (1) of Section 12 AA. In expression “charitable purpose” charity is soul of the expression. Mere trade and commerce in education cannot be said to be a charitable purpose. Thus, Appeal is allowed. The order passed by ITAT is hereby set aside and order passed by CIT is restored.
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