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2012 (1) TMI 239 - AT - Income TaxRefusing to grant the registration u/s 12AA - assessee running a school is charging high fees and running the elite educational institution/school and poor students of the society are unable to take/derive the benefit of the assessee-school - Held that:- As per the Trust Deed of the said assessee, it was permissible to award Scholarship outside the ‘Arur Family’ and also provided that the applicants deserving in the ‘Saraswat Community’. As per the Scheme of the Trust Deed as a whole, it was seen that the dominant object was benefits of scholarship for any members of the ‘Arur family’, in the case of female members limited to three degrees of relationships from the donee. The power to use surplus income for scholarship for deserving Members of the ‘Saraswat Community’ and the power to make advances to enable a start in life to be made by a scholar are subsidiary objects. It was held that the trust, though educational in character was for benefit of only family members and was having limited scope. In our humble opinion, the issue before their Lordships in the case of D.V. Arur (supra) was different and has not relevance to the issue before us. We, therefore, hold that the assessee is entitled for registration u/s.12AA of the Act as the assessee is imparting the ‘education’ which is a ‘charitable purpose’. - Decided in favour of assessee.
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