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2015 (9) TMI 1434 - AT - Income TaxRegistration u/s 12AA rejected - Held that:- Application of the assessee for registration under section 12A of the Act has been rightly rejected by learned CIT. If the objects and real situation is analysed, the objects are not of charitable nature. Almost in every activity there is a scent of commercialization/profit motive but in the charitable institution no profit motive is involved and the service is done mainly with the intent of social/religious upliftment of the masses in general. We agree with the conclusion of the CIT, as contended by learned CIT-Departmental Representative, that a charitable institution provides services for charitable purposes free of cost and for no gain and are for the benefit of public at large. As we have discussed in the preceding para, the assessee acquires land at nominal rates and after developing the same, the same land (is sold) on high profit which cannot be said to be a charitable activity. Even just for argument sake, under the present facts, if registration is granted, then every private colonizer will claim charity. See PUDA Versus CIT [2006 (6) TMI 141 - ITAT CHANDIGARH-B ] - Decided against assessee.
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