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2014 (6) TMI 1004 - AT - Income TaxGrant of registration u/s 12AA - charitable activity - scope of section 2(15) - Held that:- No doubt, applicability of the provisions of Sec. 13(1)(c) cannot be looked into at the time of registration but CIT is bound to look into whether the objects of the trust/institution are charitable/religious or not. We do not find any irregularity or infirmity so far as jurisdiction of CIT is concerned in ascertaining the purpose of the object for which the institution has been established. We have also examined the submission of the ld. AR that the Assessee is engaged in activity of education and rendering education in the game of cricket and therefore, the proviso to Sec. 2(15) will not be applicable in the case of the Assessee. In our opinion, this submission of the Assessee, keeping in view the objects of the Assessee, does not have any leg to stand in view of the decision of the Hon'ble Supreme Court in the case of Sole Trustee, Loka Sikhshana Trust‟s case [1975 (8) TMI 1 - SUPREME Court] It is not the case of the Assessee that it is running a normal schooling for sports. Therefore, we hold that the Assessee‟s activities do not fall within the term “education”. CIT has used material behind the back of the Assessee for rejecting the registration and has not given him proper opportunity, we, therefore, with our above observation set aside the order of CIT and restore this issue to the file of CIT with the direction that the CIT shall look into the matter of registration of the institution afresh after giving proper and sufficient opportunity to the Assessee to prove that the objects for which the Assessee institution is created are genuine and are for charitable purposes. We may clarify that while considering the application of the Assessee for registration, the CIT should not apply proviso to Sec. 2(15) retrospectively. If he so choses that in view of the proviso inserted w.e.f. 1.4.2009 the activities carried on by the Assessee no more remains charitable as per the amended definition of Sec. 2(15), he may pass an order u/s 154 rectifying his order withdrawing the registration of the Assessee in case he grants registration to the Assessee w.e.f. 1.4.2009 by passing a speaking order. Appeal of the Assessee is statistically allowed.
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