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2011 (3) TMI 1242 - AT - Income TaxRegistration u/s 12AA refused - amendment to the original trust deed could not be accepted where original name and address of the trust was changed without seeking prior clearance from the Income-tax Department - Held that:- None of the sections 11, 12 and 13 says any provision which says that an assessee cannot make any changes of the like mentioned, without getting prior clearance from the Income-tax Department. Related rules 17A, 17B and 17C of the Income-tax Rules also do not mention anywhere that an assessee has to get any previous sanction from the Income-tax Department before effecting any such amendments. 25 persons had initially invested in land by contributing entire money in cash and further brought in a sum of Rs. 25 lakhs - many of the trustees did not have taxable income and investments made by them were questionable in their respective hands - Held that:- Act specifies a methodology where anonymous receipts are received by a trust. Section 115BBC of the Act specify a method for taxing anonymous donations. Thus even if we consider that the trustees did not have the wherewithal to contribute the sums mentioned and even if we treat such donations as coming from anonymous sources, it would not be reason to deny registration under section 12AA of the Act. Trust was charging exorbitant amounts as school fees and was spending only a small part towards the salary of the teachers and other related expenses - Held that:- There is no finding by CIT(A) that any excess or surplus was used or diverted, for any purpose other than for educational needs. On the other hand, there is a clear finding that the funds were used for construction of the building of the school. Where education is itself is charitable under section 2(15) of the Act, construction of the building to carry on such education, or in other words spending money for raising necessary infrastructure would also be very much charitable. Trust was running hostel and transportation services not part of its educational activity - Held that:- A school has to have a hostel and a mode of transporting the students. Surplus if any generated, as long as it was used for educational objects would not make the institution non-charitable. In favour of assessee.
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