Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (5) TMI 920 - AT - Income TaxCancellation of registration u/s 12AA of the Act Held that:- Registration granted to charitable trust cannot be cancelled, unless and until conditions laid down u/s 12AA are violated Section 12AA (3) stipulates that if the commissioner is satisfied, that the activities of the society are not genuine or not being carried out in accordance with the objects of the society, he shall pass an order in writing for cancelling the registration of the trust - there is no finding by the CIT that admission to students for the various courses conducted by the society are only provided for a particular caste -There is also no finding by the CIT that the activities of the trust/society are not genuine and they are not carried out in accordance with the objects of the trust - if there is some surplus derived from the activities of the institutions that does not mean that the objects of the trust are not charitable. CIT has also raised adverse inference for advertisements made by the society in the leading newspapers and other Medias in order to attract students Relying upon CIT v. Sarvodaya Ilakkiya Pannai [2012 (2) TMI 160 - Madras High Court] and Circular No.11 of 2008 dated 19th December, 2008 - The newly inserted proviso to section 2(15) will not apply in respect of the first three limbs of sec 2(15), i.e. relief of the poor, education or medical relief - where the purpose of a trust or institution is relief of the poor, education or medical relief, it will constitute 'charitable purpose' even if it incidentally involves the carrying on of commercial activities - the amended provisions of Section 2(15) of the Act clearly provide that charity includes education and the applicability of the proviso to the section excludes education thus, the order of the CIT is set aside and the registration granted earlier by the Revenue is restored Decided in favour of Assessee.
|