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2014 (7) TMI 379 - AT - Income TaxRejection of application u/s 12A of the Act - Genuineness and creditworthiness of donors not shown – No evidence for not deriving any benefit covered u/s 13(3) of the Act – Held that:- For the purpose of registration u/s 12A, the CIT has to satisfy himself about the object of the trust or the institution and the genuineness of its activities - the object of the assessee is the running of educational institution - the trust or institution which is carrying on educational activities will fall within the ambit of charitable purpose under Section 2(15) even if it incidentally involves the carrying on of commercial activities. The allegation of the Revenue that the assessee is charging heavy fees or the fees is similar to being charged by commercial colleges, has neither been factually proved to be correct nor can be a basis legally in view of the Board’s Circular for denying the registration of trust u/s 12A - the object of the trust is education and the assessee is running two educational institutions - one, for engineering courses and another, for B.Ed courses - the object of the trust is education which is charitable and the assessee is genuinely pursuing the same - it has duly fulfilled the conditions necessary for registration u/s 12AA - the verification of the donation or verification of violation of Section 13(3) is not the relevant consideration for registration of trust u/s 12AA – thus, the order of the CIT is set aside – Decided in favour of Assessee.
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