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2014 (8) TMI 832 - AT - Income TaxRejection of application of registration u/s 12A – Approval u/s 80G – Charitable purpose u/s 2(15) - Held that:- Medical relief, education, relief to the poor and advancement of any other object of general public utility will come within the ambit of ‘charitable purpose’ - the DIT(E) cannot lay stress upon the objects incidental or ancillary to main objects to assume that the intention of the assessee is commercial in nature – Relying upon ICAI Accounting Research Foundation Vs. DCIT [2009 (8) TMI 61 - HIGH COURT OF DELHI] - for achieving the main charitable object if an institution carries on some commercial activity and generate profit there from, such activities cannot be considered to be the business activity with profit motive so long as the profit earned is utilized for the purpose of achieving the charitable object - the DIT(E) cannot come to a conclusion merely on assumptions and presumptions that the assessee has violated or will violate the provisions contained in section 11 of the Act. DIT(E) at the time of grant of registration u/s 12A cannot step into the shoes of the AO to examine whether the assessee has carried out any activity with profit motive or there is violation of conditions laid down u/s 11 of the Act - DIT(E) has not found any adverse material to show that the main objects of the assessee are not of charitable nature or its activities are not genuine - the question of exemptions under section 11 and 12 would only come at the time when the trust/institution is assessed to tax –thus, DIT(E) was not correct in rejecting assessee’s application u/s 12A of the Act - DIT(E) is directed to grant registration u/s 12A of the Act to the appellant institution and also consider granting approval u/s 80G(5) of the Act subject to fulfillment of conditions laid down under clause (i) to (v) of section 80G(5) of the Act – Decided in favour of Assessee.
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