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2015 (8) TMI 183 - HC - Income TaxRegistration under Section 12AA declined - Whether the educational society run by the particular community is debarred for registration under Section 12AA even if it is carrying out charitable activities which benefit the community at large including persons belonging to other religion? - Held that:- Memorandum of Association and the objective of the trust have not been into consideration in a proper perspective. A perusal of the same would go on to show that the purpose of association apart from the imparting of education to the children of a particular religion was also to provide sound education to persons belonging to other communities regardless of caste, creed, colour or distinction of any kind in order to produce enlightened and responsible citizens for the country. The object also further provided that each child was to discover and develop his/her potential as an individual by encouraging enquiry and creativity and to provide a well rounded education and high academic standard and to develop responsible citizenship in the students and to encourage appreciation of national and cultural heritage. A perusal of the information supplied in the reply to the show cause notice would go on to show that less than 10% of the students of a particular community were studying in the last year and for the earlier period, the percentage was even less. In such circumstances, the reasoning given that the appellant was only imparting education to a particular religion, sect or group was not based on any sound footing. The objects of the society have already been reproduced above which go on to show that society was to provide sound education to persons regardless of caste, creed, colour or distinction of any kind and help the children to and discover and develop potential as well as individuals by providing a well-rounded education. The charitable purpose under Section 2(15) of the Act provides for relief of the poor pertaining to education and the advancement of any other object of general public utility. The purpose to provide education to the children would fall very much within the charitable purpose and predominant purpose of the appellant has to be seen. See Commissioner of Income-Tax Vs. Jodhpur Chartered Accountants Society [2002 (4) TMI 28 - RAJASTHAN High Court] and Ahmedabad Rana Caste Association Vs. CIT [1971 (9) TMI 8 - SUPREME Court] - Decided in favour of assessee.
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