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2016 (4) TMI 1357 - HC - Income TaxExemption u/s 11 denied - assessee trust was not carrying on educational activities falling within the definition of education as contemplated under Section 2(15) - HELD THAT:- The issue whether or not the educational activities carried out by the Trust in terms of objects did not satisfy Section 2(15) of the Act was not examined by the Tribunal. This in view of the decision of ACIT Vs. Surat City Gymkhana [2008 (4) TMI 16 - SUPREME COURT] to the effect that once registration is granted a trust under Section 12A of the Act then it is not open to the Assessing Officer while examining compliance with Section 11 of the Act to revisit objects of the assessee and to hold contrary to the registration granted. Thus the nature of activity in terms of Section 2(15) of the Act was not verified nor considered by the Tribunal. In the above view, question (a) as posed does not arise out of the order of the Tribunal and thus, it is not entertained. Whether Tribunal was justified in holding that the AO cannot examine the objects to the Society as long as there is valid registration u/s 12A granted to the assessee? - The impugned order of the Tribunal has followed the decision of the Supreme Court in Surat City Gymkhana (supra) wherein it has been held that once the trust has received registration under Section 12A of the Act and that registration is subsisting then it is not open to the Assessing Officer to re-examine the objects of the trust to take a view contrary to the view taken while granting registration under Section 12A of the Act. The Tribunal observed that the only examination to be carried out by the Assessing Officer is whether or not the provisions of Section 11 have been complied with by the assessee for purpose of extending benefit of the exemption. As question (b) stands concluded by the judgment of the Apex Court in Surat City Gymkhana (supra). Therefore, question (b) as posed does not give any rise to any substantial question of law.
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