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2018 (9) TMI 954 - AT - Income TaxDenial of registration u/s. 12AA - assessee, a franchisee of a corporate entity, is running an educational institution in pursuance to object clause 4(a) of it’s MOA - Revenue’s prime objection is that the assessee is running its’ school (educational institution) on commercial lines with a view/object to earn profit, and its’ activities cannot therefore be regarded as driven by the purpose of providing ‘education’ - Held that:- We are conscious that ‘education’ is a ‘charitable purpose’ per se, so that the assessee’s activities, to be regarded as in satisfaction thereof, do not necessarily have to be targeted to serve or educate the poor. However, we have to necessarily read the objects as they are, being the premise with which the society has been established, exhibiting the intention of its’ founder/promoter/s, the stated purpose of its’ existence. In view of the foregoing, only consider it proper to restore the matter back to the file of the competent authority to allow the assessee an opportunity to exhibit its’ activities as being undertaken toward and in satisfaction of its stated object/s, which no doubt constitute a charitable purpose under the Act. Assessee’s appeal is allowed for statistical purposes.
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