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2019 (6) TMI 583 - AT - Income TaxRegistration u/s 12AA - activity the assessee involved is obtaining a franchisee of Zee Learn Ltd for education - activity are in commercial nature OR Charitable - HELD THAT:- The trust is operating on a commercial basis in conducting of its affairs which consists mainly running of “Kid Zee”. There is no provision for any type of free or concessional education to the poor and needy students. Rather the clauses in the franchisee Agreement makes it binding on the trust not to offer any discounts or concessions as otherwise provided in the Agreement. As per the Clause C & D of the Agreement above the trust cannot even grant credit to the needy students in case of financial crisis and the interest is liable to be charged on day to day basis. Such type of activity cannot be considered as charitable activity. After going to the Trust Deeds, Franchisee Agreement as well as the provisions of Section 12A and Section 12AA as well as the impugned order passed by the Ld. CIT(E), we are of the considered opinion that according to Section 12AA, the Commissioner, on receipt of application for registration of trust or institution shall have to examine the documentary evidence filed by the assessee along with the application for granting registration. Commissioner can call for any type of documentary evidence or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of the activities of the trust or institution. If he has any doubt in his mind then he may also make such inquiries as he may deem necessary. Before granting the registration to any trust or institution, Commissioner should be satisfied about the genuineness of activities of the trust or institution, as the case may be. The trust in the instant case has not produced any evidence to the satisfaction of the CIT (E) about its real charitable character. On the other hand the CIT (E) could prove cogently the non charitable and commercial nature of the work undertaken by the assessee trust. In view of the foregoing discussion no interference is required in the impugned order. Accordingly we uphold the order of the CIT(E). - Decided against assessee.
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