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2020 (2) TMI 580 - HC - Income TaxExemption u/s 11 - grant of registration u/s 12AA - Charitable activity u/s 2(15) - HELD THAT:- The finding recorded by the Tribunal is not disputed that the vehicles added were school buses. Even if transportation was not specifically mentioned in the aims and objects of the society, the same will not make any difference. Carrying children to the schools and back home is an essential for running schools especially if the schools are in rural areas. The safety of students is of utmost importance. There is another aspect of the matter that purchase of school buses will not amount to amassing assets, rather it is in furtherance of the object of the society to provide quality education. The funds were utilised for education purposes. There is no challenge to the finding of the Tribunal that lower salary paid was not at the cost of quality of education, moreover this itself cannot be a consideration for refusing registration under Section 12AA of the Act. At this juncture, it would be pertinent to note that merely the fact that the society was earlier registered under Section 10(23C) of the Act cannot be taken as an adverse ground for consideration of the application for registration under Section 12AA of the Act. It is for the society to take prudent decision for itself as to which section would be more beneficial. The objects of the society were not doubted by the CIT except for the objections raised above. The denial was merely on surmises and conjectures. There is no error in the order of the Tribunal directing grant of registration to the society. However, it would be needless to state that in case the revenue subsequently comes to the conclusion that the activities of the society are not for charitable purposes, it would always be at liberty to initiate action in accordance with law including invoking of sub-section (3) of Section 12AA
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