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2013 (11) TMI 165 - AT - Income TaxRejection of Application for Registration u/s 12AA - Compliances Were Duly Made As Per the Act - Aims and Objects of Society - Charitable in Nature OR Not - Provisions of RE Act – Validity of Activity Conducted – Held that:- The main object of the Assessee Society was education, which, undeniably, was of charitable nature, in line with the provisions of Section 2 (15) of the Act - the CIT had taken recourse to the RTE Act to reject the assessee's application - Under Section 12AA, what was required to be seen by the CIT while considering an application for grant of registration, was as to whether the object of the applicant was charitable and as to whether its activities were genuine any further - The jurisdiction and competence to examine an issue under the RTE Act obviously lies with the authorities mentioned - the CBDT Circular clearly stated that the proviso to Section 2 (15) does not apply in the case of education and where the purpose of a Trust or institution was education, it will constitute 'charitable purpose' even if it incidentally involves in carrying on of commercial activities. The order passed by the CIT was cancelled – CIT was directed to grant registration to the Society on verifying the original document of establishment of the assessee Trust - Shri Sain Ji Dharmarth Trust v.. CIT [2006 (1) TMI 455 - ITAT DELHI] and 'St. Don Bosco Educational Society v. CIT [2003 (12) TMI 306 - ITAT LUCKNOW ] and CIT vs. Surya Educational & Charitable Trust [2011 (10) TMI 47 - PUNJAB AND HARYANA HIGH COURT] - at the stage of granting or refusing registration, CIT was not required to examine as to what amount should form corpus of trust, in what manner accounts were maintained and what should appear in balance sheet - mere charging of high fees was not no ground of refusing registration, where the CIT had not doubted the objects and genuineness of the assessee's activities - u/s 12AA of the Act, the CIT was only to examine the genuineness of the objects of the Trust and not the application of income for charitable purpose, which can be examined at the stage when the Trust files its return. Disallowance of Deduction u/s 80 (G) - The matter of grant of exemption u/s 80(G) of the Act becomes consequential - Accordingly, the order passed u/s 80(G) of the Act was also cancelled and the appeal of the assessee was allowed.
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