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2015 (5) TMI 748 - AT - Income TaxRegistration to appellant trust u/s 12AA(1)(b) denied - CIT(A) held the appellant trust has entered into the franchise agreements with Mount Litra Zee School, whereby the applicant trust has given franchisee fee to Zee Learn Ltd thus under the agreement, the school will be run under the guidelines and specification from franchisor and therefore there is no scope with the assessee to get into any charitable activity and this venture in education is purely commercial - Held that:- As relying on case of CIT Vs. Highlanders Educational Academy [2012 (12) TMI 497 - UTTARAKHAND HIGH COURT] wherein held the Assessing Officer held that the assessee is not existing solely for educational purposes, but, at the same time, it clearly and in no uncertain terms recorded a finding that the assessee is running a school with Nursery and Kindergarten classes. No other existence of the assessee was noticed. Therefore, the conclusion would be that the assessee was existing for the purpose of running the said school with Nursery with Kindergarten classes and, accordingly, was existing solely for educational purposes and not for purposes of profit. If the existence of the assessee was not for the purposes of profit, but solely for educational purpose, then the receipts of the assessee, if the same did not exceed ₹ 1 crore per annum, will be outside the purview of total income as is the mandate contained in Section 10(23C)(iiiad) of the Act. That having not been held by the Assessing Officer was reversed by the Commissioner of Appeals and the same having been affirmed by the Tribunal, there is no scope of interference. Thus the basis adopted by the CIT to decline registration was not in accordance with law and in view thereof, CIT is directed to grant the registration to appellant trust u/s 12AA(1)(b) of the Act. - Decided in favour of assessee.
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