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2017 (12) TMI 793 - AT - Income TaxGrant of registration u/s 12A denied - appellant is not running the educational institution - Held that:- The income and expenditure account of the school shows excess of expenditure over income, of ₹ 4,92,417/-. As per the balance sheet (APB 19-22), the investment in fixed assets has been shown at ₹ 9.20 crore. The investment in purchase of land was of ₹ 22,15,200/- in A.Y. 2011-12. The investment over construction of school building was shown at ₹ 9.98 crore. The returns filed by the assessee have attracted no adverse remark from the Department. In fact, the ld. CIT has himself observed the assessee to have made expenditure after obtaining unsecured loans of more than ₹ 10 crore. This itself goes to show that the expenditure in establishing and running the school was laid out by the assessee Society. The ld. CIT has not made any observation that any expenditure was made by G.D. Goenka. Nothing has been brought on record to show that the assessee Society is working/is to work under G.D. Goenka, or that there is any interference of G.D. Goenka in the affairs of the school run by the assessee Society. There is nothing on record to show that any part of the fund has been utilized by the assessee Society for any profit/gain. Nothing has also been brought on record to show that funds were diverted to either the trustees, or their relatives. There is no violation of section 13 of the I.T. Act, as such. In ‘S.R.M. M. CT. M. Tiruppani Trust vs. CIT’(1998 (2) TMI 3 - SUPREME Court ), it has been held that money having been spent on acquisition of assets for educational institution amounts to application of funds for charitable purposes. - Decided in favour of assessee.
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