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2018 (1) TMI 1236 - AT - Income TaxApplication for registration u/s 12AA rejected - proof of charitable activities - Held that:- Admittedly the assessee is an institution carrying on educational activities and therefore, it is a charitable institution. Though it has started its activities in the year 1998, it has filed the application for registration u/s 12AA of the Act only on 27.09.2012. As gone through the approvals of the Educational Officers and we find that in the subject portion referred to the proceedings, the name of the assessee is mentioned as “Ken-Crest High School”, whereas in the body of the letter, the name is referred to as “Ken-Crest Global High School”, Karimnagar. Further, in the proceedings dated 17.12.2011, in the subject portion itself, the school is referred to as Ken-Crest International School. Therefore, there is no difference in the schools, which have been approved and the schools run by the assessee. Further, the CCIT, Hyderabad-3, vide order dated 27.09.2013, has granted the assessee; the registration u/s 10(23)(C)(vi) which goes to prove that the Revenue is satisfied about the assessee carrying on the activities exclusively for educational purposes which is a charitable activity. Therefore, the assessee is eligible for registration u/s 12AA and the reasons mentioned by the DIT (E) are not sustainable. As regards the condition that the assessee should apply its income only in India, we find that such a condition is existing only u/s 11 and the AO is required to consider the application of income while allowing the exemption u/s 11 of the Act. Therefore, the rejection of the application for rejection on the said ground also is not sustainable. - Decided in favour of assessee
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