Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 368 - AT - Income TaxExemption u/s 11 - application for registration u/s.12AA rejected - Activities of the trust was not carried out with charitable object but with profit motive as activities of imparting education with primary object of earning profit cannot be said to be charitable activity and Building is being constructed in leasehold land which is owned by one of the Managing Trustee - whether or not the ld. CIT was justified in rejecting registration u/s.12AA of the Act by applying the proviso to Section 2(15) ? - HELD THAT:- Poviso to Section 2(15) of the Act is applicable only to organization which is for advancement of any other object of general public utility. The proviso cannot be applied to an organization which is engaged in the first three limbs of the definition of charitable activity i.e. Relief to the poor, education and medical relief. Admittedly, assessee before us is perusing activity of education. Therefore proviso to Section 2(15) of the Act cannot be applied to the assessee trust.This position is made clear even by the CBDT Circular No.11/2008,dated 19.12.2008 Reliance placed by the ld. CIT in the case of Queens Educational Society [2007 (9) TMI 347 - UTTARAKHAND HIGH COURT] was over ruled by Hon'ble Supreme Court[2015 (3) TMI 619 - SUPREME COURT] - In the light of this factual position, we are of the considered opinion that the proviso to Section 2(15) of the Act is not applicable to trust. In the circumstances, we direct the ld. CIT to grant registration u/s.12AA of the Act. - Decided in favour of assessee.
|