TMI Blog2010 (8) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration u/s 12AA and exemption u/s 80. - IT APPEAL NOS. 758 AND 759 (DELHI) of 2010 - - - Dated:- 31-8-2010 - C.L. SETHI, JUDICIAL MEMBER J, AND SHAMIM YAHYA, ACCOUNTANT MEMBER J, Ajay Vohra, Rohit Jain and Rohit Garg for the Appellant. P.K. Gupta for the Respondent. ORDER Shamim Yahya, Accountant Member. These appeals by the assessee are directed against the orders dated 21-12-2009 of the Commissioner of Income-tax, Faridabad rejecting the assessee s application for registration under section 12AA of the Income-tax Act and registration under section 80G of the Income-tax Act respectively. 2. The assessee in this case is a company incorporated on 18-3-2008 under section 25 of the Companies Act, 1956. Assessee filed application for registration under section 12A(1)( a ) on26-6-2009. 3. The Commissioner of Income-tax, Faridabad vide order dated21-12-2009 rejected the application for registration. In this connection, he referred to the main objects to be pursued by the company, as per its memorandum of association and the objects incidentally or ancillary to the attaintment of the above mains objects. Referring to the three objects i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sociation is to be registered as a company under the Companies Act, 1956, for promoting objects of the nature specified in section 25, sub-section (1), Clause ( a ) of the said Act and that it intends to apply its profits, if any, or other income in promoting its objects and to prohibit the payment of any dividend to its members : Now therefore, in exercise of the powers conferred by section 25 of the said Act, read with the Notification of the Government of India, Ministry of Law, Justice and Company Affairs, Department of Company Affairs No. GSR 288(E), dated 31-5-1991, I, Dhan Raj, Regional Director, Ministry of Corproate Affairs at Noida hereby grant this Licence, directing that the said association be registered as a company with limited liability without the addition of the word Limited or the words Private Limited to its name, subject to the following conditions namely : (1) that the said company shall in all respects be subject to and governed by the conditions and provisions contained in its memorandum of association; (2) that the income and property of the said company whensoever derived, shall be applied solely for the promotion of the objects as set forth in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lishing, running institutes including primary, secondary senior, graduate, postgraduate, technical, vocational, training and management level schools, colleges, institutes. 2. No object of the company will be carried out without obtaining prior approval/No Objection Certificate from the concerned authority wherever required. 3. None of the objects of the company will be carried out on commercial basis. 6.1 The above clearly reveals the predominant and the sole object for which the assessee is to undertake educational activities which involved setting up and running of schools, colleges, institutes for conducting various courses and providing instructions/ teaching and training in higher education. 6.2 Section 11 of the Act exempts income of a person holding property under trust wholly for charitable or religious purpose. In order to claim exemption under the said exemption the assessee has to get registration under section 12A by following the procedure prescribed under section 12AA of the Act. A perusal of the relevant section shows that for getting registration under section 12A/12AA in order to claim exemption under section 11 of the Act. Following conditions have t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... totally ignored by the respondent No. 1 is that the petitioner Foundation is a deemed company under section 25 of the Companies Act. This section reads as under : 25. Power to dispense with Limited in name of charitable or other company. (1) where it proved to the satisfaction of the Central Government that an association : ( a ) Is about to be formed as a limited company for promoting commerce, art, science, religion, charity or any other useful object, and ( b ) Intends to apply its profits, if any, or other income in promoting its objects, and to prohibit the payment of any dividend to its members, the Central Government may be license, direct that the association may be registered as a company with limited liability, without the addition to its name of the would limited or the words private limited .... 24. Thus, the status which is granted by the Government itself is the recognition of the fact that the petitioner Foundation is essentially established for the purpose of education and/or for the advancement of any other project (object) of general public utility. [Emphasis supplied] 6.5 From the above discussion, it is evident that sole objects of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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