TMI Blog2011 (10) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... he institution is not carrying its activities in furtherance of its object - mere making of profit would not be ground to deny registration once the objects of the society are for charitable purpose - conditions laid down Rule 11AA of the Income Tax Rules, 1962 have also been complied with and held that the Trust is eligible for registration under Section 80G(5)(vi) - Decided in favor of assessee. - ITA NO. 759 OF 2010 (O&M) - - - Dated:- 3-10-2011 - HEMANT GUPTA AND G.S. SANDHAWALIA, JJ. Inderpreet Singh for the Appellant. JUDGMENT G.S. Sandhawalia, J. - Civil Misc. Nos.25090-91-CII of 2010 For the reasons mentioned in the applications, delay in refiling as well in filing the appeal is condoned. 2. The Civil Mis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17,1923 with the Registrar, Joint Stock Companies, Punjab at Lahore for the purpose of spreading education without any distinction of caste and creed by establishing educational institutions. Thereafter, appellant was registered on 29.9.1980 under the Societies Registration Act, 1860. The Tribunal also noticed that vide order dated 27.6.2008, the Commissioner of Income Tax has held that the assessee is entitled for registration under Section 12AA of the Act with effect from 29.9.1980 and has been running educational institutions since then and merely if the surplus arises as a result of charitable activities, it cannot be held that appellant is not a charitable institution. 5. The Tribunal has further held that as per provisions under S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12AA of the Income Tax Act is not includible in its total income for the purpose of approval u/s 80G(5)(vi) of the Income Tax Act when it regularly charges fee for imparting education in educational institutions and does not show the income therefrom u/s 11 (4A) of the Income Tax Act i.e. income from an incidental business? (iii) Whether the Hon'ble ITAT was justified in law in directing to the CIT to allow approval u/s 80G(5)(vi) of the Income Tax ignoring the findings recorded by the CIT on the basis of the documents called for u/s 11AA of the Income Tax Act that applicant was having incomes of the nature not specified u/s 11 thus includible in its total income, maintaining no dissolution clause in Memorandum Articles of Associ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itution or fund, he shall record such satisfaction in writing and grant approval to the institution or fund specifying the assessment year or years for which the approval is valid. (5) Where the Commissioner is satisfied that one or more of the conditions laid down in clauses (i) to (v) of sub-section (5) of section 80G are not fulfilled, he shall reject the application for approval after recording the reasons for such rejection in writing. Provided that no order of rejection of an application shall be passed without giving the institution or fund an opportunity of being heard. (6) The time limit within which the Commissioner shall pass an order either granting the approval or rejecting the application shall not exceed six months ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry for the said purpose relates to whether the applicant is registered under section 12A; whether it is a trust wholly for charitable purposes and whether the income received by it is liable to be considered under section 11 of the Act. The enquiry whether at the end of the previous year, the donor will be able to sustain a claim because of non-fulfilment of some conditions by him would depend at the close of the relevant previous year, as it is not possible to predicate these conditions in praesenti when the donation is made. 9. Whether mere making of profit would be ground to deny registration once the objects of the society are for charitable purpose and especially in the present case where five educational institutions are being run ..... X X X X Extracts X X X X X X X X Extracts X X X X
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