TMI Blog2011 (8) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... tion can be taken only if the donations are made involuntarily - Commissioner of Income-tax has no case that the students had donated out of compulsion or force - Therefore it is to be presumed that the students who sought admission in the institutions run by the assessee had given the donations voluntarily - So, for the limited purpose of Income-tax Act, the donations collected by the assessee society are to be treated as voluntarily contributions - Voluntary contributions are in the nature of income of a charitable society - There is nothing on record to show that the assessee has applied its funds for non charitable or religious purposes - Find that apart from the personal observations made by the Commissioner of Income-tax, there are no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Partly aided institution is Umamaheswaranar Arts College. Self financing institutions are Umamaheswaranar Teacher Training School, Palanisamy ITI, Umamaheswarnar B.Ed. College and S.R. Nursery School. 3. There was a survey carried out on 4-8-2010 in the backdrop of some allegations levelled against the assessee society. Thereupon the assessee society sought for getting registered under section 12AA of the Act. 4. But the Commissioner of Income-tax found that the assessee has not furnished audited accounts in Form 10B and the detailed accounts of the above stated eight institutions. The Commissioner of Income-tax has noted a number of defects in the accounts such as transfer of surplus funds from one institution to another, especially to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f all let us deal with the most vociferous objection raised by the Commissioner of Income-tax against the assessee society. The objection of the Commissioner of Income-tax is that the assessee society has been established with the sole object of promoting the interests of Tamilians. It is the view of the Commissioner of Income-tax that the society was established in 1911 and during those days of pre-independence, such activities could have been justified, but, after independence, India being one nation, such sectarian activities could not be treated as charitable in nature as they ultimately go against the spirit of national unity and integration. 8. We do not understand what made the Commissioner of Income-tax to think so emotionally on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Members of a trade association are public. Public does not mean the entire population of all the States in India. 9. Feeling of being Tamilian is not anti-national. As far as Tamilians are concerned, Tamil is their mother tongue. As far as Punjabis are concerned Punjabi is their mother tongue. Therefore, to preach Tamil or Punjabi and to promote Tamil or Punjabi culture or to help Tamil or Punjabi people do not become anti national or go against the principles of national integration. The salient feature of Indian society is "Unity in Diversity". 10. We are of the view that Tamilians as a group amounts to public and therefore lawful activities undertaken by an institution for the overall prosperity of Tamilians should be treated as char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case, we find that apart from the personal observations made by the Commissioner of Income-tax, there are no legally sustainable reasons to deny registration to the society under section 12AA of the Income-tax Act, 1961. 14. We find that the assessee is eligible for registration under section 12AA. As the society has been established almost a century ago and has been carrying on educational activities, the assessee should be granted registration retrospectively. If any formalities like auditing, presentation of accounts and filing forms are called for, the assessee may be given a reasonable opportunity to comply with those procedural requirements. Accordingly, the Commissioner of Income-tax is directed to grant retrospective registratio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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