TMI Blog2011 (6) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... public and especially the poor section of the public. Running schools by collecting huge amounts of fees with five star facilities cannot be treated as a charitable activity only on the ground that the business carried on by such institutions is the business of education. The object of the assessee-trust is to establish a number of educational institutions in a brand name and run it on commercial lines. This cannot be a charitable activity. Therefore,the Director of Income-tax (Exemptions) has rightly rejected the application filed by the assessee for registration under section 12AA. Against assessee. - ITA NO. 1817 (MAD.) OF 2010 - - - Dated:- 20-6-2011 - DR. SHRI O.K. NARAYANAN, AND SHRI HARI OM MARATHA, JJ. Represented By: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accountant, appearing for the assessee and Shri K. E. B. Rengarajan, learned junior standing counsel appearing for the Revenue. 6. In clause 11 of the trust deed, the trustees are authorised to fix the fees or charges from the students. In deciding such amounts to be collected, the assessee is supposed to consider the cost of running of the institutions and also funds necessary for future development. Even though it is stated in the trust deed that fixing of the fees will not include any amount of profit, this freedom on costing and price fixation granted to the trustees of the assessee-trust can be used in such a manner to subserve the expansion of the schools established by the assessee-trust rather than concentrating on the objects of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or availing of the benefits of sections 11 and 12 of the Income-tax Act, 1961, that an assessee must be carrying on charitable activities. The inclusive definition of charitable purpose states among other things, relief of the poor, education, medical relief, etc. as in the nature of charitable purpose. The definition clearly shows that carrying on education activities by itself is not a charitable purpose. The concept of charitable purpose may be manifested in different forms like relief of the poor, education, medical relief, etc., but a charitable purpose should always take care of the welfare and interest of the public and especially the poor section of the public. Running schools by collecting huge amounts of fees with five star facili ..... X X X X Extracts X X X X X X X X Extracts X X X X
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