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TMI Blog2012 (4) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... led by the assessee for approval under section 80G of the Income-tax Act, 1961. 2. The first set of appeals in ITA Nos.289 and 290(Mds)/2011 are directed against the orders of the Director of Income-tax (Exemptions) at Chennai, dated 29-1-2010. In these orders the Director of Income-tax (Exemptions) has rejected the application of the assessee for registration under section 12AA and petition for approval under section 80G on the ground that the assessee is raising its funds by bringing out publications, which falls within the amended provisions of section 2(15) and so also 'raising funds by other ways' is too vague and wide expression. The other set of appeals in ITA Nos. 288 and 291(Mds)/2011 arise out of the orders of the Directo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of non computer courses, Manonmaniam Sundaranar University gives 35% of the collection to the assessee trust and takes away 65% of the collection for itself. In the case of computer courses, the assessee gets 57.5% of the collection and the University appropriates 42.5% of the collection. 5. In the case of Bharathiar University, the assessee gets 40% and the University gets 60%. 6. The Director of Income-tax (Exemptions) found that conducting courses and programmes of the Directorate of Distance and Continuing Education and running study centres for and on behalf of the University and sharing the fees collected from the students are in the nature of commercial activities and cannot be considered as charitable in nature. The Director of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as on facts. 4. The Director further failed to appreciate that the assessee-trust is running schools which is within the scope and sweep of the objects of the Trust and hence denying registration u/s 12AA and approval for 80G is unjustifiable. 5. The Director further failed to appreciate the enquiries made by him was relatable to the realm of assessment, that his enquiry ought to have been addressed to the actual existence of the institution and the activities conducted therein and the threshold condition having been satisfied in this given case, he ought to have granted registration and approval. 6. The Director further failed to appreciate the activities of the assessee-trust falls not only within th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpose per se. It only states that charitable purpose includes those activities as well. It follows that education per se will not be a charitable activity unless the activities are carried out as a charitable endeavor. An assessee carrying on education on commercial lines cannot claim the status of a charitable institution only for the reason that the assessee is engaged in educational activities. The litmus test of a charitable institution engaged in any of the fields like education or medical relief is that the assessee is basically carrying on its activities as a charitable dedication. The benevolence of charity must reflect in the activities carried on by an assessee and what is basically charity? Charity is so exhaustive to be defined, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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