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TMI Blog2014 (3) TMI 769X X X X Extracts X X X X X X X X Extracts X X X X ..... to impart education upto 10th Standard. The assessee filed its return of income declaring total income of Rs.NIL on 06-09-2010. The Assessing Officer scrutinised the return of income. He noted that the Chief Commissioner of Income Tax, Nashik has rejected the application of the assessee for exemption u/s.10(23C) (iiiad) of the Act on the ground that the trust, which is running schools, has received donations from various students, which is in the nature of capitation fees. The Assessing Officer, therefore, was of the view that the assessee trust cannot be said to be existing solely for educational purpose. As such the assessee was not found to be eligible for accumulation of income and the income of the Trust was not liable for deduction/e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee further argued that at the time of framing the assessment for A.Y. 2009-10 the certificate of registration u/s.12A was in force and till today it is in force. When the trust holds the certificate of registration u/s.12A it is entitled to get the exemption u/s.11 irrespective of the fact that whether it is the education trust or otherwise. Relying on various decisions it was argued that the disallowance of Rs.57,34,777/- made by the Assessing Officer should be deleted. 4. Based on the arguments advanced by the assessee the Ld.CIT(A) deleted the addition by observing as under : "5.2 I have carefully considered the facts of the case, the assessment order and the rival contentions. On perusal it is noticed that the appellant is regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oes not hamper any applicability of the provisions of section 11 when the trust is registered u/s 12A and the object of the trust is charitable in nature and not for the purpose of the profit. This view is fortified by the Allahabad High Court in the case of Bar Council of Uttar Pradesh vs. Commissioner of Income Tax (supra) wherein it was held that Section 10(23A) and Section 11 are not mutually exclusive and can operated simultaneously. The appellant is a professional association and also an institution for charitable purpose and is eligible to claim exemption both under s. 10(23A) and s. 11. 5.2.2 In view of the above facts and in the circumstances of the case, I am of the considered opinion that the rejection of the application u/s 10( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o considered the various decisions cited before us. We find the assessee in the instant case has obtained the certificate of registration u/s.12A as a Charitable Trust vide Lr.No. NSK/tech/12A/89-90/4 dated 24-04-1989. We find the Assessing Officer disallowed the surplus of Rs.57,34,777/- on the ground that the CCIT, Nashik has rejected the application of the assessee for exemption u/s.10(23C) (iiiad) of the Act on the ground that the trust, which is running schools, has received donations from various students which is in the nature of capital fee. The assessee trust in the instant case has got the certificate of exemption u/s.80G vide order No. NSK/CITI/ 80G(5) dated 15/06/2010. The registration granted u/s.12A is in force for the impugne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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