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B.S. Public Education Society, C/o. B.S. Senior Secondary Versus Commissioner of Income-tax, Rohtak

2016 (2) TMI 887 - ITAT DELHI

Eligibility of registration u/s 12AA - Held that:- It is now well settled that at the time of grant of registration u/s 12AA, the ld. Commissioner is required only to examine the objects of the society. A bare perusal of the objects of society makes it clear that the pre-dominant object of the society is to impart education. - Decided in favour of assessee

As we have directed for registration of society u/s 12AA in terms of observations the assessee’s claim for approval u/s 80G(5)(vi) .....

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appeals were heard together and are being disposed of by a common order for the sake of convenience. ITA no. 4610/Del/2014 (U/s 12AA(1)(b)(ii): 2. Brief facts of the case are that assessee society moved application u/s 12A(1)(aa) of the I.T. Act for registration of the society along with necessary documents. 3. Ld. CIT while rejecting the assessee s application for registration has observed as under: 4. The applicant's reply does not satisfy the very essence of charity which is necessary fo .....

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and are, therefore, taxable under the head profit and gains of the business or profession. In fact, the fact is that the educational institutions run by the society in question charge whooping fees and earn systematic profit year to year to enhance its earning capacity through the acquisition of buildings & other fixed assets. 4. Ld. Commissioner further referred to the decision of Hon ble Uttrakhand High court in the case of National Institute of Aeronautical Engineering & Educational .....

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gistration u/s 12AA. 5. Ld. counsel for the assessee submitted that at the time of registration, ld. Commissioner is only required to look into the objects of trust and cannot go beyond the same. In this regard he relied on following decisions: - Saswat Chetna Educational Social Development Research Society Vs. CIT - ITA 5376/Del/2012 - Shivaji Vidya Peeth Education Society Vs. CIT - ITA no. 5377/Del/2012 - Shri Gian Ganga Vocational & Educational Society vs. CIT - 143 ITD 297 - Meritta Welf .....

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ent / semi- Government and to start the projects on public welfares . " 4. To create awareness about the social evils. " 5. To open crutches for the people in rural & urban areas. 6. To avail loans from the financial institutions / banks to construct the building of the Society . 7. The Society will promote the schemes, policies of the Government. 8. To encourage Education and Literacy and to start schools & colleges. 9. Society can work with any N.G.O.s & Government depart .....

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ciety by its constitution is required to apply its surplus if any or other income for charitable purposes only. 7. Ld. counsel further referred to page 36 of the PB, wherein clause relating to dissolution of the society is contained in which it is, inter alia, stated that no assets of any of the society shall devolve on or distributed among the members of the society on dissolution. 8. Ld. counsel further referred to page 47 of the PB, wherein the assessee has been recognized by Central Board of .....

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ocial Development Research Society (supra), after considering the decision of Hon ble High Court of Uttrakhand in the case of National Institute of Aeronautical Engineering & Educational Society (supra), has observed in para 4 as under: 4. We have considered the rival submissions and perused the material available on record. The facts in brief are that the assessee society moved application u/s 12A (1)(aa) of the Act in form no. 10A accompanied by the activity of the assessee society, copy o .....

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the assessee. The ld. Commissioner denied registration to the assessee on the ground that as per rule 17A(a) of the Income-tax Rules, 1962 the assessee was to submit the original instrument of its establishment together with the copy thereof and since the assessee has submitted only the photo copy/ certified copy of the instrument therefore the application was not complete and thus the application itself is not worth consideration for registration u/s 12AA of the Act. We find that the ld. Commi .....

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a senior Secondary school, duly registered with CBSE and Board of School Education, Haryana. We have specifically perused the objects of the society, wherein the predominant object is imparting education. Therefore, we are not satisfied with the observation of the ld. Commissioner that the assessee society is not doing any charitable activity. The another reason for denying the registration by the ld. Commissioner is the reliance placed upon the decision from Hon ble Uttrakhand High Court in th .....

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in accordance with the requirement of the section read with Rule 17A and also whether form no. 10A has been properly filled up. He may also see whether objects of the assessee society are charitable or not as was held by the Hon ble High Court in the case of Fifth Generation Education Society vs. CIT 185 ITR 634 (All.). So long as the trust has education as one of its objects it has to be accepted that the trust is having a charitable purpose as its objects and may qualify for claiming exemption .....

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the case of DIT Vs. Garden City Education Trust 191 Taxman 238 (Kar.). Even other wise registration u/s 12AA does not necessarily entitle the assessee to get the income excluded from the income of the previous year for the purposes of determination of tax liability, but it only entitle the assessee to claim such exemption, which otherwise could not be claimed in the absence of the registration. The case of the ld. Commissioner would have been on more sound footing if the assessee would not have .....

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