TMI Blog2012 (1) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... o three degrees of relationships from the donee. The power to use surplus income for scholarship for deserving Members of the ‘Saraswat Community’ and the power to make advances to enable a start in life to be made by a scholar are subsidiary objects. It was held that the trust, though educational in character was for benefit of only family members and was having limited scope. In our humble opinion, the issue before their Lordships in the case of D.V. Arur (supra) was different and has not relevance to the issue before us. We, therefore, hold that the assessee is entitled for registration u/s.12AA of the Act as the assessee is imparting the ‘education’ which is a ‘charitable purpose’. - Decided in favour of assessee. - ITA No.6214/Mum/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of business of education. He also observed that the assessee is running and maintaining an elite school which has a commercial activity and does not have character of charity involved in it. He also relied on the decision of the Hon ble High Court of Bombay in the case of Arur D.V. vs. CIT 13 ITR 465. The opinion of the Ld. DIT (Exmt) running the elite school cannot be treated as a charitable object as the same is run for the benefit of few persons. The Ld. DIT (Exmt) rejected the application filed by the assessee for the registration by holding that the assessee trust is running and maintaining elite school which does not fall within the definition of charitable purpose, as defined in section 2(15) of the Income-tax Act. Now the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the assesseeschool. The identical issue has been considered by the ITAT, Mumbai Bench in the case of Indo-American Society (supra) and while interpreting the definition of the charitable purpose given in sec.2(15) of the Act and has held as under:- 10. .. To serve a charitable purpose, it is not sine qua non that the object should be to benefit the whole of mankind or even all persons living in a particular country or province. It is sufficient if the intention is to benefit a section of the public as distinguished from specified individuals. The section of the community sought to be benefited must undoubtedly be sufficiently defined and identifiable. It is nowhere laid down that to enable the benefit of section 11 of the Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. The Ld. DIT (Exmt) is relied on the decision of the Hon ble jurisdictional High Court in the case of Arur (D.V.) (supra). The decision in the said case is rendered in the Income-tax Act, 1922. It was claimed by the assessee that the assessee trust was educational in character and, therefore, was of the charitable purpose. As per the Trust Deed of the said assessee, it was permissible to award Scholarship outside the Arur Family and also provided that the applicants deserving in the Saraswat Community . As per the Scheme of the Trust Deed as a whole, it was seen that the dominant object was benefits of scholarship for any members of the Arur family , in the case of female members limited to three degrees of relationships from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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