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TMI Blog2016 (11) TMI 1361X X X X Extracts X X X X X X X X Extracts X X X X ..... A and approval u/s. 80G of the IT Act by wrongly holding that the aims and objects of the Society are not charitable and activities conducted by the appellant are not genuine. 2. Since both the appeals are interconnected and were heard together, therefore, the same are being decided by this consolidated order for the sake of convenience and brevity. 3. The brief facts of the case are that the appellant filed applications on 23.07.2013 in Form No. 10A and 10G for seeking registration u/s. 12A and 80G of the Act respectively along with copy of Society Registration certificate dated 01.07.1998 issued by Registrar of Firms & Societies, copy of memorandum of society, income & expenditure account, balance sheet along with audit reports in form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... status of being-charitable as is required in view of section 2(15) read with section 12AA of the Income Tax Act, 1961. The provisions of sec 11 and 12 do not envisage that a charitable institution shall provide charity by charging fees from public at large. The fees received are outside the scope of sec 11 and 12 and shall, therefore, be taxable. Fees imply direct involvement of consideration for the services rendered. Fees can not be voluntary and are, therefore, taxable under the head profit and gains of the business or profession. The charging of fee is also in violation of the contents of para 13 of the trust deed wherein medical camps are said to be organized free. Thus, the assessee trust is profit oriented business entity and not a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant society for registration u/s 12AA of the Income Tax Act cannot be acceded to and the application in form 10A is, therefore, rejected accordingly u/s 12AA(l)(b)(ii)/250 of the Income Tax Act, 1961." 4. During the course of hearing, the ld. AR of the assessee contended that the only objection of the ld. CIT to reject the applications of appellant is that the assessee charged hefty fee from the students which amounts to be the consideration for rendering services. He, therefore, concluded that the assessee trust is profit oriented business entity and not a charitable institute. It is submitted that the ld. CIT has failed to consider the aims and objects of the appellant-society in right perspective, which completely qualify for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inion, does not go to suggest refusal of registration to the assessee-society as held by ITAT in the case of St. Don Bosco Educational Society (supra). The ITAT in the said decision has further observed that the scope of the powers of the CIT is confined to examine the genuineness of the activities of the Trust or institution and to examine the objects of the trust or institution and it is the exclusive jurisdiction of the AO to examine other aspect of the matter when the assessee claims any tax benefit. In the present case, we have also examined the income and expenditure accounts for three years filed by assessee at pages 21 to 50 of the paper book, according to which the income and expenditure earned and incurred by assessee-society are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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