TMI Blog2016 (12) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... ety/school and /or for acquiring the capital/ fixed assets. As regards providing of fee educational material and books, financial aid, hostel and medical aid to the poor students, the assessee has submitted the explanation at page 4 of ld. CIT order that 50% fees exemption has been granted to few students. Therefore, in the circumstances and facts of the case, the assessee society is running its activity for the purposes for which it was registered. The objections raised are without any basis and material on record and therefore, the registration cancelled by him is not justified - Decided in favour of assessee - DB Income Tax Appeal No. 613/2008 - - - Dated:- 22-11-2016 - K. S. Jhaveri And Mahendra Maheshwari, JJ. Ms. Parinitoo J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ld. CIT's order. The ld. CIT(A did not find the explanation of the assessee convincing mainly for two reason i.e in each assessment year, starting from 1999-2000 to 2004-2005, the assessee under the five heads i.e. boarding and lodging, computer fees, laboratory fees, news letter fees and vehicle fees, had the surplus being receipts more than the expenditure. The second reason for which the ld. CIT was not satisfied that as per the objects of the society, the society was required to provide the books and educational material free and financial aid to the poor students and the hostel and medical aid to the poor students and the society has not been able to prove whether such facilities has been provided to the poor students and the so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the I.T. Act, 1961 by the ld. CIT, Jaipur, vide order dated 19-07-1988 (PB 11). The ld. CIT in his order at page 1 has pointed out that the institution is collecting the fees in excess of actual expenditure and the fees is being charged in a commercial manner with a motto of earning profits and the institution therefore, is generating surplus year after year. The ld. AR Shri Kranti Mehta, Chartered Accountant has pointed out at PB 1 to 9 that the society had the objects to provide education in the backward industrial area of Bhiwadi and to achieve this object to open schools, libraries, to provide books, educational material, financial aid, hostel facilities and medical aid to the poor. On perusal of the objects of the society, it is found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r any of the member of the society. There is no findings of the ld. CIT in this regard and no material has been brought on record in this regard. As regards the charging of the fees under different heads, the ld. AR pointed out that the assessee society is registered with Board of Secondary Education and holding a certificate in this regard and the fees charged under different heads is an per the regulations and bye-laws as prescribed by the said Board and no objection has been raised by the said Board in this regard and the assessee society is holding the certificate from the said Education Board. We are convinced with the arguments of Shri Kranti Mehta, Chartered Accountant that while holding the valid certificate from Board of Secondary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2003-04 38,73,448 2004-05 56,67,687 2005-06 -37,72,221 2006-07 -15,63,572 The capital expenditure as per fixed assets schedule of the society and that of school for different years (PB 16-37) is as under:- Financial Year Capital expenditure (Fixed Assets) of society (Rs.) Capital expenditure (Fixed Assets) of School (Rs.) 1998-99 21,78,566 9,75,308 1999-00 8,19,223 8,65,435 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial on record and therefore, the registration cancelled by him is not justified. 8. We are of the opinion that the finding of the Tribunal which is fact finding authority is just and proper and decisions relied on page No.51 are as under: 1. Dharamadeepti Vs. CIT, 114 ITR 454 (SC). 2. Sole Trustee Loka Shri Kishan Kumar Trust Vs. CIT, 101 ITR 234 (SC). 3. Aditanar Educational Institution Vs. Addl. CIT,224 ITR 310 (SC). 4. DCIT Vs. Cosmopolitan Education Society, 224 ITR 494 (Raj). 5. CIT Vs. Rajasthan State Text Book Board,244 ITR 667 (Raj). 6. CIT Vs. Lagan Kala Upvan, 259 ITR 489 (Del.). 9. The decision taken by the Tribunal is just and proper, we confirm the same, therefore, the objectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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