TMI Blog2010 (12) TMI 1310X X X X Extracts X X X X X X X X Extracts X X X X ..... MBER: This appeal of the assessee is directed against the order of learned Commissioner of Income Tax (Administration), Salem, dated 29.01.2010 whereby the assessee was refused to grant registration under section 12AA of the Income-tax Act, 1961 (hereinafter called as the Act ). 2. In brief, the facts of the case are that the assessee-Trust, which was created through a Trust Deed executed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e accounts of the Trust, while rejecting the registration u/s.12AA. (Relying on 163 Taxman 19-(All) and 24 SOT 14- (Agra). 4. The CIT erred in not considering the material fact that this is the first year, in which the appellant Trust had commenced its activity and that he erred in applying the decision reported in 319 ITR 160 (Uttarakhand) (Date of the decision: 24/09/2007), in which the Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. The CIT erred in relying on the decision of the Supreme Court reported in AIR 1992 SC 1456 (this decision is also reported in (1992) 3 SCC 390), in spite of the finding by the Apex Court that charitable purpose as found in Delhi Municipal Corporation Act is narrower in scope. 9. The reliance by the CIT on the decision reported in AIR 1992 SC 1456 is misconstrued in as much as the CIT fail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecords called for by the Commissioner were produced before him. The Commissioner has looked into the profit and loss account and provisional balance sheet for the period 01.04.2009 to 31.12.2009 and therefrom he has found that there is a net profit and giving allied reasons, he has reached to a conclusion that the Trust is carrying its activity not for charity but for profit motive. Be that as it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Trust is running a nursing college which is a charitable activity, indeed. Therefore, in our opinion, the Trust is entitled to registration at this stage. What the Commissioner has looked into is to be looked into at the stage of making assessment of a particular year. Accordingly, we direct the Commissioner to grant registration to the Trust, and allow the claim of the assessee. 4. In the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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