2011 (9) TMI 1205

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... For the Respondent : Shri Shaji P Jacob, IRS, Sr.Dr. ORDER PER Dr.O.K.NARAYANAN, VICE-PRESIDENT: This appeal is filed by the assessee. The appeal is directed against the order of the Commissioner of Income-tax-II at Madurai dated 18-1-2010, rejecting the application filed by the assessee for registration under section 12AA of the Income-tax Act, 1961. 2. The assessee is a trust constituted for .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ier order, rejecting the application of the assessee. Another ground pointed out by the Commissioner of Income-tax is that the assessee is generating profit year after year and, therefore, in such circumstances, the activities of the assessee cannot be treated as charitable in nature. 5. We heard both sides in detail and considered the matter. The assessee is a trust. It is running a Teachers Tra .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the assessee. Earning of surplus by the trust by itself cannot be a reason to undo all other entitlements of the assessee. Generating surplus is not by that way against the provisions of law. Law intervenes only when the surplus is applied for purposes other than charitable purposes or when the authorities establish a case of profit motive in the activities carried on by the assessee. No such haz .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X