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TMI Blog2021 (9) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... Act in form no.10A which was received in the office of DIT(Exemption) on 29.3.2014. The stand of the assessee was that it was created under deed of settlement on 15.9.1987. It got registered under Bombay Trust Act vide registration no.E-6844/Ahmedabad. According to the assessee, it was registered under section 12A of the Income Tax Act vide order No.HQ.III/179 dated 2.3.1988. Assessee further submitted that it was established primarily with the object of carry on educational activities. However, in view of enactment of Gujarat Private University Act, 2009 for establishing deemed university in the State of Gujarat, assessee-trust resolved to establish "Indus University" by becoming a sponsoring trust, and accordingly, invested roughly Rs. 5 crores by way of endowment fund with GSFC, and Indus University was notified in Gujarat Government Gazette in April 2012. The assessee has contended that it had continued to carry on other charitable activities, such as boarding facilities to the students of Indus University etc. According to the assessee, it has misplaced its certificate, and therefore, applied for fresh one for grant of registration under section 12AA on 29.3.2014. 4. On rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered as a building meant for educational activities. 6. On the other hand, the ld.DR relied upon the order of ld.DCIT(Exemption) and submitted that the ld.DIT(Exemption) has made reference to the order of ITAT, Chennai in the case of Young Women's Christian Association of Madras, 41 taxamnn.com 142. Relevant part of this decision has been reproduced by the ld.DIT in the impugned order. 6. We have considered rival contentions and gone through the record carefully. We find that identical issue was considered by us in the case of Shree Ahmedabad Lohana Vidyapith Bhavan (supra). The relevant part of discussion made by the Tribunal reads as under: "6. Short question required to be adjudicated by the Tribunal is, whether providing hostel facility to the students by appellant-trust is to be considered as imparting education within the meaning of section 2(15) of the Act or it would fall within the clause "advancement of any other object of general public utility" provided in the proviso appended to section 2(15) of the Act. The AO was of the opinion that providing hostel facility is not an activity akin to education. Hence, the activity performed by the assessee would not fall withi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssions made by the AO would be irrelevant. The simple reason is that assessee-trust came into existence in the year 1947. It has been providing hostel facilities for more than 60 years. It has always been treated as a charitable institution. In the assessment year 2010-11 a scrutiny assessment was made. Its status of "charitable institution" was accepted even after introduction of section 2(15) in the statute book. Not only it has been treated as "charitable institution" by giving registration under section 12AA of the Act, but under section 80G(5) it has again been recognized as "charitable institution". 7. Let us take note of reasons assigned by the AO. When the assessee has pointed out that it has been granted registration under section 12AA and 80G(5) of the Act, then the AO has observed that such registration was granted after looking into the objects of the trust. The AO observed that the assessee failed to submit any evidence showing that it is actually imparting education by conducting classes. The ld.AO failed to note that the stand of the assessee was always to the effect that, to run hostel particularly for the students is an activity according to the object of the tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a correct reference or not. If it was a correct reference then they should have continued with registration unless it is cancelled. Since registration certificate was not possessed by the assessee, therefore, it was applied afresh. This fact could be verified by the department with record maintained by it. Leaving apart this controversy, we are of the view that there is no disparity in the ratio of law between one we have discussed in the case of Shree Ahmedabad Lohana Vidyapith Bhavan (supra) vis-à-vis present one in our hand. We have held that running a hostel is akin to a running educational institution which falls within the provision of section 2(15) of the Act. In other words, this activity is to be considered per se charitable as contemplated in section 2(15) of the Act. Therefore, the assessee is entitled for the registration under section 12AA of the Act. Accordingly, we reverse order of the ld.DIT(Exemption) and allow the application of the assessee for grant of registration under section 12AA of the Act. The ld.DIT is directed to issue registration certificate in favour of the assessee. 8. In the result, appeal of the assessee is allowed. 9. Now we take ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X
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