TMI Blog2009 (7) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... ax has to satisfy himself as provided under sect 12AA of the Act before allowing the registration – order of ITAT is not correct – decided in favor of revenue. - 40 of 2006 - - - Dated:- 15-7-2009 - PRAFULLA C. PANT and B. S.VERMA JJ. Pitamber Maulekhi for the appellant V. K. Kohli assisted by H. M. Bhatia for the respondent. JUDGMENT The judgment of the court was delivered by PRAFULLA C. PANT J. - An application (MCC) No. 502 of 2009 has been moved for review/recall of ex parte order dated June 12, 2009, passed in this appeal on the ground that the respondent had no knowledge of the restoration of appeal, after it was dismissed on December 3, 2008, for non-prosecution. 2. Considering the affidavit filed with the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner of Income-tax, Dehradun, for grant of registration under section 12AA(1)(b)(i) of the Income-tax Act, 1961, in the prescribed form 10A on June 7, 2004. The Commissioner of Income-tax examined the papers including the income and expenditure of the assessee for the financial years 2000-01, 2001-02 and 2002-03 and concluded that the assessee is not carrying any charitable activity within the meaning of section 2(15) of the Act, as it was in a profit making business. Consequently, the application for registration under section 12AA of the Act was rejected. Aggrieved by the said order, the assessee preferred I. T. A. No. 4278/Del/2004, before the Income-tax Appellate Tribunal, which was allowed, vide the impugned order dated Aug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In our opinion, though expression "not involving the carrying on of any activity for profit" cannot be read with the expression "education", but that does not make every kind of pure commercial activity in the name of education a charitable one and is necessarily be required to be registered under section 12AA of the Act. 10. On behalf of learned counsel for the appellant, it is argued that it is not necessary for the Commissioner of Income-tax to register a society under section 12AA, which is doing exclusively commercial activity. In reply to this, on behalf of learned counsel for the respondent, attention of this court is drawn to Victoria Technical Institute v. Addl. CIT [1991] 188 ITR 57, in which the apex court has held as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the institution and also about its objects, the Commissioner would either grant the certificate or would reject the prayer. In order to satisfy himself about the genuineness of the activities of the trust or the institution, he can call for such documents or information from the trust or the institution, as he thinks necessary and he is also empowered to make such enquiries as he may deem necessary in this behalf. The objects of the trust can be had from the bye-laws or the deed of trust, as the case may be, and unless, of course, the objects of the trust apparently make out that they were not in consonance with the public policy or that they were not the objects of any charitable purpose, registration cannot be refused accordingly on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said to be a charitable activity. We are of the firm view that, in the expression "charitable purpose", "charity" is the soul of the expression. Mere trade or commerce in the name of education cannot be said to be a charitable purpose. And the Commissioner Income-tax has to satisfy himself as provided under sect 12AA of the Act before allowing the registration. The question of law stands answered. 16. For the reasons as discussed above, the appeal is allowed. The impugned order dated August 12, 2005, passed by the Income-tax Appellate Tribunal, Delhi Bench "D", New Delhi in I. T. A. No. 4278/Del/2004, is hereby set aside. The order dated September 14, 2004, passed by the Com missioner of Income-tax, Dehradun, is restored. - - TaxTM ..... X X X X Extracts X X X X X X X X Extracts X X X X
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