Tribunal orders registration under section 12AA for genuine educational activities.

The Tribunal directed the Ld. CIT(E) to grant registration to the appellant under section 12AA of the Act, allowing the appeal filed by the appellant. The Tribunal found the appellant met the conditions for registration, emphasizing the genuineness of their educational activities and dismissing objections raised regarding fund diversion and property ownership. The decision was supported by precedents from Punjab & Haryana High Court and Kerala High Court, highlighting the importance of the society's true charitable purpose in granting registration.

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Issues:
Registration of society under section 12AA of the Act.

Analysis:
The appellant filed an appeal against the order of Ld. CIT(E) rejecting the registration of the society under section 12AA of the Act. The crux of the appeal was the grievance of the appellant regarding the action of Ld. CIT(E) in disallowing the registration. The appellant argued that since they were enjoying exemption under section 10(23C)(iiiad) of the Act for engaging in educational activities, the registration under section 12AA should be granted. The Ld. DR, however, contended that there were issues regarding the ownership of the land on which the school building was constructed and alleged diversion of funds to the President of the society. Additionally, non-cooperation of the appellant was highlighted. The Ld. AR refuted these claims, emphasizing that the building was provided by the President without consideration for educational purposes, and the Assessing Officer could verify any diversion of funds during assessment. The Tribunal noted that the Assessing Officer had accepted the appellant's engagement in running a school and allowed exemptions under section 10(23C)(iiiad) for multiple years, establishing the genuineness of their activities. Citing precedents, the Tribunal held that the appellant met the conditions for registration under section 12AA and directed the Ld. CIT(E) to grant the registration.

The Tribunal's decision was supported by the observations of the Hon'ble Punjab & Haryana High Court and the Hon'ble Kerala High Court, emphasizing the importance of the real purpose of the trust or society in determining charitable status. The Tribunal found the Ld. CIT's objections contradictory, given the department's acceptance of exemptions for the appellant in previous years. The Tribunal concluded that there was no doubt about the genuineness of the society's objects, as evidenced by their educational activities and the absence of diversion of funds for non-charitable purposes. The case laws cited by the Ld. DR were deemed inapplicable to the present case, as they did not align with the factual circumstances. The Tribunal directed the Ld. CIT(E) to grant registration to the appellant under section 12AA of the Act, allowing the appeal filed by the appellant.

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