TaxTMI 
TaxTMI 
2011 (10) TMI 47
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (for short 'the Act'), for carrying on its object of establishing educational Institutions. 2. The question raised in both the appeals is identical, but for the facility of reference, the facts are taken from ITA No. 701 of 2010. 3. The respondent-assessee applied for registration under Section 12A of the Act on 19.8.2008, after registration of the Society on 12.8.2008. The learned Commissioner of Income Tax, the competent authority to grant of registration, sought explanation from the respondent, as to why registration has been sought when it is still in the process of acquiring land; construction of building of educational Institution is yet to start; various other steps for raising the appropriate infrastructure have yet not been ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pt to strengthen its claim for registration under Section 12A of the IT Act. If all the facts are analysed in a dispassionate manner, it really points to realization on the part of the society itself that its claim of registration under Section 12A with respect of its dominant objective of establishing educational institutes is premature as it is still in the process of purchase of land for this purpose; construction of building of educational institutes have still not started and no action has been taken for raising infrastructure and no permission from AITEC has been received." 6. In appeal, the learned Income Tax Appellate Tribunal, found that the Commissioner of Income Tax/Director of Exemption is empowered to satisfy himself about t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on a judgment of the Madras High Court reported as CIT v. Devi Educational Institution [1984] 18 Taxman 221 (Mad.)/[1985] 153 ITR 571, to contend that before an educational Institution claims exemption, the existence of educational Institution, is a must and, therefore, till such time, the educational Institution starts functioning, i.e. raising of construction and necessary infrastructures and approvals from AIETC, the respondents cannot be granted registration under Section 12A of the Act. Reliance is also placed upon the judgment of the Supreme Court in Aditanar Educational Institution v. Addl. CIT [1997] 224 ITR 310/90 Taxman 528. 8. We have heard learned counsel for the appellant, but find no merit in the present appeals. As per Sec....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n 12AA of the Act. 10. On the other hand, Section 10(23C) of the Act are the provisions of the Act in substitution of the earlier provisions of Section 10(22) of the Act as to which income shall not be included in computing the total income of any person. Therefore, the provisions of Sections 11, 12 or Section 10(23C) of the Act, deal with the income of a Trust or of the Institution and the circumstances as to when such income is to be excluded for computing the total income, but the basis of such benefit is the registration under Section 12AA of the Act. Unless a Trust or Institution is registered under Section 12AA of the Act, such Trust or Institution shall not be entitled to exclude from its total income, deductions or contributions ....