2013 (5) TMI 364

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....the Income Tax Act, 1961 (for short 'the Act') against an order dated 28.05.2010, whereby Tribunal has allowed the registration to the assessee under Section 12AA of the Income Tax Act, but declined request for exemption under Section 80G of the Act. The Revenue has raised the following substantial questions of law: "(i) Whether on the facts and circumstnces of the case the ITAT was right in law in holding that the assessee's activities are of charitable nature, notwithstanding the fact that the assessee has been charging hefty fees as mentioned in para 5(iv) of the CIT's order dated 24.07.2009 passed u/s 12 AA of the Income Tax Act, 1961, which is not a charitable activity as per the provisions of Section 2 (15) of the Income Tax Act, i....

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....er Section 80G of the Act, which was declined by the Commissioner of Income Tax on 25.04.2011. The revenue is in appeal (ITA No.282 of 2012) against the order dated 12.02.2012 passed by the Tribunal setting aside the said order, which is listed for hearing separately today. The assessee was constituted as an University on 27.01.2009 under the Haryana Private Universities Act, 2006, when the Schedule to the aforesaid Act was amended vide ordinance No.4 of 2009. The assessee sought approval as an educational institute in terms of Section 10(23C) (vi) of the Act. Chief Commissioner, Income Tax declined approval on 18.01.2010. The assessee aggrieved against the said order filed CWP No.6171of 2010 before this Court. This Court allowed the wri....

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....niversity, the assets will vest in the sponsoring body i.e. Om Parkash Jindal Gramin Jankalyan Sansthan - trust registered under Section 12AA of the Act, whereas object 27 of the said trust is to apply the funds to construct, alter, maintain, improve, develop, manage and control Dharmshalas, Ashrams, Auditoriums and temples and to provide all kind of required facilities and worship materials to devotees. Therefore, the said trust is charitable and religious, which are not permissible in terms of Section 80G (5)(ii), which is reproduced as under: "(ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at a....

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....lished for the purpose of education is established for charitable purpose and is therefore eligible to seek registration under Section 12AA of the Act. Having heard learned counsel for the parties, we do not find any merit in the revenue appeal i.e. ITA No.190 of 2011. The university is a body corporate and established for the cause of education. It is, thus, a Institution eligible for registration within the meaning of Section 12AA of the Act. In the earlier writ petition, a categorically finding has been recorded that the university has been established solely for educational purpose and not for profit therefore, it is a charitable institution read with Section 15(2) of the Act. In view of the said fact, the assessee was, thus, righ....