TaxTMI 
TaxTMI 
2013 (11) TMI 165
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....nces of the case, the learned CIT has erred both on facts and in law in rejecting the application of the assessee for registration under Section 12A despite the same being complete and was in compliance to the provisions of the Act. 4. On the facts and circumstances of the case, the learned CIT has erred both on facts and in law in holding the aims and objects of the society not being charitable in nature. 5. On the facts and circumstances of the case, the learned CIT has erred both on facts and in law in rejecting the registration under section 12A of the Act by making reference to the provisions of RTE Act. 6. On the facts and circumstances of the case, the learned CIT has erred both on facts and in law in holding the activities conducted by the assessee as not being genuine, despite the assessee bringing all the material and evidence on record to prove the same." 2. The facts are that the assessee Society filed an application u/s 12AA (1)(b)(ii) of the Act in Form No.10A before the ld. CIT. As per the order under appeal, the assessee was required to submit the original instrument of its establishment along with a copy thereof. H....
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....becoming the real or dominant purpose of the institution. The copy of the revised constitution of the society does not contain any clause which could eliminate profit making from becoming the real or dominant purpose of the society while imparting education. The society/educational institution is making systematic profit year to year as under and diverting its profit towards corpus/capital to enhance its earning capacity through the acquisition of buildings & other fixed assets. Thus, the society is running its institutions on purely commercial lines and earning profits/ surpluses systematically year after year by charging substantial fees from the students and making huge profits. The Hon'ble Uttrakhand High Court in the case of CIT Vs National Institute of Aeronautical Engineering & Educational Society reported in (2009) 226CTR/82 has held that mere imparting education for primary purpose of earning profits can not be said to be a charitable activity. Charity is the soul of expression "Charitable purpose". Mere trade or commerce in the name of education can not be said to be a charitable purpose. 6 In order to examine the....
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....ally Weaker Section) as per Right of Children to Free & Compulsory Education Act, 2009. Since, as per RTE Act, the state government is to fix norm for EWS qualification and as per notification of government of Haryana, children of parents who are Below Poverty Line (BPL) card holder are qualified under EWS category. As no evidence was produced regarding financial status of families of those students to whom fee concession was given, it can not be verifiable whether these students falls under EWS category as per the criteria or not. The fee concession to students is claimed at Rs.1,69,020/- & Rs. 2,33,380/- in financial years 2010-11 & 2011-12 respectively. The names of the students who have been granted fee concession is not furnished. However, total fee forgone in this account is claimed at Rs.1,69,020/- & Rs. 2,33,380/- in financial years 2010-11 & 2011-12 respectively. In absence of details of names, class etc. the same cannot be verified. In any case, amount of concession (Rs.1,69,020/- & Rs. 2,33,380/-) against total fee collection of Rs.29,39,670/- & Rs.71,58,820/- in financial years 2010-11 & 2011-12 is merely 5.75% & 3.26% of total receipts of re....
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...., as contained in the said amended constitution (APB-17), the income and property of the Society shall be applied purely towards the promotion of the Society till its dissolution and no portion thereof shall be paid or transferred to the members of the Society till such dissolution; that apropos the observation of the ld. CIT regarding exorbitant fee being charged by the assessee Society, the expenditure of the assessee is about 95%, as available from the balance sheet of the assessee Society (APB 22-25), whereas Section 11 of the Act permits 85% expenditure; that so far as regards the observation of the ld. CIT that the amended constitution of the assessee Society does not contain any clause regarding elimination of profit making becoming the real or dominant purpose of the assessee Society, in 'Dera Baba Jodh Sachiar v. Union of India & Anr.' 328 ITR 178 (P&H), it has been held that if the surplus is applied for the objects of the Society for charitable purposes, registration ought not to be refused; that the ld. CIT had no jurisdiction to make the observations regarding aided/unaided schools; that there is no requirement u/s 12AA of the Act; that the role of the ld. CIT while co....
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....nature, in line with the provisions of Section 2 (15) of the Act. Further, the ld. CIT has taken recourse to the RTE Act to reject the assessee's application. Now, as correctly contended, it is not within the CIT's purview to do so. Under Section 12AA, what is required to be seen by the ld. CIT while considering an application for grant of registration, is as to whether the object of the applicant is charitable and as to whether its activities are genuine any further. The jurisdiction and competence to examine an issue under the RTE Act obviously lies with the authorities mentioned therein. Then, the CBDT Circular No.11 of 2008 (supra) clearly states, inter alia, that the proviso to Section 2 (15) does not apply in the case of education and where the purpose of a Trust or institution is education, it will constitute 'charitable purpose' even if it incidentally involves in carrying on of commercial activities.' 8. In 'Shri Sain Ji Dharmarth Trust' (supra), it has been held, at the stage of granting or refusing registration, CIT is not required to examine as to what amount should form corpus of trust, in what manner accounts were maintained and what should appear in balance sheet.....
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.... of the Trust and the genuineness of its activities and where the CIT has recorded no dissatisfaction on either of these aspects, he is not justified in refusing grant of registration on extraneous considerations. 14. No decision to the contrary has been brought to our notice on behalf of the department. 15. In view of the above, the order passed by the ld. CIT is hereby cancelled. We direct the ld. CIT to grant registration to the Society on verifying the original document of establishment of the assessee Trust, which has been shown to us. 16. As such, the appeal filed by the assessee is allowed. ITA No.5707/Del/2012 17. This appeal by the assessee has been filed against the order dated 17.10.2012 passed by the ld. CIT, Rohtak u/s 80 (G) of the Income Tax Act, rejecting the assessee's application for approval u/s 80(G) of the Act. The assessee has taken the following grounds of appeal:- "1. On the facts and circumstances of the case, the order passed by the learned Commissioner of Income Tax rejecting the application for approval under Section 80G of the Income-tax Act is bad both in the eye of law and on facts.  ....