TaxTMI 
TaxTMI 
TaxTMI 
2015 (5) TMI 260
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....ing to the filing of the appeal by the Revenue may be stated as under : The society was registered under the Societies Registration Act, 1860, and also under the Bombay Public Trusts Act, 1950. It was also registered as a "trust". under section 12A of the Income-tax Act (in short, "the IT Act"). It is a charitable institution established with the primary object of imparting education to all irrespective of the caste, creed or sex with the preference to north Karnataka. The society was granted an approval under section 10(23C)(vi) of the Income-tax Act, by order dated December 30, 2008, and the same was in force from the assessment year 2008-09 onwards. Further, as per the order dated on June 22, 2009, the society was approved under section 80G of the Income-tax Act, for the period from April 1, 2009, to March 31, 2012. During the course of scrutiny of the list of donees as annexed with the returns filed by the society for the assessment year 2008-09, the Assessing Officer under section 133(6) of the Income-tax Act called for information from the donors as to their voluntary donations made to the society. After receipt of the information from the donors, the Assessing Officer was o....
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....or the purpose of seeking admission in the society's colleges/institutions or any other institutions run by the society ; (viii) that the allegations that the donations received by the society are towards admission of students to the KLE University is baseless and contrary to facts ; (ix) that the donations received by the society have no connection either direct or indirect with the admission of students to the KLE University ; (x) that under section 9 of the Karnataka Educational Institutions (Prohibition of Capitation Fees) Act, 1984, to inspect, enquire and investigate as to whether the institution has collected capitation fee in contravention of the provisions of the said Act, is vested with the Government of Karnataka and, therefore, the enquiry made by the Income-tax authority under the Income-tax Act is without jurisdiction ; (xi) that the voluntary contribution collected by the society from the donors cannot be said as capitation fee and the benefit of sections 11 and 12 of the Income-tax Act cannot be denied to the society ; (xii) that the income derived from property held under the trust refers to the income like interest, rent from property, fees from schools/c....
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....object is incorrect interpretation ; (xx) that the hospitals and hostels run by the society are linked with the main object of education. 6. The Revenue considered the above grounds but by order dated July 8, 2011, the Commissioner of Income-tax rejected the contentions and held that the activities of the society are not genuine and not being carried on in accordance with the objects and not remained as charitable purpose within the meaning of section 2(15) of the Income-tax Act and the registration hitherto granted to the society under section 12AA(3) of the Income-tax Act was cancelled. This was challenged by the society before the Appellate Tribunal in I. T. A. No. 149/PNJ/2011. 7. The Appellate Tribunal, on considering the grounds urged by the society and the Revenue has held that the entire impugned order does not reveal that the society has prejudiced or infringed any of the conditions set out in the registration granted under section 12A of the Income-tax Act, viz., (i) the activities of the institution are not genuine ; or (ii) the activities of such institution have not been carried on in accordance with the objects for which the registration was granted. Therefore, the....
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....he donation collected by the society and admissions given to the students of KLE University. He has cited the following decisions : (i) CIT v. Surya Educational and Charitable Trust [2013] 355 ITR 280 (P&H) ; (ii) CIT v. Savior Charitable Trust [2013] 84 CCH 287 (P&H) ; (iii) CIT v. National Institute of Aeronautical Engineering Educa tional Society [2009] 315 ITR 428 (Uttarakhand) ; (iv) CIT v. Lucknow Development Authority [2014] 98 DTR (All) 183; (v) Miss Mohini Jain v. State of Karnataka [1992] 2 SCC 666 ; (vi) Indian Medical Association v. Union of India [2011] 7 SCC 179 ; (vii) P. A. Inamdar v. State of Maharashtra [2005] 6 SCC 537 ; (viii) Islamic Academy of Education v. State of Karnataka [2003] 6 SCC 697 ; (ix) Visvesvaraya Technological University v. Asst. CIT [2014] 362 ITR 279 (Karn) ; (x) Vodithala Education Society v. Asst. DIT (Exemptions) [2008] 20 SOT 353 (Hyd) ; (xi) P. S. Govindasamy Naidu and Sons v. Asst. CIT [2010] 324 ITR 44 (Mad) ; (xii) Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR 234 (SC) ; (xiii) CIT v. Durga Prasad More [1971] 82 ITR 540 (SC) ; and (xiv) Sumati Dayal v. CIT [1995] 214 ITR 801 (SC). 9. On the other hand, Sri S.....