2014 (4) TMI 1073

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.... to verify the application u/s 12A of the Act and genuineness of its activities, the office of the CIT issued notice dated 10.09.2013 to the assessee asking to produce necessary evidences in support of its application alongwith books of accounts, donation receipt book and invoices for expenses etc.. On examination of these details and documents, the ld. CIT observed that the main activity of the assessee is running a training institute for stitching and embroidery for women. According to the ld. CIT, giving training of stitching etc. is an occupational training which cannot be termed as educational training. The ld. CIT accordingly held that as per provisions of section 2(15) of the Act, the activity being carried out by the assessee are co....

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....the Act solely on the ground that the activity of training for stitching given by the assessee-trust is an occupational training and cannot be termed as educational activity. The ld. Counsel of the assessee submitted that the assessee-trust has provided stipend to poor and needy beneficiaries. He further drew my attention to the income and expenditure account wherein the stitching training income is Rs. 192668/- whereas expenses for these activities are of Rs. 231756/- i.e. there is a deficit of Rs. 39088/-. 5. Continuing his arguments, the ld. Counsel of the assessee further submitted that the aforesaid activities of the assessee-trust fall under the definition of 'charitable purpose' given in section 2(15) of the Act being advancement of....

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....siness as per section 2(15). The ld. Counsel of the assessee also relied upon the decision of ITAT Chennai Bench in the case of A.V.S. Educational Trust v. ITO, [2013] 30 taxmann.com 168, wherein it was observed by the Tribunal that for registration of newly registered trust, under section 12AA, objects for which it was formed should be examined and not its activities. 7. On the basis of aforesaid submissions, ld. Counsel of the assessee submitted that in the impugned order ld. CIT neither brought on record that activities of the assessee are non-genuine nor objects of the assessee are not charitable, within the meaning of section 2(15) of the Act; therefore, he may be directed to grant the registration to the assessee-trust u/s 12A of the....