TaxTMI 
TaxTMI 
TaxTMI 
2015 (9) TMI 655
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....f Dr. C.P Chaudhacy, President of society, meant for purchase of stamp papers with regard to purchase of land and/or advances against purchase of land for expansion of college reflects that 'all the activities of society are neither genuine nor are being carried out in accordance with the objects of the society'. 2. BECAUSE the Ld. Commissioner of Income-tax has erred in law and on facts in holding that since an amount of Rs. 1.10 crore from anonymous donations used in the construction of college building was surrendered during survey u/s 133A and tax was paid u/s 115BBC of the Act, therefore, the activities of society are neither genuine nor are being carried out in accordance with the objects of the society. 3. BECAUSE the Ld.....
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.... per its order dated 31/03/2008 reported in 24 SOT 62. He also submitted that the copy of Tribunal decision is available on pages 148 to 155 of the paper book. In particular, our attention was drawn to Para 5 & 6 of the Tribunal decision available on pages 152 and 153 of the paper book. He submitted that these facts were duly considered by the Tribunal that fees were being charged by the assessee and in spite of this, it was held by the Tribunal that registration cannot be refused to the assessee society. He also submitted that copies of letters from the State Government, determining fee structure of the private medical colleges, engineering colleges etc. are available from pages 142 to 147 of the paper book and it can be seen that the fees....
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.... copy of the amended objects of the society. These objects are amended as on 21/09/2002. Clause 8 of the amended objects reads as follows:- However, on going through the enclosed accounts, it is seen that receipts from students were Rs. 2,17,15,000/- in assessment year 2006-07, Rs. 67,91,250/- in assessment year 2005-06 and Rs. 50,20,000/- in assessment year 2004-05. The receipts in subsequent years are much higher reaching Rs. 6,52,92,104/- in assessment year 2011-12. This proves that the assessee has no intention of running the society on charitable lines as set out in its objects. It is very clear therefore, that the society is not being run according to its objects and has thus contravened the provisions of section 12AA(3) of the In....
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....her the activities of the assessee society are being carried out in accordance with the objects of the trust or institution. We find that as per the amended objects of the society dated 21/09/2002, available on page 141, out of 12 such objects, clause No. 8,10,11 and 12 of the amended objects are relevant and the same has been reproduced by learned CIT in Para 5 of his order, which have been reproduced by us also. As per these clauses of the amended objects of the society, we find that it has been prescribed in clause 8 that the assessee society will make arrangement for free health education for general public. As per clause 10, the assessee society is supposed to establish dental college and run it on free basis. Similarly, as per clause ....
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....of the Act. In our considered opinion, this Tribunal decision has no relevance for the present dispute because for the purpose of granting registration u/s 12AA what is required is that the CIT should satisfy himself about the genuineness of the trust. For the purpose of cancelling the registration u/s 12AA(3), what is to be seen is that as to whether the activities of the trust are being carried out in accordance with the objects of the trust or not. When the activities are found genuine, registration has to be granted to a society u/s 12A but if it is found later on that such activities are not being carried out in accordance with the objects of the trust, such registration granted earlier is liable to be cancelled. Hence, while deciding ....