TaxTMI 
TaxTMI 
2011 (4) TMI 1375
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....nt in the grounds of appeal may please be allowed. grounds of appeal may please be allowed. 2. The assessee society was established on 7th January, 1971. It was continuously enjoying exemption u/s 80G and for renewal of exemption u/s 80G, an application was filed on 26th March, 2008. Learned CIT after referring to the aims and objects of the society which are listed in para 3 of the impugned order, has refused to grant renewal of exemption u/s 80G on the ground that the objects of the assessee stated at serial No. 1, 2 and 4 to 8 do not fall within the meaning of "advancement of other objects of general public utility." They also do not fall within the meaning of "education". Learned CIT has also referred to the amendment brought into the statute in the shape of proviso to Section 2 (15) by the Finance Act, 2008 w.e.f. 1.4.2009 which stipulates that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business. He also observed that the assessee could not even amend those objects though 11 members of the society had placed on record a declaration on stam....
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....s and the total strength of the students of the assessee is 6550. He submitted that apart from those activities the assessee does not carry out any other activity. The amendment in the objects could not be made for the reasons stated in the declaration submitted before CIT signed by 11 members in which it was clearly stated that the sole objects of the society is education. The society is imparting education prescribed by the Education Boards in the case of schools and university, in the case of college for development of knowledge, skill and mind and character of the students at school level and college level and this education is not for the purpose of profit. The Members' list of the society is in dispute and the matter is pending in the High Court of Punjab and Haryana due to which they are unable to convene General Body Meeting of the Society for making necessary amendment in the constitution of the society. He submitted that learned CIT could not bring any material on record to suggest that the activity of the society constituted other than educational activity. He submitted that the assessee is enjoying registration u/s 12A continuously which has not been withdrawn till date....
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....1st March, 2002 vide letter dated 15th September, 2000, copy of such letter is placed at page 7 of the paper book. The said exemption u/s 80G was renewed for the period from 16th April, 2003 to 31st March, 2006 vide letter dated 14th October, 2003, copy of such letter is filed at page 8 of the paper book. Further, renewal u/s 80G was made vide letter dated 31st October, 2006 for the period from 1.4.2006 to 31st March, 2009 and copy of such letter is placed at page 9 of the paper book. Again, renewal application was filed on 15th September, 2009 wherein the assessee has sought the exemption u/s 80G in response to which Ld. Director of Income-tax (Exemption) has denied the claim of the assessee for renewal of exemption u/s 80G. The reason for declining such request is that the assessee has received income under the head 'Advertisements and golf tournaments income' and it has also incurred substantial expenditure on this activity only. The Director of Exemption has also observed that in earlier years also the assessee had been carrying out such activity only. According to Ld. DIT (E), the assessee thus, is engaged in the activity of commercial nature and activity of the assessee is no....
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.... any charitable activity. For this purpose, he has placed reliance on the following decisions:- "NN Desai Charitable Trust vs. CIT 246 ITR 452 (Guj) : authority examining the question whether a fund or institute is eligible to be certified for the purpose of Section 80G is not to act as an A.O.; once the applicant was registered u/s 12A and was granted approval u/s 80G (5) and also a renewal thereafter, CIT was not justified in refusing further renewal of approval on the ground that the income of the applicant trust was likely to be included in the taxable income for not complying with the requirement of Section 11. Sonepat Hindu Educational Charitable Trust vs. CIT 278 ITR 262 (P & H): It was held that while dealing with the application u/s 80G(5), the scope of enquiry by CIT extends to eligibility of the applicant to exemption under various provisions referred to in that subsection but not to actual computation under the Act, registration of an institution u/s 12AA by itself is a sufficient proof that the institution is created or established for charitable/religious purposes. Gaur Brahman Vidya Pracharini Sabha vs. CIT (2010) 129 TTJ (Delhi) 627 : It w....