TaxTMI 
TaxTMI 
2015 (8) TMI 1365
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....for the reason that the aims and objects of the trust included running of coaching centre which could not be said to be in the nature of providing education. The Ld. CIT held that the assessee had non- charitable activities as part of its objects. Relying upon the decision of the Apex Court in Yogiraj Charity Trust vs CIT 103 ITR 777 and in Fast India Industries (Madras) (Pvt) Ltd. 65 ITR 611 he held that if there were several objects of the Trust, some of which were charitable and some non-charitable and the trustees might apply the income to any of the objects in their discretion, the whole trust would fail and no part of its income would be exempt from tax. Secondly the Ld. CIT held that the accounts of the assessee were not maintained correctly, since the assesse had not shown interest on FDR's as part of its receipts so as to avail exemption u/s 10(23C)(iiiad) by showing its total receipts to be below Rs. 1.00 crores and therefore the activity and affairs of the assessee were not genuine. The Ld. CIT also held that the assessee had been earning huge profits year after year which showed that it was not running for the purpose of charity. The CIT stated that it belied its cl....
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....ecognized professional college and imparting education to the Nursing students of B.Sc. Nursing, ANM and GNM Nursing. The assessee is also running recognized Nursing college under the permission of Indian Nursing Council New Delhi and Govt. of Punjab, Department of Medical Education & Research Health. The AR filed NOC to start GNM and ANM course granted to it by the Department of Medical & Research at pages 6 to 8 &10 of its Paper Book. Also under Baba Farid University of Health Sciences Faridkot, Diploma or Degree is granted by the University in nursing. Grant of consent of affiliation certificate of the same was filed by the AR at page 9 & 11 of the Paper Book. The AR argued that the sanctioned strength for admission of student is fixed by the Indian Nursing Council for different courses and also by the Punjab Govt. relevant document filed at page 12 of the Paper Book. The students from this Institution are at the same level as that of training in the medical college/hospital of the State/Centre Government. The students get the practical training in the nearby Govt. Hospitals i.e. Govt Rajindra Hospital Patiala, Govt Mata Kaushalya Hospital Patiala, Govt. Civil Hospital Rajpura, ....
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....under section 12AA, had actually been utilized for the purpose of expansion of educational activity of the trust and not for personal profit. He pleaded that merely earning the profit which were being utilized for the purpose of education could not be taken as a ground for treating the asessee as ineligible for registration. 7. Ld. DR on the other hand placed reliance on the order of Ld. CIT. 8. We have heard the Representatives of both the parties and perused the documents placed before us. 9. Since the present appeal relates to the provisions of section 12AA, it is imperative to understand the scope of the powers of the Ld. CIT for granting or refusing registration u/s 12AA before adjudicating on the issue in the present appeal. 9.1 A reading of provisions of sub-cls. (a) and (b) of s. 12AA makes it clear that the CIT has to satisfy himself about the genuineness of the activities of the trust of institution and also about the objects of the trust or the institution. On being satisfied about the genuineness of the activities of the trust or the institution and also about its objects, the Ld. CIT would either grant the certificate or would reject the prayer. In order to....
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....f society i.e. SC/ST/BC and to make programmes for early child-hood care and education for 3-6 age group children and to construct a women hostel. d) To help the old people by establishing the home for sick and old to construct Guru Nanak Community Centre and a Bhai Gurdas Niwas. e) To enlighten the people about their fundamental rights. f) To work for the religious, economic and special uplift of the people. g) To promote the comparative study of the preaching of great Gurus, Bhagats and Sufi Saints through books, papers journals. h) To promote a better understanding of the religion, history and tradition by media. i) To promote the study of history and culture in its true form. j) To propagate the ideal of brotherhood i.e. Manas ki Jat Sabe Eko Pachanbo through media. 9.4 Clearly, as per the trust deed, ten objects were listed as being the purpose for which the trust had been created. The Ld. CIT has picked up one object out of the many listed by the assessee and treating the same as not charitable, has rejected the application of the assessee. We find that merely because one of the objects of the Trust appears to ....