2017 (11) TMI 1224

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.... questions of law: "Whether on the facts and circumstances of the case, the Hon'ble ITAT was correct in law in ignoring the intention of law behind inserting the Section 12AA(4) w.e.f. 01.10.2014 under the provisions "Procedure for Registration" which inherently empowers the CIT to examine the violation of Section 13(1) of the Act at the time of registration itself which was established in the present case." 3. Counsel for the appellant has taken us to the order of CITA who taking into consideration the different grounds has observed in Paras 11 and 12:- "11. For the above services the society is paying fee to the Career Point Ltd. As under (Annexure B of the agreement):- On having a careful look on all the activities which is being p....

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....aching in the hands of M/s Career Point Limited and the same will be distributed as profit to the share holders of the company. If such scheme is allowed to function, the basic purpose of the charitable activity will itself be lost. Whether the society and M/s Career Point Limited are connected directly or indirectly has no impact in deciding the charitable nature of the activities because as discussed in the preceding paragraphs, the funds of the society are being diverted and distributed to the shareholders of the company i.e. M/s Career Point Limited, which is against the basic norms of Section 2(15) of the IT Act 1961 and such activities cannot be held as genuine charitable activities." and further contended that in view of amended pr....