TaxTMI 
TaxTMI 
2017 (12) TMI 1165
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....ction of Ld. CIT(E) by which he has not allowed the registration of the society u/s 12AA of the Act. 3. At the outset the Ld. AR submitted that under similar facts and circumstances, the Ld. CIT (E) had rejected the application of the assessee in the case of Regional Educational Development and Welfare Society. The Hon'ble Tribunal was pleased to reverse the order of Ld. CIT (E) vide its order dated 4/10/2017. The Ld. AR in this respect invited our attention to order of Ld. CIT (E) in the case of Regional Educational Development and Welfare Society placed at paper book Page No. 57 to 60 and also invited our attention to paper book Page No. 48 to 54 where a copy of the order of the Tribunal reversing the orders of Ld. CIT(E) was placed. T....
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....of land on which school building was constructed and in this respect our attention was invited to Page 6 of Ld. CIT(E)'s order and it was submitted that the President of the society was owner of said land and building and receipts of this school was being used for further construction of building and therefore, there was clear diversion of receipts to president of the society. It was further submitted that in the present case, the appellant society was non-cooperative also as is evident from the order of Ld. CIT(E) where at Page 11, he has noted that the assessee had not furnished evidence regarding compliance of free and compulsory education which envisages 25% admission for the students belonging to economically weaker sections. Ld. DR in....
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....the present case, it is an admitted fact that the assessee was carrying out the charitable activities through running of a school. 6. We have heard the rival parties and have gone through the material placed on record. We find that at the time of grant of registration u/s 12AA of the Act, the Ld. CIT(E) is empowered to look into the objects of the society and also the genuineness of its activities with respect to achievement of those objects. In the present case, it is an admitted fact by the Assessing Officer who vide order dated 19/02/2016 for Assessment Year 2014-15 had admitted that the assessee was engaged in running of a school in the name of Marigold High School and has also allowed deduction u/s 10 (23C) (iiiad) of the Act. The A....
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.... that one remains confined to the objects of the society or the trust, as set out in the memorandum of association or the trust deed, as the case may be. What is required to be found is the real purpose of establishment of the trust. There can be no quarrel with the proposition that the CIT, conferred with the power to grant exemption, is fully competent to find out the real purpose, as distinguished from, the ostensible purpose of establishment of the society or the trust. If the CIT is convinced that the purpose of the society or the trust is not charitable, nothing debars him from denying the approval but, at the same time, if he is satisfied that the objects of the trust, as set out in the deed of declaration, were charitable, then havi....
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....e society has been running a school and on the other hand he mentions that the objects appear to exist only on paper. This coupled with the fact that the department has also accepted the assessee's claim of exemption u/s 1023C (iiiad) for three consecutive years leaves no doubt about the genuineness of the objects of the society. We also find support from the observations of the Hon'ble Punjab and Haryana High Court and the Hon'ble Kerala High Court as reproduced above. Accordingly, we reverse the order passed by the Ld.CIT(A) and direct him to grant registration to the assessee society." 7. The facts in the present case are para materia with the facts in the case law relied on by Ld. AR except the objection with regard to diversion of f....