TaxTMI 
TaxTMI 
2018 (4) TMI 1512
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....x (CIT) is bad both in the eye of law and on facts. 2. On the facts and circumstances of the case, the learned CIT has erred both on facts and in law in rejecting the application for grant of registration under section 12AA of the Income Tax Act, 1961. 3. On the facts and circumstances of the case, the learned CIT has erred both on facts and in law in rejecting the application of the assessee for registration under section 12AA despite the same being complete and in compliance to the provisions of the Act. 4. On the facts and circumstances of the case, the learned CIT has erred both on facts and in law in holding that the Society is not running for charitable purpose, ignoring the fact that the education per se is a charitable acti....
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....ndum of Articles; that the assessee society is earning sufficient profit which shows that this is not running for charitable purposes. 3. Feeling aggrieved, the assessee society has come up before the Tribunal by way of filing the present appeal. 4. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 5. To proceed further, we would like to pursue the aims and objects of the assessee society seeking registration u/s 12AA of the Act, which are as under :- "A) To impart primary, high school, Senior Secondary education to the masses & students at large without any dist....
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....y either movable or immovable. J) To invest and deal with the funds or money of the society. K) To construct, maintain, improve and develop Barat Garh. L) To carryon farming, developing waste land, nursery etc. for charitable purposes. M) To carry on all such type of charitable activities as are decided by the executive committee from time to time. N) To carry out any type of publicity work to promote awareness m the public about family planning." 6. Bare perusal of the aims and objects of the assessee society, reproduced above, shows that the basic object of the assessee society is to impart primary, high school and senior secondary school education to the students without any discrimination of cast, colour and creed and t....
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....es are noncomprehensive is concerned, again we are of the considered opinion that the ld. CIT has picked up two clauses of Memorandum of Articles e.g. :- (i) to provide creature comforts of clothing, cereals and monetary sides; (ii) to carry on framing and developing waste land etc. but has not examined the same in conjunction with other aims and objects of the assessee society. So, for the sake of repetition, it is held that approval or refusal of registration is not based upon one or two aims and objects of the society rather the Memorandum of Articles has to be examined in entirety which categorically leads to the conclusion that the basic aims and objects of the society are being carried out by imparting education to the public at l....
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.... purpose of profit. There are no categoric findings delivered by the ld. CIT that the assessee society is solely formed as a profit making entity. Moreover, when the primary aims and objects of the assessee society is education which is a charitable purpose, proviso to section 2(15) does not apply as per CBDT Circular No.11 of 2008. 12. Moreover, section 12AA provides for procedure for registration as to how the ld. CIT will provide the registration after getting satisfied about the aims and objects of the society and not to sit on the matter like the AO as all these facts are to be taken care of by the AO at the time of assessment. So, merely earning profit out of which only 15 - 16% are lying surplus with the assessee society cannot be a....