TaxTMI 
TaxTMI 
2019 (6) TMI 705
X X X X Extracts X X X X
X X X X Extracts X X X X
....sly erred both in law and on facts in rejecting the application for registration of the assessee society u/s 12AA of the Act. 2. That the learned Commissioner of Income Tax (Exemptions) has failed to appreciate the objects of the society and, has arbitrarily on misconceived assumptions of both law and facts concluded that the assessee was not pursuing the charitable objects of education. 3. That finding that "over the period of time the emphasis of the society is mainly on creation of assets that too mainly on cars and vehicles. Moreover the salary and fee structure of the society is not in sync with the instruction issued by the CBSE while providing affiliation to an entity" is factually incorrect and legally misconceived. 4. That fu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Act, 1961. The Society is an ongoing entity that has been in operation since 26/04/1989. An aims and objects of the society are to run and manage M/s Saint Kabir Education Society, Hisar to utilize the resources of society for propagation of education; to establish and run education institutions for promotion of modern education in Haryana; to prepare buildings, hostels, sports ground and library for institutes of society. The CIT (Exemption) rejected the application u/s 12A for grant of Registration on the ground that there is no genuineness of activities of the society which can be corporate with the aims and objects of the society. The Commissioner further observed that the activities of the applicant got severely compromised when a soci....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t Year 2016-17 there is no surplus. However, orders have been made in assessment u/s 143(3) of the Act for the Assessment Year 1996-97, 2003-04, 2004-05 & 2008-09 wherein exemption u/s 10(22)/10(23C) (iiiad) has been availed by the applicant. The Ld. AR further submitted that objects of the society are wholly charitable in as much as main object is of providing education which is covered u/s 2(15) which provides an inclusive definition of the expression charitable purpose. The Ld. AR relied upon the following decisions: * 93 ITD 546 (Del) Aryan Educational Society Vs. CIT * TTJ 127 (Del) Shavak Shiksha Samiti Vs. CIT * ITA No. 5009/Del/2007 M/s Aggarwal Sabha Meham Vs. CIT(A) * 27 SOT 331 (Del) Shri Krishna Education and Welfare Tru....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng the decision of the Hon'ble Supreme Court in case of on Queen's Educational Society Vs. CIT 372 ITR 699 and CCIT Vs. St. Peter's Educational Society 385 ITR 66. The Ld. AR further submitted that from the activities of the trust some surplus is generated, the same will not disentitle the trust for the claim of exemption u/s 11 & 12 of the Act. The Ld. AR further submitted that so long no trustees is entitled to benefit of surplus and surplus is utilized for promotion of objects of the trust. Therefore, exemption cannot be denied. The Ld. AR submitted that both during the existence of society and on dissolution of the society, the income and property shall be applied towards the object of the society and no fund shall be distributed/tr....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Vs. CIT(A) ITA No. 809/LKW/2014 * Islamic Academy of Education Vs. State of Karnataka and others 6SCC (697) * Kirti Chand Tarawati Ch. Trust vs. DIT [1999] 105 Taxman 686 (Delhi/[1998] 232 ITR 11 (Delhi)/[1999] 152 CTR 322 (Delhi) 8. We have heard both the parties and perused the material available on record. The Ld. DR's submission that no details were filed regarding computation of income to verify eligibility of assessee u/s 10(23C)(vi) of the Act. But the requirement of Section 12AA registration is only to the extent that the Commissioner has to satisfy himself about the objects of the trust or institution and the genuineness of its activities. Further, it is of great importance that the activities of such institutions be looked ....