2023 (9) TMI 897

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....e facts of the case, the Hon'ble Tribunal has erred in directing the CIT (Exemption) to grant registration / certificate to the assessee trust under Section 10(23C)(vi) [Erroneously mentioned as "u/s. 10(23C)(vii)] of the Act?" 3. Facts in brief would indicate that the assessee made an application under Form 56D on 26.09.2018 seeking approval under Section 10(23C)(vi) of the Income Tax Act, 1961 (for short 'the Act'). The application was accompanied by a copy of trust deed. Certificate of Charity Commissioner and Audit Report for the financial year 2015-16, 2016-17 and 2017-18 were also produced with the application. It is the case of the assessee that the trust is carrying out educational activities through its institution namely Tiny S....

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....neral Public Utility. 3. To carry out and support all types of activities for building the character of students and their intellectual and physical development and make them self-reliant and hardworking. 4. the trust will undertake educational and moral activities and also become helpful to those institutions running such activities. 14. From the above objects, of the assessee trust it is abundantly clear that assessee's sole object is to provide education to students. The other ancillary activities, like promotion of cultural, social and sports, are necessary for building the character of students, therefore these other ancillary activities are just to promote the main activity of education. Hence, after going t....

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....in the educational activities and there is nominal profit which are earned by the assessee while conducting these charitable activities. The assessee-trust does not have profit motive, the small profit generated while carrying out charitable activities, does not mean that assessee is engaged in the commercial activities. Such small profit so earned is again utilised for charitable activities by the assessee trust." 5. Appreciation of facts by the Tribunal would indicate that on reproduction of the trust deed, it found that the trust carried out all activities so as to spread and impart education among people and to comment and develop institutions, hostels, kindergarten, aanganwadi etc. As far as the other purposes of the trust in runnin....