TaxTMI 
TaxTMI 
2009 (7) TMI 94
X X X X Extracts X X X X
X X X X Extracts X X X X
....idering the affidavit filed with the Review /Recall Application No. 502 of 2009, the application is allowed and order dated June 12, 2009, passed ex parte in this appeal is hereby recalled. 3. Heard learned counsel for the parties at length, on the merits of the appeal, after the ex parte order dated June 12, 2009, is recalled. 4. This appeal (I. T. A. No. 40/2006), preferred under section 260A of Income-tax Act, 1961 (hereinafter referred to as "the Act"), is directed against the order dated August 12, 2005, passed by the Income-tax Appellate Tribunal (for short "the ITAT"), Delhi Bench "D", New Delhi, whereby Income-tax Appeal No. 4278/Del/2004, preferred by the assessee/respondent-National Institute of Aeronautical Engineering Educatio....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... impugned order dated August 12, 2005. Hence, this appeal by the Revenue. 7. Before further discussions, we think it proper to mention the relevant provisions of law applicable to this case. Section 2(15) of the Act reads as under: "charitable purpose" includes relief of the poor, education, medical relief and advancement of any other object of general public utility." 8. It is pertinent to mention here that earlier the expression "not involving the carrying on of any activity for profit" was deleted from the tail of the aforequoted provision with effect from April 1, 1984, vide the Finance Act, 1983. (Again the expression is restored, vide the Finance Act, 2008, With effect from April 1, 2009, with a proviso to it.) It is argued on beha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nder (page 59): "Where, therefore, the purpose of a trust or institution is relief of the poor, education or medical relief, the requirement of the definition of 'charitable purpose' would be fully satisfied, even if an activity for profit is carried on in the course of the actual carrying out of the primary purpose of the trust or institution. When the purpose of a trust or institution is the advancement of an object of general public utility, it is that object of general public utility and not its accomplishment or carrying out which must not involve the carrying of any activity for profit. So long as the purpose does not involve the carrying on of any activity for profit, the requirement of the definition would be met and it is immateri....
X X X X Extracts X X X X
X X X X Extracts X X X X
....3. The above case also does not help the respondent in the present case, as it does say that the Commissioner of Income-tax has to satisfy himself as to the genuineness of the activities of the trust or the society which has sought its registration under section 12AA of the Act. 14. Section 12AA of the Act provides the procedure for registration. Clause (a) of sub-section (1) of section 12AA empowers the Commissioner of Income-tax to call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of the activities of the trust or institution and may also make such inquiries, as he may deem necessary in this behalf. The said provision in section 12AA makes it clea....