TaxTMI 
TaxTMI 
2012 (11) TMI 1342
X X X X Extracts X X X X
X X X X Extracts X X X X
....s. 1 and 2 are effective grounds of appeal and other grounds of appeal raised by the assessee are narrative in nature. We proceed to dispose off the grounds of appeal Nos. 1 and 2, which read as under: "1. That the Ld. CIT-I, Ludhiana has erred in refusing registration to the appellant trust namely M/s Global Educational Society u/s 12AA (1)(b)(ii) of the Income Tax Act, 1961 in response to application u/s 12A filed by the appellant in Form No. 10A. 2. That the registration of the appellant society has been refused against the facts and circumstances of the case by not considering our submissions properly." 3. The only issue raised in the present appeal is the non-grant of registration to the assessee tru....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on 2(15) of the Act was to be understood as imparting of education by normal school and not by running profitable Engineering and Medical college etc., and indulging in sale of education. The Commissioner of Income Tax also noted the assessee trust to have kept the dissolution clause open ended. The Commissioner of Income Tax refused to grant registration to the assessee trust under section 12AA(1)(b)(ii) of the Act. 5. The assessee is in appeal against the order of the Commissioner of Income Tax. The learned A.R. for the assessee making reference to the memorandum and articles of Association placed at pages 9 to 14 of the Paper Book pointed out that the assessee trust was constituted for establishing the college of dental education and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d on record. 8. We have heard the rival contentions and perused the record. In order to avail exemption under sections 11 and 12 of the Act, the assessee trust is required to apply and get itself registered as a trust under the provisions of section 12A of the Act. Further it is provided under the said section that the Commissioner of Income Tax in exercise of its power shall look into the objects of the trust whether the same are genuine and also to enquire into the genuineness of activities carried on by the assessee trust. In case the Commissioner of Income Tax is so satisfied that aims and objects of the trust are in line with the provisions of section 2(15) of the Act, the registration under section 12AA of the Act would be granted ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of matters with lead order in CIT, Bhatinda Vs. Baba Deep Singh Educational Society, Bhatinda in ITA No. 881 of 2010 - date of decision 13.10.2011 addressed similar issue of grant of registration under section 12AA of the Act which was denied to the assessee due to the enquiries made by the Commissioner of Income Tax before granting of registration under section 12AA of the Act. The Hon'ble High Court in CIT, Bhatinda Vs. Baba Deep Singh Educational Society, Bhatinda (supra) referred to the ratio laid down in CIT-II, Chandigarh Vs. M/s Surya Educational & Charitable Trust, Chandigarh (supra) and observed as under: The power of the CIT regarding the scope of Section 12AA of the Act has been considered by this Court in the o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that registration should be granted to the respondent-society with the rider that the same could always be cancelled if it came to the notice of the CIT that the society was not carrying on the activities as per its objects. The Commissioner while processing the application under Section 12AA of the Act was not to act as an Assessing Authority and thus, the Tribunal has rightly allowed the appeal filed by the society in the facts and circumstances of the present case." 11. Applying the above said ratio to the facts of the present case we find that the assessee trust was registered on 1.10.2009 and the certificate of registration of Societies is placed at page 2 of the Paper Book. The copy of Memorandum and Article of Association and Rule....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the society and come to a satisfaction in respect of the genuineness of the activities of the trust. In the facts of the present case where admittedly the assessee is running dental college and activities were by way of constructing the building for establishing the dental college to provide education and consequently the assessee is entitled to the grant of registration under section 12AA of the Act. In view thereof, we hold that where the objects of the trust were genuine i.e. of providing education and the activities undertaken by it were also genuine as it had started constructing the building in which such dental college has to be established, the claim of the assessee for grant of registration under section 12AA of the Act for carryin....