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2015 (6) TMI 547 - ITAT COCHINRegistration under s. 12AA cancelled - when the educational institution was run in a commercial manner by the so-called charitable institution, whether such a trust is entitled for registration under s. 12AA of the Act? - Held that:- When the assessee trust was collecting capitation fee for admission of the students over and above the prescribed fee, whatever the name it may be called, either as a building fund, development fund, etc. then the element of charity no longer remains. Such an institution cannot be considered to be a charitable institution for the purpose of grant of registration under s. 12AA of the Act. This view of the Tribunal is fortified by the judgment of of T.M.A. Pai Foundation v. State of Karnataka [2002 (10) TMI 739 - SUPREME COURT] and in Islamic Academy v. State of Karnataka [2003 (8) TMI 469 - SUPREME COURT]. A useful reference can also be made in Mohini Jain v. State of Karnataka [1992 (7) TMI 330 - SUPREME COURT] and in P.A. Inamdar v. State of Maharashtra [2005 (8) TMI 614 - SUPREME COURT]. The jurisdictional High Court in Dawn Educational Charitable Trust [2014 (3) TMI 149 - KERALA HIGH COURT] held that when the school is running on commercial lines under cloud of charitable purpose, the rejection of application for registration is justified. Since the material available on record clearly suggests that the educational institution is being run in a commercial manner, this Tribunal is of the considered opinion that the assessee is not entitled for registration under s. 12AA of the Act. - Decided against assessee.
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