2012 (2) TMI 620 - HC - Income Tax

Refusing registration to the respondent/institution u/s 12AA after recording finding of surplus generation - Held that - All the three activities, namely running of swimming pool, production centre, printing press and agricultural income and found that those activities could not have been considered as independent activities carried out by the assessee with profit motive. The dominant object of the assessee of advancing the cause of education has been accepted. Search and seizure operation u/s 132 on 2.8.2007. This portion has not been looked into either by the Commissioner of Income Tax or Income Tax Appellate Authority. Mr.Dewani has pointed out that the claim under Section 12AA was for the period commencing from 1.4.2008 and we find it correct.

Summary

The Bombay High Court rejected the appeal regarding the refusal of registration under Section 12AA of the Income Tax Act for an institution. The activities of the institution were found to be for advancing the cause of education, not for profit. The Court noted a search and seizure operation but found no substantial question of law. Appeal rejected with no costs.