2010 (11) TMI 1082 - AT - Income Tax

Summary

Issues involved: Refusal of registration u/s 12AA and approval u/s 80G of the Income-tax Act, 1961.

Registration u/s 12AA and approval u/s 80G:
The appellant, an educational institution, appealed against the refusal of registration u/s 12AA and approval u/s 80G of the Act. The counsel argued that the refusal lacked basis and failed to appreciate the institution's operational spirit. The Memorandum of Association highlighted the objective of providing education with moral and spiritual values. The appellant clarified that its focus was on quality education without any spiritual activities. However, the DIT (Exemptions) deemed the object as religious due to references to Christianity. The Tribunal disagreed, stating that the spirit of Christ, emphasizing helping others regardless of religion, did not make the institution religious. Education aligned with such values was considered charitable and philanthropic. Consequently, the DIT's decision was overturned, and the appellant was granted registration u/s 12AA and approval u/s 80G.

Conclusion:
The appeal by the appellant was allowed, and the DIT (Exemptions) was directed to provide registration u/s 12AA and approval u/s 80G of the Act.