2006 (8) TMI 240 - AT - Income Tax

Summary

Issues involved: Registration of a society under section 12AA of the IT Act, 1961 based on charitable purpose.

Summary:
The appeal before the Appellate Tribunal ITAT DELHI-B arose from the Commissioner of Income-tax (CIT), Ghaziabad's order refusing registration to an assessee-society under section 12AA of the IT Act. The society, registered under the Societies Registration Act, aimed to establish a school providing education and extra-curricular activities. The CIT held that the society did not cater to the poor and thus was not pursuing a charitable object.

Upon review, the Tribunal noted that the society's objects, including advancing education and maintaining schools, were charitable in nature. The absence of profit distribution provisions and the genuine intent to set up a school supported the charitable purpose. While the society's income could be exempt under section 10(23C), the Tribunal emphasized the society's entitlement to registration under section 12AA. Consequently, the Tribunal directed the CIT to grant registration to the society.

In conclusion, the Tribunal allowed the appeal, emphasizing the charitable nature of the society's objects and activities, leading to the directive for registration under section 12AA of the IT Act.