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TMI Blog2009 (7) TMI 832X X X X Extracts X X X X X X X X Extracts X X X X ..... 2A of the Act is a condition precedent for claiming the benefits under sections 11 and 12 of the Act, a registration as per section 12A by itself, will not automatically confer the benefits of sections 11 and 12 on a trust, but the trust will get the benefit only on complying with the requirements of sections 11 and 12 of the Act, which compliance can be examined by the assessing authority, while processing the return filed by the trust. - IT APPEAL NO.57 OF 2004 - - - Dated:- 15-7-2009 - SHYLENDRA KUMAR D. V., ARAVIND KUMAR , JJ JUDGMENT This appeal under section 260A of the Income-tax Act, 1961 by the Revenue is directed against the order dated August 25, 2003 passed by the Income-tax Appellate Tribunal in Income tax Appeal No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (22) of section 10 of the Income-tax Act up to the assessment year 1998-99. 5. In view of the amendment brought about by the Finance Act, 1999 deleting the provisions of clause (22) of section 10, the assessee-trust could not claim exemption under the specific provision. But otherwise an organisation which had for its object education as one of its purpose could become an organisation which has a charitable purpose within the meaning of clause (15) of section 2 of the Act and could have availed of the benefits of exemption in terms of sections 11 and 12 of the Act. 6. However, for claiming the exemption/benefits in terms of sections 11 and 12 of the Act, an organisation so claiming exemption is required to make an application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion fee and otherwise from the students who were being admitted to the educational institutions run by the trust. 9. In view of such finding, the Commissioner thought that the trust was not really having a charitable purpose as its object and, accordingly, rejected the application. 10. The aggrieved applicant-assessee appealed to the Income-tax Appellate Tribunal in terms of section 253(1)(c) of the Act. The Appellate Tribunal in terms of the impugned order opined that notwithstanding the various discrepancies and misapplication of the funds of the trust as noticed by the Commissioner, the trust nevertheless having the object of running educational institutions, would qualify as a trust having a charitable purpose as one of its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, therefore, the Tribunal is in error in simply allowing the appeal and directing grant of registration. 12. Learned standing counsel would also submit that as it appeared, the order of the Tribunal had not indicated as to the date of grant of registration and not showing awareness to this aspect was again an error which had been committed by the Tribunal and, therefore, the second substantial question of law has also been raised. 13. On the contrary, the submission of Sri Parthasarathy, learned counsel for the respondent-assessee is that the Tribunal is fully justified in allowing the appeal for the simple reason that it is by now well-settled on authority of law that in an application under section 12A, the Commissioner is on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thasarathy that the manner of acquiring of funds is a matter which is necessarily to be examined at the stage of assessment by the Assessing Officer and that could not have weighed before the Commissioner for refusing registration. 16. We are of the view that the applicant before the Commissioner did impart education in terms of section 12A, as it is not in dispute that one of the objects or even the main object of the trust is imparting education. It is also not in dispute that the trust is imparting education and it is not as though some other activity which is not in the nature of education is sought to be passed off in the name of education. So long as the trust has education as one of its objects which is one of the enumerated he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dismissed. 18. However, with regard to the other question sought to be agitated viz., the second question, we find it is academic, as it is submitted this question does not actually arise from the order of the Tribunal which is impugned in this appeal. 19. It is also submitted by Sri Parthasarathy, learned counsel for the assessee that the Tribunal had independently examined this question and passed orders through a subsequent order on an application filed by the assessee under section 252(4) of the Act. Be that as it may, neither that order is under appeal nor the question is before us and as the question posed is not one arising out of the present order in appeal, it is not necessary for us to examine this question, as it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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