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TMI Blog2011 (10) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... ses. The stage for application of income is yet to arrive i.e. when such Trust or Institution files its return. - Decided against the revenue. - IT Appeal Nos. 701 of 2010 and 189 of 2011 (O & M) - - - Dated:- 5-10-2011 - HEMANT GUPTA AND G. S. SANDHAWALIA, JJ. Ms. Urvashi Dugga for the Appellant. JUDGMENT Hemant Gupta, J This order shall dispose of ITA No. 701 of 2010 and ITA No. 189 of 2011, wherein the learned Income Tax Appellate Tribunal, Chandigarh (for short 'the Tribunal'), granting registration to the respondent under Section 12AA of the Income Tax Act, 1961 (for short 'the Act'), for carrying on its object of establishing educational Institutions. 2. The question raised in both the appeals is identical, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied out in one day i.e. on 19.1.2009, the Commissioner found that when the Society is paying reasonable salary/wages to its workers than to have the objective of arranging help and aid for the family of the workers can be good activity, but it cannot be considered as charitable activity for public at large. The Commissioner concluded as under:- "From the above, it is appropriate to conclude that all the money, time and energy of the society is geared towards establishing educational institutes. It seems that a meager amount of Rs.1500/- has been spent towards donation in an attempt to strengthen its claim for registration under Section 12A of the IT Act. If all the facts are analysed in a dispassionate manner, it really points to realizat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nance Act, 2004, which contemplated that where registration had been granted to a Trust or Institution and subsequently the Commissioner is satisfied that the activities of such Trust or Institution are not genuine or are not being carried out in accordance with the objects of the Trust or Institution, the Commissioner is empowered to cancel the registration to such Trust or Institution. On such basis, the learned Tribunal set aside the order passed by the Commissioner and the ordered granting of registration to the respondent. 7. Learned counsel for the appellant has relied upon a judgment of the Madras High Court reported as CIT v. Devi Educational Institution [1984] 18 Taxman 221 (Mad.)/[1985] 153 ITR 571, to contend that before an edu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the income as specified therein shall not be included in the total income of the previous year of the person in receipt of the income derived from the property held under the Trust wholly for charitable or religious purposes, whereas Section 12 of the Act, deals with the contributions received by the Trust or an Institution, established for charitable and religious purposes, receiving contribution, shall not be an income in terms of Section 11 of the Act. The benefit of Sections 11 and 12 of the Act, are available only if such Trust or Institution is registered under Section 12AA of the Act. 10. On the other hand, Section 10(23C) of the Act are the provisions of the Act in substitution of the earlier provisions of Section 10(22) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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