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TMI Blog2011 (10) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to as "the Tribunal") wherein the ITA No.1905/Del/2009 filed by the respondent was allowed and the Tribunal set aside the order of the Commissioner of Income-tax, Rohtak by which application filed by the respondent under Section 80G(5) (vi) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") dated 13.10.2008 was rejected. The Commissioner of Income, Rohtak while rejecting the said application based its order on the ground that respondent society which is running five educational institutions, namely, (i) Gaur Brahaman Central School, (ii) Gaur Brahaman Degree College, (iii) All India Gaur Brahaman College of Education, (iv) All India Gaur Brahaman Sanskrit College and (v) Gaur Brahaman Aayurvedic College and was charging f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is no dispute that the application for approval in Form 10G along with required documents has been filed and as per assessment of the last three years, it was seen that though the assessee derived income yet such income was held not liable to inclusion in total income as per Sections 11 and 12 of the Act. Reference has also been made to Section 2(15) of the Act to hold that the education is per se charitable purpose irrespective of the fact that for imparting education, the assessee charges fee and there is no condition to hold that to become eligible for charitable purposes in respect of imparting education, the same should be imparted freely or without charging any fee. 6. The Revenue aggrieved against the said order of the Tribunal h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determining the 'property held under trust' in the case of the applicant society that 'income from property held under trust' would be exempted u/s 1 & 12 of the Income Tax Act?" 7. A perusal of the Rule 11AA of the Income Tax Rules, 1962 goes to show that application for approval of any institution under Clause (vi) of sub-section (5) of Section 80G should be in Form 10G and the following documents are necessary as per clause (2) of the said Rule. "(i) Copy of registration granted under section 12A or copy of notification issued under section 10(23) or 10(23C); (ii) Notices on activities of institution or fund since its inception or during the last three years, whichever is less; (iii) Copies of accounts of the institu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goes to show that the discretion of the Commissioner is to consider whether the conditions prescribed above are satisfied from the application. This Court in Sonepat Hindu Educational & Charitable Society v. CIT [2005] 278 ITR 262/147 Taxman 1 (Punj. & Har.) has held that where the petitioner society has been regularly allowed exemption under Section 80G and especially where it is registered under Section 12A for charitable purposes then the position has to be sustained and not changed in subsequent years without any sufficient proof that the institution is not carrying its activities in furtherance of its object. The relevant observations of the Division Bench in Sonepat Hindu Educational & Charitable Society's case (supra) are as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnational Charitable Trust v. Union of India [2010] 327 ITR 73/188 Taxman 402 (Punj. & Har.). 10. That in the said case a Division Bench of this Court while examining the provisions of Section 10 (23C) (vi) of the Act and after considering the judgments of Hon'ble Supreme Court in Addl. CIT v . Surat Art Silk Cloth Mrs Association [1980] 121 ITR 1/[1979] 2 Taxman 501 and Aditanar Educational Institution v. Addl. CIT [1997] 224 ITR 310/90 Taxman 528 has held that merely if an institution is making a profit it would not render itself ineligible for registration under the provisions of Section 10 (23C) (vi) of the Act. The said principle can also be fully applied to the facts and circumstances of the present case. Merely, because there ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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