9911796707
TMI Blog2012 (2) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... In this appeal filed by the assessee, its grievance is that it was denied registration under Section 12AA of Income-tax Act, 1961 (in short the Act ) despite its object being in conformity with the requirement of the Act for registration under the said Section. 2. Short facts apropos are that assessee filed in application in Form No.10A on 30.12.2009 before ld. DIT(E), Chennai, for registration under Section 12AA of the Act. Ld. DIT(E) required the assessee to give certain clarifications and to cure certain deficiencies which were there, in his opinion, in the said application. Assessee appeared and furnished its explanation. However, ld. DIT(E) denied the registration sought, on account of two reasons. First was that two of the object ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l to the attainment of the objects. 4. Per contra, learned D.R. submitted that the learned DIT(E) was well justified in denying registration sought under Section 12AA of the Act in view of the clear religious nature of the objects and commercial nature of collecting fees from students. 5. We have perused the order of ld. DIT(E) and heard the rival submissions carefully. Objects clause of the Trust as mentioned by the assessee in its grounds of appeal are reproduced hereunder:- (1) To carry on activities for the upliftment and development of tribal education, standard of living healthcare, housing and availability of Nutritional food in the society. (2) To undertake agricultural research and development and publication of the resea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve to the attainment of the above objects or any one of them. (18) To undertake such other activities as may be necessary for the promotion of the objects of the trust. (19) To build up centres, afford free education and training in arts, crafts and technical subjects to the economically poor and backward people to prepare them for earning their own livelihood. (20) To give funds, Sponsorship and distribution of awards and Ph.d Research and Development. (21) Anthro Biometric based and Ancient Geometry based matter of child hospital and medical college. Ancient culture development and Ancient Geometry research and Ancient Music Instruments. The two clauses cited by ld. DIT(E) for denying registration to the assessee appear at (7) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l activity. Only when such activity resulted in substantial surplus, which could question the very nature of the charitable existence of the assessee-Trust, could it be considered as a reason for viewing its charitable vows with suspicion. But that in any case is something which has to be seen in future as and when such a contingency happens if it all it happens. In our opinion, ld. DIT(E) read into the clause a future contingent happening which was best left for the Assessing Officer to consider when he took up the assessment proceedings in the ordinary course of events. Act provides for revocation of the 12A registration in such contingencies. However, we cannot say that possibility of a future contingency with a remote probability will m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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