9911796707
TMI Blog2012 (6) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... was declined by the Commissioner of Income Tax, Bathinda (for short "the CIT") vide order dated 25.9.2009. The CIT came to the conclusion after examining the income and expenditure account and the balance sheet for the period ending on 31.3.2006, 31.3.2007 and 31.3.2008 that the society had received donations and the capacity of donors and genuineness of the transactions have not been explained. The CIT while noticing that the society was running a Polytechnic College further took into consideration that the society was earning profits for the last two years and had claimed exemption under Section 10(23C) of the Act. The reasons to switch over to Section 11 of the Act remained unexplained for claiming exemption under Section 12AA of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivities relating to education which have not been considered while declining the application under Section 12AA of the Act. It was further held that the CIT should have only seen the genuineness of the activities of the society and circular No.11/2008 dated 19.12.2008 was also referred that the provisions of Section 2(15) of the Act are not applicable to a society. Accordingly, it was held that nature and scope at the stage of grant of registration under Section 12AA of the Act is to only regarding the objects of the society. The Tribunal also distinguished the provisions of Sections 10(23C) and 12AA of the Act and scope of the said sections and held that it was open to the revenue authorities while processing the return of the income of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsonance with the objects of the trust or institution and where education is being imparted as per the rules and the factum of the establishment and running of schools is not disputed the same was a genuine activity and the enquiry regarding genuineness of the activities cannot be stretched beyond this. 7. In view of above facts and circumstances, it would be clear that respondent-society which was admittedly running a Polytechnic College and the activities were interwoven for furthering the projects and activities pertaining to education, the Tribunal rightly directed that registration should be granted to the respondent-society with the rider that the same could always be cancelled if it came to the notice of the CIT that the society was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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