9911796707
TMI Blog2012 (11) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... Trust under sec. 12AA of the Income Tax Act, 1961 by applying the provisions of section 12AA(1)(b)(ii) on the alleged ground that the appellant institution has not satisfied the worthy CIT with the genuineness of activities and as the surplus profits are not in consonance with the intent and spirit of provisions of section 12AA. 2. The appellant craves, leaves to alter and add to substitute any ground of appeal before or at the time of hearing.." 3. The brief facts in the present case are that the assessee filed an application in Form No.10A on 14.01.2011. It was noticed by the Ld. CIT that the assessee is having excess of income over expenditure in excess of 15% in some years. The Ld. CIT has noticed during the assessment years 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 before the Hon'ble Supreme Court of India in this case. On a similar issue in the case of CCIT, Amritsar vs. Ajanta Educational Centre, the department has filed Special Leave Petition SLP Civil No.4445/2011 before the Hon'ble Supreme Court of India against decision dated 20.05.2010 of Hon'ble Punjab & Haryana High Court. In both the cases SLPs are pending before the Hon'ble Apex Court. In view of the above, I am of the considered view that the assessee institution has not satisfied me with the genuineness of its activities and as the surplus profits as mentioned above are not in consonance with the intent and spirit of provisions of section 12AA and provisions of section 12AA(1)(b)(ii) are applicable in this case. Keeping in view the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on is filed by an Educational Institution the scope of inquiry is restricted only to ascertain the genuineness of the activities of such institution. The fact that an institution has earned profit would not be deciding factor to conclude that the educational institution exists for profit. Even if there remains a surplus at the hands of the educational institution, it would be entitled to exemption under section 10(23C)(vi) provided the Educational institution solely exists for educational purposes. 5. The Ld. counsel for the assessee, Sh. R.K. Gupta, CA, relied upon the decision of the Hon'ble Punjab & Haryana High Court in the case of CIT, Bathinda vs. M/s. Baba Deep Singh Educational Society, Bathinda, in ITA No.881 of 2010 dated 13.10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amily trust. The assessee is charging tuition fee at a very high rate to have a control of the family itself. The Ld. CIT(DR) relied upon the order of the Ld. CIT, Bathinda. 7. We have heard the rival contentions and perused the facts of the case. As regards the amendment to the Trust Deed or managing of the Trust by the family members are not the issue which has been raised by the Ld. CIT in its order dated 20.07.2011. Therefore, the argument of the Ld. CIT(DR) cannot be taken cognizance. 7.1. As regards the surplus of the Trust, which had arisen during the assessment years 2007-08 & 2008-09 by 50.45% & 29.63% of the total receipts of the assessee, we are convinced with the arguments made by the Ld. counsel for the assessee and the relia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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