2012 (12) TMI 241

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..... Act, 1961.     2. That on the facts and circumstances of the case and in the law, the C.I.T. has grossly erred in failing to appreciate that the assessee trust has been incorporated essentially for the purpose of providing education which is per se a charitable purpose accompanied by other charitable objectives, that the usage of trust fund shall remain dedicated to the objectives of the trust and that in the event of dissolution the property and other assets of the trust shall be transferred only to another trust having similar aims and objectives clearly entitling the assessee trust for registration u/s. 12A(a) of the Act.     That the appellant craves leave to add to and / or amend, modify or withdraw the .....

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..... ther show that aspirants are paying for their cost of learning. Ld. Commissioner of Income Tax has held that the trust was thus to be seen to be working or commercial purpose and it does not fall in the definition of charitable purpose as defined in clause (15) of section 2 of the I.T. Act, 1961. From the above, Ld. Commissioner of Income Tax (A) observed that there is no single reason, that would support issuance of registration to the trust. Therefore, application dated 10.10.2011 filed by the trust for registration u/s. 12A(a) was rejected. 5. Against the above order the assessee is in appeal before us. 6. We have heard both the counsel and perused the records. We find that no case has been found out that assessee has been using the fu .....

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..... nd if any surplus results, incidentally from the activity lawfully carried on by the educational institution, it will not cease to be one existing solely for educational purposes. Moreover, use of the surplus in further expansion of the same objects cannot be said to be proving that there is an object to make the profit by the trust. In these circumstances, in the background of the aforesaid discussion and precedents, we find that assessee should be granted registration in this regard. Accordingly, we set aside the orders of the Ld. Commissioner of Income Tax and direct the Ld. Commissioner of Income Tax to grant assessee the registration. 8. In the result, the appeal filed by the assessee stands allowed.
Case laws, Decisions, Judgemen .....

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