2014 (3) TMI 149

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..... :- Even if nomenclature of the trust may indicate it is meant for charitable purpose, but if activities reveal otherwise, that should weigh with the authorities who grant registration – also, while considering claim of exemption, authorities under the Act would look into the actual activity of the institution, especially main activity of the institution - In the absence of facts indicating that th .....

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..... Trust under the name and style "Dawn Educational and Charitable Trust" running a school named 'Dawn International School'. An application came to be filed seeking registration under Section 12A of the Income Tax Act so as to get income tax exemption on the ground that they are imparting education and therefore it is a trust meant for charitable purpose. Respondent authority made .....

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..... ging Trustee Dr. Johnson Luckose. Commencement of the school is in 2006 and the trust formed in 2007. The school is run in a building where air conditioned class rooms with breakfast and lunch are provided. The school is maintained and meant for benefit of children of non-resident Indians. Fee structure indicated huge amount collected even in kindergarten classes in the year 2006. For play school, .....

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..... he Bench with his stand placing reliance on the decision reported in Nedumchalil C.Trust v. Municipal Commissioner (1991 (2) KLT 180). The question that arose was whether the fact of special wards for patients who pay full price are run or that salary is paid inclusive of the expenditure for the trustees will not change the nature of the trust, i.e., charity and charitable purpose. In that context .....

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..... authorities under the Act would look into the actual activity of the institution, especially main activity of the institution. In the absence of facts indicating that the activities carried on attracts definition of charitable purpose, one cannot find fault with rejection of registration. When the school is running on commercial lines under the clad of charitable purpose, the parties were justifie .....

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