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TMI Blog2014 (7) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... ivities and objects of education of the society. Rejection of registration on the plea that genuineness and creditworthiness of donors are not shown (inspite of fact that PAN of donors were indicated) and that no evidence for not deriving any benefit covered u/s 13(3) is filed even though negative cannot be proved. For grant of registration, genuineness and creditworthiness of donors is irrelevant as Act lays down only genuineness of activities and objects of society. It is therefore prayed that registration applied u/s 12A may kindly be ordered to granted as it fulfills all the conditions as is clear from our letter dated 04.01.2014 addressed to C.I.T. Noida alongwith enclosures of 60 pages." 3. At the time of hearing before us, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer in the assessment order passed under Section 143(3) for AY 2010-11 has recorded the finding that the assessee society is running educational institution which is imparting education in backward areas. The imparting of education is a charitable activity. That the assessee society is registered with the Registrar of Societies of Uttar Pradesh and both the colleges are registered with regulatory bodies i.e., AICTE for engineering course and another college with NCT for B.Ed courses. That the fee structure of the society is decided by the prescribed relevant authorities of Uttar Pradesh through their office order every year and, therefore, the allegation of the Revenue that the assessee charged heavy fees is factually incorrect. He als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mercial engineering colleges are taking from their students. Therefore, the assessee is not carrying on any charitable activity but, on the other hand, commercial activities by running the colleges in a commercial manner. She, therefore, submitted that the CIT rightly refused the registration. His order may be upheld. 5. We have carefully considered the submissions of both the sides and perused relevant material placed before us. Section 12AA of the Act reads as under:- "12AA. (1) The [***] Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) [or clause (aa) of sub-section (1)] of section 12A, shall- (a) call for such documents or information from the trust or institution as he think ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Finance (No. 2) Act, 1996 (33 of 1996)]] and subsequently the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing cancelling the registration of such trust or institution: Provided that no order under this sub-section shall be passed unless such trust or institution has been given a reasonable opportunity of being heard.]." 6. From the above, it is evident that for the purpose of registration under Section 12A, the CIT has to satisfy himself about the object of the trust or the institution and the genuineness of its activities. It is not in dispute tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uced the evidence that it is charging the fees as approved by the prescribed relevant authorities of Government of Uttar Pradesh through their office orders every year. Therefore, the allegation of the Revenue, that the assessee is charging heavy fees or the fees is similar to being charged by commercial colleges, has neither been factually proved to be correct nor can be a basis legally in view of the Board's Circular for denying the registration of trust under Section 12A. As per Section 12AA, the CIT has to satisfy himself only about the object of the trust and the genuineness of activities. There is no dispute that the object of the trust is education and the assessee is running two educational institutions - one, for engineering course ..... X X X X Extracts X X X X X X X X Extracts X X X X
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