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TMI Blog2015 (5) TMI 752X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is more or less at par with the tuition fees prescribed by the govt. Moreover, whether the assessee is charging fees in excess or what is prescribed can be considered by the Assessing Officer while examining assessee’s claim of exemption under section 11. At the time of granting registration, the CIT has to act in accordance with the provisions contained under section 12AA of the Act. As per the said provision at the time of granting of registration, the CIT has to examine the object of the society and the genuineness of its activities. If the objects of the society are charitable and its activities are genuine, then registration cannot be refused to the assessee. The same views are supported by decisions in the case of Kusumba Dhirajlal Parekh & Lila Nautamlal Parekh Foundation [2014 (1) TMI 933 - ITAT HYDERABAD] and Lucknow Educational and Social Welfare Society [2011 (2) TMI 1185 - Allahabad High Court] - Decided in favour of assessee. - ITA No. 369/Vizag/2012 - - - Dated:- 4-3-2015 - SHRI J. SUDHAKAR REDDY AND SHRI SAKTIJIT DEY, JJ. For The Assessee : Shri C.R. Hemanth Kumar, CA For The Department : Shri Omkareswara Rao, DR ORDER Per Saktijit Dey ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me from the property held under trust or voluntary contributions. (e) The Legislature has enacted a specific provision for grant of exemption of income in respect of educational institution under sections 10(23C)(iiiab), 10(23C)(iiiad) and 10(23C)(vi) of the Act. The general provision contained in section 11 may not override the provisions of specific section. Hence, the income of the educational institution has to be examined under section 10(23C)(iiab), 10(23C)(iiiad) and 10(23C)(vi) of the Act and not under section 11 of the Act 3. Accordingly learned CIT relying upon certain judicial precedents held that as the assessee society is not established for charitable purpose cannot be granted registration under section 12AA of the Act. Accordingly, he rejected the application filed by the assessee. Being aggrieved of the said decision of the learned CIT, assessee is in appeal before us. 4. The learned Authorised Representative submitted that at the time of granting registration under section 12AA of the Act, the CIT is required to only examine the object of the society and genuineness of its activities. He cannot go into the entitlement of exemption under section 11 at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Extra fee charged by the assessee is towards computers and laboratory facilities. The learned Authorised Representative submitted that the view expressed by the CIT that relief to poor is a pre condition for any activity to come under the purview of sec. 2(15) of the Act is also not the correct view as expression charitable purpose as defined under section 2(15) also include other activities like education, medical relief etc. Even otherwise also the assessee has also granted concession in fees to the students who cannot afford. 5. Contesting the finding of the CIT that as the assessee is not holding any property under the income from which would be exempt under section 11, it is submitted by the learned Authorised Representative that the objects of the assessee is to run educational institutions. Hence any income derived therefrom is also eligible for exemption. The learned Authorised Representative submitted, the ratio of the decisions relied upon by CIT will not apply to the facts of the present case. 6. The learned Authorised Representative relied on the following decision: Institute Electronic Engineers Inc. V. DIT 147 ITD 263 Kusumba Dhirajlal Parekh Li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income from property or voluntary contributions. The income of the educational institution has to be examined under section 10(23C)(iiiab), 10(23C)(iiiad) and 10(23C(vi) of the Act and not under section 11. 10. Before deciding whether the aforesaid reasons are good enough to deny registration to the assessee, we have to look at the meaning of charitable purpose as defined under section 2(15) of the Act. The same is extracted hereunder: Section 2(15) charitable purpose includes relief of the poor, education, medical relief, [preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest,] and the advancement of any other object of general public utility: Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demonstrated before us by referring to the relevant G.O issued by the Govt. that fees charged by the assessee is more or less at par with the tuition fees prescribed by the govt. Moreover, whether the assessee is charging fees in excess or what is prescribed can be considered by the Assessing Officer while examining assessee s claim of exemption under section 11. At the time of granting registration, the CIT has to act in accordance with the provisions contained under section 12AA of the Act. As per the said provision at the time of granting of registration, the CIT has to examine the object of the society and the genuineness of its activities. If the objects of the society are charitable and its activities are genuine, then registration cannot be refused to the assessee. On the basis of the facts and materials on record, it is clear that one of the objects of the assessee is imparting education and the assessee is carrying out such objects by establishing an educational institution for imparting education in intermediate course. Therefore, there is no doubt that the objects of the assessee are charitable in nature. The allegation of the learned CIT that the assessee cannot be cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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