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TMI Blog2015 (6) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... l is fortified by the judgment of of T.M.A. Pai Foundation v. State of Karnataka [2002 (10) TMI 739 - SUPREME COURT] and in Islamic Academy v. State of Karnataka [2003 (8) TMI 469 - SUPREME COURT]. A useful reference can also be made in Mohini Jain v. State of Karnataka [1992 (7) TMI 330 - SUPREME COURT] and in P.A. Inamdar v. State of Maharashtra [2005 (8) TMI 614 - SUPREME COURT]. The jurisdictional High Court in Dawn Educational Charitable Trust [2014 (3) TMI 149 - KERALA HIGH COURT] held that when the school is running on commercial lines under cloud of charitable purpose, the rejection of application for registration is justified. Since the material available on record clearly suggests that the educational institution is being run i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee trust. Referring to the order of the Administrative CIT, the learned counsel submitted that there is no violation of s. 11(5) or s. 13(l)(c) as claimed by the Administrative CIT. No money of the trust was taken by the trustees at any time. The educational institution is not collecting any capitation fee as claimed by the Administrative CIT. According to the learned counsel, what is to be seen at the time of registration is the object of the trust and its genuineness. Since the object of the trust is to establish an educational institution and the assessee has, admittedly, established an educational institution, the administrative CIT cannot refuse the registration under s. 12AA of the Act. 4. On the contrary, Shri M. Anil Kum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecting capitation fee over and above the fee prescribed for admission of the students. Similar admission was also made by one Shri Sainulabdeen, the secretary of the trust, in his sworn statement dt. 27th April, 2012. It is also on record to show that the capitation fee collected for admission of the student over and above the prescribed fee was shared amongst the trustees. In view of the overwhelming material available on record, it is obvious that the trust is running the educational institution in a commercial manner for profit. 6. The question arises for consideration is when the educational institution was run in a commercial manner by the so-called charitable institution, whether such a trust is entitled for registration under s. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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