9911796707
TMI Blog2015 (6) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... return of income in the regular course. The assessee has not filed any application for registration under s. 12AA also. However, there was a search in the premises of the assessee. Consequent to the search operation, the assessee filed the return of income. The claim of the assessee for exemption was rejected on the ground that the trust was not registered under s. 12AA of the Act, therefore, the assessee filed application for registration. 3. According to the learned counsel, the assessee is a charitable trust. The assessee established an educational institution in the name of Travancore Engineering College at Oyoor. Establishing and running educational institution is one of the objects of the assessee trust. Referring to the order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons on either side and also perused the material available on record. Establishing and managing educational institution is one of the objects of the trust as per the bye-laws. At the initial period, the assessee has not applied for registration and also failed to file the return of income in the regular course Therefore, a search operation in the premises of the assessee was carried out. During the course of search operation several incriminating materials were found which disclosed the receipt of capitation fee for admission of students over and above the prescribed fee. The treasurer of the trust Shri Shajahan has admitted in his sworn statement dt. 26th April, 2012 that the trust is collecting capitation fee over and above the fee prescr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 005] 6 SCC 537. The jurisdictional High Court in Dawn Educational Charitable Trust [IT Appeal No. 300 of 2013] by judgment dt. 12th Feb., 2014 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 in a commercial manner, this Tribunal is of the considered opinion that the assessee is not entitled for registration under s. 12AA of the Act. Therefore, we do not find any infirmity in the order of the lower authority. Accordingly, the same is confirmed. 7. In the result, the appeal of the assessee stands dismissed. Order pronounced in the open co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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