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TMI Blog2012 (12) TMI 1031X X X X Extracts X X X X X X X X Extracts X X X X ..... ducational activity. It has also not been brought on record that the fees collected by the assessee was for any other object-except that mentioned in the objects of that society. Sec. 12AA does not speak anywhere that the CIT, while considering the application for registration, shall also see that the income derived by the trust or the institution is either not being spent for charitable purpose or such institution is earning profits. In these circumstances, CIT was not justified in refusing registration under sec.12AA to assessee. His observation with regard to alleged accounting irregularities are not relevant for deciding the issue of registration. As perused the Trust Deed of the Assessee-Trust. In our opinion, nature and activiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above grounds of appeal. 2. Assessee-Trust made an application for registration u/s. 12A of the Income Tax Act, 1961 (Act) in form No. 10A on 02-12-2010. On 09-06-2011, a notice for hearing for verification of documents was issued to the assessee from the office of Commissioner of Income Tax-III, Nagpur. On 24-06-2011, an order u/s. 12AA of the Act was passed by the CIT rejecting the registration of application of the assessee. 3. In his order, he held that the appellant-trust was primarily engaged in managing an institution which offered Bachelor of Architecture course, that there was no other activity of the trust, that the final accounts of the trust and the college were drawn up separately while the portion of receipts and expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for educational purpose but for commercial purpose. 4. Before us, during the course of hearing, Authorised Representative (AR) of the assessee submitted that assessee did not want to press Ground No.1. Considering the fact, Ground No.1 is treated as dismissed. 5. With regard to Ground No.2, AR submitted that Trust had initiated a course of Bachelor of Architecture, institution that was duly affiliated to the Nagpur University, that it was duly approved by the All India Council for Technical Education and Council of Architecture, that fee charged by the institution were according to the approval of the Shikshan Shulka Sammiti, New Delhi - a Central Government Department set up to monitor fee charged by the educational institutions, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yan Educational Society v. CIT [2005] 93 ITD 546 (Delhi) Departmental Representative (DR) relied upon the order of the CIT-III, Nagpur. 6. We have heard the rival submissions and perused the material put before us. The un-disputed facts of the case are that the assessee-trust had initiated a bachelor degree in the field of Architecture and the college was affiliated to the University of Nagpur, that All India Council of Technical Education (AICTE) and Council of Architecture had approved the course initiated by the assessee Trust. The fee structure of the appellant-Trust was decided and monitored by a Central Government Department and admission to the course was through a Common Entrance Exam. Thus, Government agencies had control over t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to look at the object of the trust, when the same is reduced into writing in the form of trust deed. In our opinion, whether part of the income is exempt or not is irrelevant for the registration of the institution. This issue is relevant only when the assessment of a particular assessment year is made by the AO. For the registration of the institution, the CIT has to satisfy himself about the object of the institution and genuineness of the activities of the institution and not about the nature of the income. If the object of the institution falls within the definition of charitable purposes under section 2(15) of the Act and the institution is genuinely carrying out such object, the CIT must grant registration to the institution. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be examined at the stage when the Trust files its return. AR has rightly emphasised that none of the objects was against public policy and the main activity of the trust was to provide education to students of architecture as per the course approved by the appropriate authorities and the admission policy, the fee structure endorsed by the Government of India. The objects, therefore, cannot be said to be the objects, which run against public policy or do not fall within the category of activities, which are for charitable purposes. Education in itself is a charitable purpose and activities related thereto, cannot, in any manner, be described as a non-charitable purpose or much less a non-educational activity. It has also not been brough ..... X X X X Extracts X X X X X X X X Extracts X X X X
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