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TMI Blog2018 (6) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... rti And Deepak Jain For The Respondent : Sh. Manjit Singh, Sr . DR ORDER Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 29.04.2016 of the Commissioner of Income Tax (Exemptions), Chandigarh [hereinafter referred to as CIT(E) ], whereby, he has rejected the application of the assessee seeking registration u/s 12AA of the Income-tax Act, 1961 (in short 'the Act'). 2. The brief facts of the case are that the assessee Trust filed an application on 8.10.2015 seeking registration u/s 12AA of the Act . It was submitted that the object of the assessee trust was to provide education, medical and other facilities at large to the public without any distinction of caste or creed on a non-profit basis. That the assessee has started a school namely Cambridge International School and the assessee, therefore, is providing and carrying out educational activities which falls within the definition of Charitable purposes as provided u/s 2(15) of the Income Tax Act. The Ld. CIT(E), however, observed that so far as no activity had been carried out by the applicant-trust in respect of its other state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not get corroborated. He, therefore, rejected the application of the assessee moved u/s 12AA of the Act. 3. Being aggrieved from the above rejection of the application by the CIT(E), the applicant trust has come in appeal before us. 4. We have heard the rival contentions and have also gone through the records. The Ld. Counsel for the assessee has submitted that assessee is a public charitable trust and is carrying educational activities which falls within the definition of charitable activity as provided u/s 2(15) of the Act. He has further submitted that the trust deed explicit that strict conditions have been imposed for restricting any of the trustees from taking any personal benefit from trust property. That mere fact that both the trustees are from the same family will not change the character of the trust as long as the objects and other terms are clearly defining the trust as a public charitable trust. That after incorporation, the trust has moved towards achievement of its charitable objectives and has started to establish a school in pursuance to its object of education. That the trustees have leased out their personal land in the school for long period of 99 years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia includes educational activity and the assessee has proceeded to set up a school in pursuance of its main object of educational activity which is duly included in the definition of charitable purposes as defined u/s 2(15) of the Act. The Ld. CIT (E) has not pointed out any clause in the trust deed or otherwise which may point out about the distribution of profits or net assets to the members in the case of dissolution of the trust. The Ld. Counsel has invited our attention to clause (9) of the trust deed, which reads as under:- 9. Conditions:- a) The income and property of the trust shall be applied solely towards the promotion of the objectives of the trust as set forth in this Trust Deed and no proportion thereof shall be transferred directly or indirectly to any member / trustee of the Trust. b) No member of the board of Trustee of the Trust shall be entitled to any salaries. No office bearers of the Trust shall draw any salary for their services rendered to the Trust. c) The Trust is required to apply its surplus, if any, for promoting its objectives. d) In case of dissolution or otherwise winding up of this trust all the Assets, interests etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Bench in the case of NLB Charitable Trust Vs. CIT [2010[ 38 SOT 291. So far as the objection that the applicant had not furnished any reliable evidence of carrying out its charitable activity of education, the Ld. counsel has submitted that the trustee is its inception stage and has started providing primary education and further that the building of the school has been constructed after taking loan from the bank and for which purpose, the founders of trust have mortgaged their private property. He in this respect has relied upon the Certificate of the Canara Bank placed at page No. 16 of the paper book. Further, reliance has been placed on various cutting of news items placed in paper book showing that the applicant trust has started its activities by way of running a school namely Cambridge International School at Sangrur and these news items have covered the various educational and extra-curricular activities, events organized at the school. 9. We have gone through the aforesaid case laws relied upon by the Ld. Counsel for the assessee and have found that the Coordinate Beach of the Tribunal has ruled that there was not bar under the Act for registration u/s 12AA of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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