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TMI Blog2019 (10) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... accordance with law. Alternatively, CIT(E) may also examine eligibility of the assessee for registration under the fourth limb of charitable purpose, i.e., advancement of general public utility in accordance with law, if raised so by the assessee. It is needless to mention that the assessee shall be afforded adequate opportunity of being heard. The grounds raised by the assessee are accordingly allowed for the statistical purposes. Appeal of the assessee is allowed for statistical purposes. - ITA No.5787/Del/2019 - - - Dated:- 18-10-2019 - Sudhanshu Srivastava, Judicialmember And Shri O.P. Kant, Accountant Member For the Appellant : Shri Amit Goel, Adv. For the Respondent : Shri Kanwal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Briefly stated facts of the case are that the assessee has been incorporated on 19/12/2017 under section 8 of the Company Act, 2013 as a non-profit organization. The assessee has claimed that it is recognized as Registered ValuersOrganization in terms of Rule 13 of the Companies (Registered Valuers and Valuation) Rules, 2017 for valuation of class of assets consisting of land and building, plant and machinery and securities or financial assets. 2.1 The assessee filed application before the Ld. CIT(E) seeking registration in terms of section 12AA of the Act. The learned CIT(E) examined the objectives and activities of the assessee for the purpose of granting registration under section 12AA of the Act. The Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain limb of section 2(15) of the Act. The Ld. counsel also referred that the assessee company has been incorporated under section 8 of the CompaniesAct which prescribe formation of the companies with charitable objects. He also referred to the Memorandum of Association of the company and submitted that object of the company is for the benefit of the general public and not for the profit motive. He referred to clauses 5(i), 5(ii), 6, 10, and 11 of the Memorandum of Association to stress that the company exists only for charitable purposes and not for profit motive. In support of his contention, the Ld. Counsel relied on following decisions: 1. ICAI Accounting Research Foundation Vs. Director- General of Income-tax (Exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned, the following conditions must be satisfied: (a) the objective of the entity should be of charitable nature (b) the activities of the entity should be genuine. 6. In the instant case, the learned CIT(E) has held that charitable nature of the objectives and genuineness of the activities have not been established. Therefore, the issue before us is whether the assessee fulfilled both the conditions for registration under section 12AA of the Act. 7. As far as the first condition is concerned, the objective of the assessee should be of charitable nature. The charitable purpose has been defined under section 2(15) of the Act to include relief to poo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 2(15) of the Act and proviso is not applicable over the said limb of definition of charitable purposes, whereas according to the learned CIT, the assessee is engaged in the commercial activity, which are of the nature of trade, commerce or business. We not that the Hon ble Supreme Court in the case of Sole Trustees, LokaShikhana Trust Vs CIT (1975) 101 234 (SC) has explained the word education with reference section 2(15) of the Act as the process of training and developing the knowledge, skill mind, and character ofstudents by formal schooling. The relevant paragraph of the decision of the Hon ble Supreme Court to reproduced as under: The sense in which the word education has beenused in sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oping the knowledge, skill mind, and character ofstudents by formal schooling. [469C-F] 9. Before us, the Ld. counsel of the assessee has submitted that it is an organizationrecognized under the Companies (Registered Value and Valuation) Rules, 2017 and conducting the education courses in valuation in accordance with the syllabus determined under the rules for the students registered as member under prescribed rules and same also include practical training. The assessee has also filed a copy of recognition certificate, which is available on page 81 of the paper book .The learned CIT(E), however, has treated the activity of the assessee akin to coaching classes. In our opinion, the learned CIT has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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