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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 ..... d as under: 1. On the facts and circumstances of the case and in law, the order passed by Commissioner of Income Tax (Exemption) is erroneous and bad in law. 2. On the facts and circumstances of the case and in law, the Commissioner of Income Tax (Exemption) erred in rejecting the application for registration u/s 12 AA of the Income Tax Act, 1961 3. On the facts and circumstances of the case and in law, the Commissioner of Income Tax (Exemption) erred in not allowing the registration of the appellant u/s 12 AA of the Act. 4. On the facts and circumstances of the case and in law, the reasons given by Commissioner of Income Tax (Exemption) for rejecting the application of the appellant for registration u/s 12 AA of the Act are erroneo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 2.2 In view of the observations, the Ld. CIT concluded that the company is engaged in commercial activity. The learned CIT held that the charitable nature of the objectives and genuineness of the activities of the institution could not be established and accordingly, he rejected the registration of the assessee company under section 12AA of the Act. 3. Before us, the Ld. counsel of the assessee fileda paper-book containing pages 1to 123. The learned counsel referred to copy of the certificate of recognition by the Insolvency and Bankruptcy Board of India (IBBI) available on page 81 of the paper-book and also referred education courses recognized by the IBBI. The Ld. counsel submitted that the assessee is engaged in imparting education ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ording to him, the students who aspire to be valuers are given coaching by the faculty of 'Institution of valuers' at the premises of 'Institution of the valuers'taken on rent by the assessee. He submitted that no worthwhile activity has been carried out by the assessee except getting fee from the aspiring students and transferring the same to the institution of the valuers and their faculties. Accordingly, he submitted that the assessee does not deserve for registration under section 12AA of the Act. 5. We have heard rival submissions and perused the relevant material on record. As far as registration under section 12AA of the Act is concerned, the following conditions must be satisfied: (a) the objective of the entity should be of char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actual carrying out of such advancement of any other object of general public utility; and (ii) the aggregate receipts from such activity or activities during the previous year, do not exceed twenty per cent of the total receipts, of the trust or institution undertaking such activity or activities, of that previous year;" 8. Before us, the assessee has claimed that it existed for the objective of imparting education, which is falling under main limb of section 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d inthe process make you wiser though poorer. If you visit anight club, you get acquainted wit and add to your knowledgeabout some to the not much revealed realities and mysteriesof life. All this in a way is education in the great schoolof life. But, that is not the sense in which the word"education" isused in clause (15) of section 2. Whateducation connotes in that clause is the process of trainingand developing 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 det ..... X X X X Extracts X X X X X X X X Extracts X X X X
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