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TMI Blog2014 (10) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... ivity as a commercial organization - The assessee has already enrolled students in the school. The hon'ble jurisdictional high court in DIT(E) vs M/s Seervi Samaj Tambaram Trust - [ 2014 (2) TMI 32 - MADRAS HIGH COURT ] has held that registration u/s 12AA of the Act ought not be refused on the ground of non-commencement of charitable activities. Lack of genuineness in the assessee s activities as well - We accept the assessee s contentions and hold it entitled for registration u/s 12AA of the Act. Needless to say, the issue of commercial activities and lack of genuineness abovesaid are left to be examined in the course of assessment as per law. - Assessee s appeal is allowed. - SHRI A. MOHAN ALANKAMONY AND SHRI S. S. GODARA, JJ. Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny immovable and/or immovable properties, any right, title, interest with privileges therein for the purpose of objects of the Trust and to lease, let on hire, mortgage or otherwise dispose of any properties movable or immovables. iii) To establish. maintain, run, develop, improve, extend. grant donations for and to aid and assist in the establishment, maintenance, running, development, improvement and extensions of libraries, reading rooms, recreation centres and all other facilities as are calculated to be of use in imparting education to the public. iv) to establish, promote, maintain, run, develop, acquire, take over, improve, extend, aid, assist, donate in cash or kind to hospitals, clinical and medical helps, homes for aged and feedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere charitable in nature as per definition u/s 2(15) of the Income-tax Act, 1961. The trust filed its reply to the questionnaire on 28/01/2014. The reports of the lower authorities were also obtained and perused. The case was posted for hearing on 04/03/2014 in response to which Shri. Saravanan, managing Trustee and Shri. Murugappan, Trustee alongwith Shri. A.R. Lakshmanan, Chartered Accountant appeared and the case was heard. From the particulars appended alongwith the application and the details furnished during the course of hearing, it is seen that the trust is not approved by State Government. Further, though as per the trust deed a number of charitable activities have been shown as objects of the trust, no charitable activities were c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for running educational institutions. We find from page 43 of the paper book that the Directorate of Tamil Nadu Matriculation Schools, Chennai has already accorded approval on 4.3.2014 permitting the assessee to open a school for LKG to VIIIth class from academic year 2014-15. Therefore, the first objection does not survive. 4. The CIT s next reasons quoted are that the assessee has not commenced its charitable activities and its activity as a commercial organization. He holds that the assessee has already enrolled students in the school. The hon'ble jurisdictional high court in DIT(E) vs M/s Seervi Samaj Tambaram Trust - Tax Case Appeal No.579 of 2013 decided on 27.1.2014, has held that registration u/s 12AA of the Act ought not be re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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