2011 (6) TMI 1006

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..... inst the order of the Commissioner of Income-tax at Salem passed under section 12AA of the Income-tax Act, 1961 through his proceedings dated 25-8-2009, rejecting the application of the assessee for grant of registration under the Income-tax Act, 1961 as a charitable institution. 2. The assessee trust is running a matriculation school, both in English and Tamil medium and also running a teacher .....

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..... trust is interested in making profits is that the assessee had provided free bus service to students studying in Tamil medium to attract more students and thereby collecting more income. He also pointed out that the assessee has established a teachers training institute, again for making profit out of the said activity. 5. Except making such general observations, the Commissioner of Income-tax .....

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..... f making profit. Actually the assessee has provided free bus service to sustain the Tamil medium school, as otherwise students will not come forward to join the school. Likewise the assessee has started another institution of teachers training institute which is also essentially a part of educational activity. There is nothing on record to show that the said training institute has been established .....

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..... basis to support the finding of the Commissioner of Income-tax that the assessee trust has been established with the motive of earning profit. 8. Another reason pointed out by the Commissioner of Income-tax is that out of 14 trustees, only two trustees are authorized to run the administration of the assessee trust including the management of financial matters. This is quite common everywhere. A .....

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..... assessee trust is not sustainable in law. 11. In the facts and circumstances of the case we direct the Commissioner of Income-tax to grant registration to the assessee trust under section 12AA. 12. In result this appeal filed by the assessee is allowed. Order pronounced in the open Court at the time of hearing on Thursday, the 9th day of June, 2011 at Chennai. - - TaxTMI - TMITax - .....

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