Therefore, according to the above provisions, at the time of grant of registration or refusing to grant registration to a trust or institution, the Ld. CIT(E) shall satisfy himself about the objects of the trust and genuineness of its activities.
The Assessee-Trust is running large number of courses i.e., diploma in computer education; diploma in web and designing applications; diploma in hardware and networking, etc and is running several educational programmes at different places. The Income Tax department has refused to grant registration under section 12AA of the Income Tax Act by finding that the assessee is charging a heavy fee on the students.
The Tribunal noted that there is no question of refusing to grant registration to assessee on the basis of report of Inspector who visited Lajpatnagar property.
It was noted that the Assessee-Trust has been providing I.T. Education through different courses and thus, the objects of the Assessee-Trust are ‘Education’ in nature and Assessee-Trust carrying on genuine activities of providing education.
“In view of the above facts, the decisions relied upon by the Ld. D.R. would not support the case of the Revenue. In the case of A.R. Trust (supra), the Hon’ble Allahabad High Court referred the matter to the Ld. CIT(E) for recording the satisfaction in the light of decision of the Tribunal and to pass appropriate order. In view of the above discussion, we do not find any justification for Ld. CIT(E) to reject application for registration under section 12AA of the I.T. Act. In this view of the matter, we set aside the impugned order and restore the matter in issue to the file of Ld. CIT(E), New Delhi, with a direction to pass appropriate order under section 12AA of the I.T. Act to grant registration to the Assessee-Trust under section 12AA of the I.T. Act within one month from the date of the Order,” the Tribunal said.Subscribe Taxscan AdFree to view the Judgment