Case Law Details
Fateh Chand Trust & College Committee Vs CIT (Exemption) (ITAT Agra)
Department Can Examine Only Object of the Trust and Not Application of Income at the Time of Granting of Registration of Trust
FACTS –
Assessee is society, engaged in running and maintenance of Fateh Chand Inter College. College is fully aided by UP Government and is engaged in imparting students free of cost. The payment of Salary to teaching staff is governed by the provisions of payment of Salary Distribution Regulation 1971 and the same is borne by the State Government.
Revenue objected that huge sum of money was collected from the students as fee but same has not been shown in the income and expenditure account. Further it was also alleged that assessee is generating FD interest, rent and bank interest and accordingly CIT(E) rejected the application of the assessee for registration u/s 12AA.
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