CIT Vs Yadvindra Public School (Punjab and Haryana High Court)
Punjab and Haryana High Court held that benefit of section 12AA of the Income Tax Act cannot be denied to the institute that is duly registered as educational trust and earning in utilised for the purpose of advancement of education.
Facts- The respondent/assessee had challenged the refusal of registration of the association u/s. 12 AA of the Act, passed by CIT. The Commissioner of Income Tax observed that the society had not been carrying on with any charitable activity as the society was not imparting education as a charitable purpose within the meaning of Section 2 (15) of the Act. The society had already been granted approval u/s. 10 (23)(vi) of the Act but mere approval does not automatically entitle the assessee to registration u/s. 12AA of the Act.
Conclusion- Held that the institute has been able to satisfy that it has already been registered under Section 10 (23) (vi) to be an educational institute and Section 12AA pertains to registration of the trust. Since the respondent institute is a duly registered educational trust and whatever earnings it receives are also utilized for the purpose of advancement of education, the institution could not have been denied the benefit of Section 12AA.
