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Case Law Details

Case Name : CIT Vs M/s. Apeejay Education Society (Punjab & Haryana High Court)
Appeal Number : I.T.A. No. 402 of 2014 (O&M)
Date of Judgement/Order : 10/03/2015
Related Assessment Year :

Section 12AA, which lays down the procedure for registration, does not speak anywhere that the CIT, while considering the application for registration, shall also  see  that  the  income  derived  by  the  trust  or  the institution  is  either  not  being  spent  for  charitable purpose  or  such  institution  is  earning  profit.

The language used in the section only requires that activities of the trust or the institution must be genuine. The profit  earning or  misuse of the  income  derived  by  charitable  institution  from  its charitable  activities,  may  be  a  ground  for  refusing exemption only with respect  to that part  of the income but cannot be taken to be a synonym to the genuineness of the activities of the trust or the institution. Accordingly,  keeping  in  view  the  peculiar  facts  and circumstances  as  noticed  above,  we  are  of  the  opinion  that  the CIT was  not  justified in  passing the impugned order for withdrawing the exemption as admittedly, the assessee is  carrying  out  educational  activities  by  running  a  large  number  of educational institutions all over the country and, therefore, both the income tax appeals were dismissed

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May 2024