Elumalayan Educational Trust vs Cit

Hari Om Maratha, J.M.

This appeal of the Assessee-trust has been filed against the order of the learned Commissioner of Income-tax, Salem, dated 30-7-2009 vide which

application for registration sought under Section 12AA of the Income Tax Act, 1961 (hereinafter referred to as ""the Act"" for short) has been rejected.

The Assessee-trust applied for registration under Section 12AA in Form No. 10A on 2-3-2009. The trust deed was executed on 3-2-2003 and copy

of the registration deed was also supplied to the learned Commissioner of Income-tax. But the learned Commissioner of Income-tax has noted that the

trust is running a school in a village without seeking necessary prior permission to run this school. Therefore, he has rejected the application. He has

also mentioned that certain information called for were not supplied. Therefore, he doubted the nature of objects of the Assessee-trust.

Before us, it was argued that the objects of the trust are nothing but only charitable because running of a school is only a charitable activity. It was

argued that if the main object of the trust is charitable and even if the other objects are not implemented, it is not material for grant of registration.

Reliance is placed on a decision of the Hon'ble Delhi High Court in the case of Director of Income-tax (Exemption) v. Institute of the Franciscan

Clarist (2005) 148 Taxman 78 (Del). It was submitted at the end that the trust is genuine and carries on educational activities which are charitable in

nature, hence registration under Section 12A(a) should be granted to it. On the other hand, the learned departmental representative has fully supported

the order of the learned Commissioner of Income-tax and has repeated the reasons for refusal given therein.

After examining the records in the light of the oral submissions, we have reached a conclusion that the object of the Assessee-trust is only

charitable in nature and even if the school for some of the classes is run without requisite permission, it is not fatal for grant of registration under

Section 12AA. The evidence proving existence of an educational institution is available on record. Filing of belated return for the year ended 31-3-

2007, which was filed under Section 139 on 28-1-2009 is simply as per law. The Assessee-trust had filed Form No. 10B along with return of income.

So, we find that the trust is genuine and is carrying on educational activities being its main object. Consequently, we direct the learned Commissioner

Income-tax to grant registration under Section 12AA of the Act to the Assessee-trust.

In the result, this appeal of the Assessee-trust is allowed.

The order pronounced in the open court on 19-3-2010.