Allowing the appeal of the assessee the Tribunal held that; at time of considering assessee’s application for registration under section 12AA, Commissioner is only entitled to see whether objects of trust are charitable in nature and whether its activities are genuine or not. Rejection of application on the ground that the asessee is primarily engaged in business of education on commercial basis with a profit motive without providing any element of charity to public at large is held to be not justified.
Fateh Chand Trust & College Committee v. CIT(E) (2018) 67 ITR 564 (Agra)(Trib.)
S. 12AA : Procedure for registration–Trust or institution-Educational institution-At time of considering assessee’s application for registration under section Commissioner is only entitled to see whether objects of trust are charitable in nature and whether its activities are genuine or not – Rejection of application on the ground that the asessee is primarily engaged in business of education on commercial basis with a profit motive without providing any element of charity to public at large is held to be not justified. [S. 2(15), 11]