Commissioner cancelled registration under section 12AA(3) on the ground that assessee was generating continuous surplus and had granted fee concession only to a small percentage of students. Tribunal set aside the cancellation, holding that the dominant object of assessee was imparting education, and no activity contrary to its objects was found, and the cancellation of registration was based solely on continuous generation of surplus and limited fee concession without any finding of deviation from objects. Further, assessee had explained that surplus was ploughed back into educational infrastructure, which was a permissible mode of achieving its objects, and the Commissioner could not dictate the manner of application of funds. On appeal, the Court held that mere generation of surplus money, if the same is in the course of providing education or educational activities or for an object for which registration under section 12AA has been accorded, in that case, surplus money by itself cannot be a ground to cancel registration. Tribunal had rightly concluded that no violation of section 12AA(3) had been made by the assessee, and mere generation of surplus continuously would not result in the assumption that the assessee had earned the same by violating its objects.<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 12AA : Procedure for registration-Trust or institution-educational trust-Mere generation of surplus by educational trust, without any finding of non-genuine activities or deviation from objects, cannot justify cancellation of registration-order of Tribunal affirmed. [S.2(15), 11, 12AA(3), 260A] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-65202","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gXE","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=65202"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65202\/revisions"}],"predecessor-version":[{"id":65203,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65202\/revisions\/65203"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=65202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=65202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=65202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}