SHAVAK SHIKSHA SAMITI v. COMMISSIONER OF INCOME TAX
[Citation -2006-LL-0814-1]

Citation 2006-LL-0814-1
Appellant Name SHAVAK SHIKSHA SAMITI
Respondent Name COMMISSIONER OF INCOME TAX
Court ITAT
Relevant Act Income-tax
Date of Order 14/08/2006
Judgment View Judgment
Keyword Tags grant of registration • medical relief • co-operative
Bot Summary: In the instant case, the school caters to the needs of the people belonging to higher strata of the society and charges high fees. The learned counsel pointed out that these objects are in the field of education, which is per se a charitable object. 17 of the rules and regulations, according to which, in the event of dissolution, the funds of the society shall devolve on any other association having similar objects. As against the aforesaid, the learned Departmental Representative pointed out that main object of the society was to impart education. 2(15) defines the term charitable purpose in an inclusive manner and includes within its ambit relief of poor, education, medical relief and advancement of any other object of general public utility. The society is trying to set up a school in pursuance of its main object, which is a genuine activity. The learned CIT is directed to grant registration to the society.


This appeal arises out of order of Commissioner of Income-tax (CIT), Ghaziabad, passed under s. 12AA of IT Act, 1961 on 22nd July, 2002, in which registration was refused to assessee-society. Before him, it was inter alia pointed out that assessee is society registered under Societies Registration Act, and it is establishing Shavak National School, which will be 10+2 standard school to cater to needs of people in Noida and Greater Noida. school will provide good education coupled with extra curricular activities for pupil. For this purpose, land has already been allotted to society and building plan has been submitted to advisory board of society. It was claimed that education is charitable purpose and, therefore, it should be registered under IT Act. learned CIT referred to definition of expression "charitable purpose" in s. 2(15) of Act and mentioned that it was mandatory that object should be to give relief to poor. However, in instant case, school caters to needs of people belonging to higher strata of society and charges high fees. Thus, he was of view that even while imparting education, society does not grant any relief to poor. Accordingly, it was held that society is not pursuing any charitable object. Before us, learned counsel of assessee drew our attention towards object cl. 4 of amended memorandum of society. main object is to advance, promote and disseminate amongst students study of education of all kinds of subjects including literary, commercial and religious subject. other objects are ancillary in nature, such as, to establish, maintain schools and colleges, etc.; to grant scholarships to deserving students; to cultivate feeling of Indians, nationalism and co-operative feeling etc. amongst students; and to conduct experiments with view to improve methods of imparting education. learned counsel pointed out that these objects are in field of education, which is per se charitable object. learned counsel also referred to cl. 17 of rules and regulations, according to which, in event of dissolution, funds of society shall devolve on any other association having similar objects. It was also pointed out that there is no provision for distribution of profit amongst members in rules and regulations. Thus, it was contended that society does not exist for profit. As against aforesaid, learned Departmental Representative pointed out that main object of society was to impart education. In view thereof, there was need for it to seek registration under IT Act, as its income was exempt under s. 10(23C). We have considered facts of case and rival submissions. Sec. 2(15) defines term charitable purpose in inclusive manner and includes within its ambit relief of poor, education, medical relief and advancement of any other object of general public utility. While, there could be some dispute in interpretation of words "any other object of general public utility", there is no dispute that education per se is charitable purpose just like relief of poor or medical relief. society also does not exist for profit as there is no clause for distribution of profits or net assets in case of dissolution to members. precondition for grant of registration under s. 12AA is that objects are charitable in nature and activities are genuine. We have seen that objects are charitable. society is trying to set up school in pursuance of its main object, which is genuine activity. learned CIT has also not referred to any material to show that activities are not genuine. It is no doubt true that income of society can also be exempted under s. 10(23C), but when two recourses are available to person under law, it is for him to choose one, other or both recourses. assessee applied for its registration, to which it was entitled. We are of view that under circumstances, it has to be registered. learned CIT is directed to grant registration to society. Thus, appeal is allowed. *** SHAVAK SHIKSHA SAMITI v. COMMISSIONER OF INCOME TAX
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