INCOME TAX ACT, 1961

--Charitable trust--Charitable purpose Refusal of registration, whether justified--Administrative Commissioner refused to grant registration to assessee-society established with various objects, including conducting coaching and training classes. Assessee contended that it had given substantial reduction in fees to financially backward and weaker students and the entire income derived by way of fees was spent for charitable purpose, therefore, it was a charitable institution under section 2(15) and hence, entitled to registration under section 12AA. Held: Not rightly so as in Sole Trustee, Loke Shikshana Trust v. CIT 1975 TaxPub(DT) 344 (SC) : (1975) 101 ITR 234 (SC), it was concluded that all kinds of acquiring knowledge would not come within the meaning of 'education'. There should be a systematic instruction to the students by way of normal schooling. Mere coaching classes may provide some kind of knowledge to the students. But, that kind of acquisition of knowledge through coaching classes could not fall within the meaning of 'education' as provided in section 2(15) of the Act. Therefore, assessee was not eligible for registration under section 12AA.

Income Tax Act, 1961, Section 2(15)

Income Tax Act, 1961, Section 12AA

In The ITAT Cochin Bench

N. R. S. Ganesan, J.M. & B. R. Baskaran, A.M.

M Star Charitable Society v. CIT

ITA No. 605 (Coch) of 2011

14 December, 2012

Appellant by : Raju Paul C