M/s R.K.Educational Society, Machilipatnam V. The CIT, Vijayawada, Vijayawada

ITA 369/VIZ/2012

• Counselvise Citation: 36925314 RSA 2012
• Duration Of Justice: 2 year(s) 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 09-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OMKARESWARA RAO
• Assessee Lawyers: C R HEMANTH KUMAR
• Keywords: Charitable institution
• Section: 12A; 12AA; 11

Judgement Text

ITA NO.369 OF 2012 RK EDUCATIONAL SOCIETY MACHALIPATN AM PAGE 1 OF 12 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER, & SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 369/VIZAG/2012 ASSESSMENT YEAR : 2012 - 13 R.K. EDUCATIONAL SOCI ETY, 21-192 ENGLISHPALEM, MACHILIPATNAM VS. CIT (V) VIJAYAWADA (APPELLANT) PAN NO: AABTR 5614 A (RESPONDENT) ASSESSEE BY: SHRI C.R. HEMANTH KUMAR, CA DEPARTMENT BY: SHRI OMKARESWARA RAO, DR DATE OF HEARING: 25/2/1015 DATE OF PRONOUNCEMENT: 04 /3 /2015 ORDER PER SAKTIJIT DEY THE AFORESAID APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 27.07.2012 PASSED BY THE LEARNED CI T VIJAYAWADA REJECTING ASSESSEES APPLICATION FOR GRA NT OF REGISTRATION UNDER SECTION 12A OF THE ACT. 2. BRIEFLY THE FACTS ARE, ASSESSEE A SOCIETY REGIST ERED UNDER THE A.P. SOCIETYS REGISTRATION ACT, 2001 WAS ESTAB LISHED IN THE YEAR 2009. ON 10.1.2012 ASSESSEE MADE AN APPLICATIO N IN FORM NO.10A BEFORE THE CIT SEEKING REGISTRATION UNDER SE CTION 12A OF THE ACT. AFTER RECEIVING THE APPLICATION OF THE ASS ESSEE, LEARNED CIT CALLED FOR VARIOUS INFORMATIONS AND ON EXAMININ G THE INFORMATIONS SUBMITTED BY THE ASSESSEE, HE WAS OF T HE VIEW THAT THE ACTIVITIES CARRIED ON BY THE ASSESSEE WILL NOT COME ITA NO.369 OF 2012 RK EDUCATIONAL SOCIETY MACHALIPATN AM PAGE 2 OF 12 WITHIN THE MEANING OF CHARITABLE PURPOSE AS DEFIN ED UNDER SECTION 2(15) OF THE ACT DUE TO THE FOLLOWING REASO NS: (A) AS SEEN FROM THE AUDITED FINANCIAL STATEMENTS F OR THE YEAR ENDING 31.3.2010 AND 21.3.2011, MOST OF THE FE E COLLECTIONS ARE FROM EAMCET COACHING. IMPARTING TRAINING TO APPEAR AT SOME SPECIFIED EXAMINATION WO ULD NOT COME UNDER EDUCATION. (B) THE ASSESSEE SOCIETY IS CHARGING FEE OVER AND A BOVE THE FEE PRESCRIBED BY THE GOVT. THEREFORE, IT IS CL EAR CASE OF SALE OF EDUCATION BY THE ASSESSEE SOCIETY AS SUC H THE ASSESSEE CANNOT BE CONSIDERED AS A CHARITABLE INSTI TUTION. HENCE, THE ACTIVITY OF THE ASSESSEE NO LONGER REMAI NED CHARITABLE WITHIN THE MEANING OF SECTION 2(15) OF T HE ACT. (C) THE ASSESSEE SOCIETY IS COLLECTING FEE FROM ALL CHILDREN. THE SOCIETY IS NOT ESTABLISHED FOR THE PURPOSE OF IMPARTING EDUCATION TO THE POOR WITHOUT ANY FEE OF WITH CONCESSION IN THE FEES. THE SECTION 2(15) DEFINES RELIEF OF POOR, EDUCATION, MEDICAL RELIEF ETC. WITHOUT ANY RE LIEF TO THE POOR PUBLIC UTILITY AT LARGE, MERE RUNNING OF E DUCATION INSTITUTION CANNOT BE SAID TO BE A CHARITABLE INST ITUTION. (D) MOREOVER, THE ASSESSEE IS NOT HOLDING ANY PROPE RTY UNDER THE TRUST FOR CHARITABLE PURPOSE. IT IS NOT D ERIVING ANY INCOME FROM THE PROPERTY HELD UNDER TRUST AND A NY INCOME IN THE FORM OF VOLUNTARY CONTRIBUTIONS WAS RECEIVED WITH A SPECIFIC DIRECTION TO FORM PART OF THE CORPUS OF THE SOCIETY. THE PURPOSE OF REGISTRATION UNDER SECTION 12A IS TO CLAIM RELIEF UNDER SECTION 11 OF THE ACT. FROM CLAIMING RELIEF UNDER SECTION 11 AND 12 OF THE ACT, THE ASSESSEE HAS TO DERIVE INCOME FROM PROPERTY HEL D ITA NO.369 OF 2012 RK EDUCATIONAL SOCIETY MACHALIPATN AM PAGE 3 OF 12 UNDER TRUST. THE ASSESSEE SOCIETY HAS NOT DERIVED A NY INCOME FROM THE PROPERTY HELD UNDER TRUST OR VOLUNT ARY CONTRIBUTIONS. (E) THE LEGISLATURE HAS ENACTED A SPECIFIC PROVISIO N FOR GRANT OF EXEMPTION OF INCOME IN RESPECT OF EDUCATIO NAL INSTITUTION UNDER SECTIONS 10(23C)(IIIAB), 10(23C)( IIIAD) AND 10(23C)(VI) OF THE ACT. THE GENERAL PROVISION CONTAINED IN SECTION 11 MAY NOT OVERRIDE THE PROVIS IONS OF SPECIFIC SECTION. HENCE, THE INCOME OF THE EDUCATIO NAL INSTITUTION HAS TO BE EXAMINED UNDER SECTION 10(23C)(IIAB), 10(23C)(IIIAD) AND 10(23C)(VI) OF TH E ACT AND NOT UNDER SECTION 11 OF THE ACT> 3. ACCORDINGLY LEARNED CIT RELYING UPON CERTAIN JUD ICIAL PRECEDENTS HELD THAT AS THE ASSESSEE SOCIETY IS NOT ESTABLISHED FOR CHARITABLE PURPOSE CANNOT BE GRANTED REGISTRA TION UNDER SECTION 12AA OF THE ACT. ACCORDINGLY, HE REJECTED T HE APPLICATION FILED BY THE ASSESSEE. BEING AGGRIEVED OF THE SAID DECISION OF THE LEARNED CIT, ASSESSEE IS IN APPEAL BEFORE US. 4. THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT AT THE TIME OF GRANTING REGISTRATION UNDER SECTION 12A A OF THE ACT, THE CIT IS REQUIRED TO ONLY EXAMINE THE OBJECT OF T HE SOCIETY AND GENUINENESS OF ITS ACTIVITIES. HE CANNOT GO INT O THE ENTITLEMENT OF EXEMPTION UNDER SECTION 11 AT THAT S TAGE. IT WAS SUBMITTED, ONCE THE CONDITIONS OF SECTION 12AA AND RULE 17A ARE COMPLIED, LEARNED CIT CANNOT REFUSE TO GRANT RE GISTRATION UNDER SECTION 12A. THE LEARNED AUTHORISED REPRESENT ATIVE REFERRING TO THE OBJECTS OF THE SOCIETY AS ENUMERAT ED IN THE MEMORANDUM SUBMITTED THAT THE OBJECTS ARE CHARITABL E IN ITA NO.369 OF 2012 RK EDUCATIONAL SOCIETY MACHALIPATN AM PAGE 4 OF 12 NATURE, AS DEFINED IN SECTION 2(15) OF THE ACT. IT WAS SUBMITTED, AS THE OBJECTS OF THE SOCIETY ARE CHARITABLE IN NAT URE, THE CONCLUSIONS DRAWN BY THE CIT IS NOT CORRECT. IT WAS SUBMITTED, THE OBSERVATIONS MADE BY THE LEARNED CIT THAT THE A SSESSEE IS GIVING STUDENTS EAMCET COACHING WHICH CANNOT BE CON SIDERED AS EDUCATION IS NOT A CORRECT VIEW AND WITHOUT PROP ER APPRECIATION OF THE FACTS. THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED, ASSESSEE IS RUNNING A JR. COLLEGE AND IMPARTING EDUCATION TO THE STUDENTS. IN THIS CO NTEXT HE REFERRED TO THE APPROVALS GIVEN BY THE BOARD OF INT ERMEDIATE EDUCATION. THE LEARNED AUTHORISED REPRESENTATIVE FU RTHER SUBMITTED THAT THE TRAINING GIVEN TOWARDS PREPARING THE STUDENTS FOR APPEARING IN VARIOUS ENTRANCE EXAMINAT IONS LIKE EAMCET, IIT, AIEE ETC., IS IN ADDITION TO THE IMPAR TING OF EDUCATION IN THE JR. COLLEGE AND IS ONLY A VALUE AD DITION. IN THIS CONTEXT IT WAS SUBMITTED THAT IF TRAINING RELATING TO THE ENTRANCE EXAMINATIONS ARE NOT GIVEN TO THE STUDENTS ALONG WITH NORMAL CURRICULUM, THEN NO PARENT WOULD BE WILLING TO SEND THEIR CHILDREN TO THE COLLEGE. THUS, ONLY LOOKING A T THE NEED OF THE HOUR, IN ADDITION TO THE NORMAL INTERMEDIATE CO URSE, THE ASSESSEE IS ALSO IMPARTING EDUCATION TOWARDS ENTRAN CE EXAMINATIONS. THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE TERM EDUCATION HAS NOT BEEN DEFI NED IN THE ACT. THEREFORE, ANY KIND OF KNOWLEDGE IMPARTED TO D EVELOP SKILL, CHARACTER, AND KNOWLEDGE OF THE STUDENTS WOULD BE W ITHIN THE MEANING OF EDUCATION. THEREFORE, THE CONCLUSION OF THE CIT THAT GIVING COACHING TO STUDENTS IS NOT EDUCATION IS WIT HOUT ANY BASIS. AS FAR AS ALLEGATION OF THE CIT THAT ASSESSE E IS CHARGING FEES IN EXCESS OVER THE FEES PRESCRIBED BY THE GOVT ., THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE ASSESS EE HAS NOT ITA NO.369 OF 2012 RK EDUCATIONAL SOCIETY MACHALIPATN AM PAGE 5 OF 12 CHARGED ANY EXCESS FEE THAN WHAT HAS PRESCRIBED BY THE GOVT. THE LEARNED AUTHORISED REPRESENTATIVE REFERRING TO THE FEES PRESCRIBED BY THE GOVT. AND THE FEE CHARGED SUBMITT ED THAT THE TUITION FEE CHARGED BY THE ASSESSEE IS ALMOST AT PA R WITH THE FEE PRESCRIBED BY THE GOVT. EXTRA FEE CHARGED BY THE AS SESSEE IS TOWARDS COMPUTERS AND LABORATORY FACILITIES. THE LE ARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE VIEW E XPRESSED BY THE CIT THAT RELIEF TO POOR IS A PRE CONDITION F OR ANY ACTIVITY TO COME UNDER THE PURVIEW OF SEC. 2(15) OF THE ACT IS ALSO NOT THE CORRECT VIEW AS EXPRESSION CHARITABLE PURPOSE AS DEFINED UNDER SECTION 2(15) ALSO INCLUDE OTHER ACTIVITIES L IKE EDUCATION, MEDICAL RELIEF ETC. EVEN OTHERWISE ALSO THE ASSESSE E HAS ALSO GRANTED CONCESSION IN FEES TO THE STUDENTS WHO CANN OT AFFORD. 5. CONTESTING THE FINDING OF THE CIT THAT AS THE AS SESSEE IS NOT HOLDING ANY PROPERTY UNDER THE INCOME FROM WHIC H WOULD BE EXEMPT UNDER SECTION 11, IT IS SUBMITTED BY THE LEARNED AUTHORISED REPRESENTATIVE THAT THE OBJECTS OF THE A SSESSEE IS TO RUN EDUCATIONAL INSTITUTIONS. HENCE ANY INCOME DERI VED THEREFROM IS ALSO ELIGIBLE FOR EXEMPTION. THE LEARN ED AUTHORISED REPRESENTATIVE SUBMITTED, THE RATIO OF THE DECISION S RELIED UPON BY CIT WILL NOT APPLY TO THE FACTS OF THE PRESENT C ASE. 6. THE LEARNED AUTHORISED REPRESENTATIVE RELIED ON THE FOLLOWING DECISION: INSTITUTE & ELECTRONIC ENGINEERS INC. V. DIT 147 I TD 263 KUSUMBA DHIRAJLAL PAREKH & LILA NAUTAMLAL PAREKH V. DIT (EXEMPTIONS) 2014 TAX PUB (D) 354 (HYD-TRIB) ITA NO.369 OF 2012 RK EDUCATIONAL SOCIETY MACHALIPATN AM PAGE 6 OF 12 CIT VS. LUCKNOW EDUCATIONAL AND SOCIAL WELFARE SOCI ETY (2012),0672 (ALL.HC) (2012) 340 ITR 86 CIT VS. D.P.R. CHARITABLE TRUST, 061 DTR 410 7. THE LEARNED DEPARTMENTAL REPRESENTATIVE ON THE O THER HAND SUBMITTED THAT AS FOUND BY THE CIT, THE MAJOR PORTION OF FEES ARE COMING FROM COACHING OF STUDENTS FOR DIFFE RENT ENTRANCE EXAMINATIONS LIKE EAMCET ETC., THEREFORE, THE ASSESSEE BEING A COACHING INSTITUTION CANNOT BE CON SIDERED TO BE IMPARTING EDUCATION SO AS TO BRING IT WITHIN THE MEANING OF CHARITABLE PURPOSE AS DEFINED UNDER SECTION 2(15) O F THE ACT. HE FURTHER SUBMITTED THAT THE CIT HAS ONLY LOOKED I NTO THE OBJECTS AND THE GENUINENESS OF THE ACTIVITIES AND H AS DENIED REGISTRATION TO THE ASSESSEE. 8. HE ALSO SUBMITTED THAT THE FACTS BROUGHT ON RECO RD BY THE CIT PROVED THAT THE ASSESSEE HAS NOT GRANTED ANY CO NCESSIONS TOWARDS THE FEES TO THE POOR STUDENTS. AS THERE IS NO CHARITABLE ACTIVITY BY THE ASSESSEE, THE CONDITIONS OF SEC 2(1 5) IS NOT FULFILLED, HENCE ASSESSEE IS NOT ELIGIBLE FOR REGIS TRATION. IT IS SUBMITTED THAT AS THE ASSESSEE IS PURELY INVOLVED I N A COMMERCIAL ACTIVITY, IT CANNOT BE GRANTED REGISTRAT ION UNDER SECTION 12AA OF THE ACT. IN SUPPORT OF SUCH CONTENT ION, HE RELIED UPON THE FOLLOWING DECISIONS: MP H.C. INDORE BENCH IN THE CAE OF K.D.WIRES P LTD VS. UNION OF INDIA 319 ITR 360 ITA NO.369 OF 2012 RK EDUCATIONAL SOCIETY MACHALIPATN AM PAGE 7 OF 12 ADITANAR EDUCATIONAL INSTITUTION V. ADDL. CIT (1997 ) 224 ITR 310 (SC) 224 ITR 310 9. WE HAVE CONSIDERED THE SUBMISSIONS OF THE PARTIE S AND PERUSED THE MATERIALS ON RECORD. WE HAVE ALSO CAREF ULLY APPLIED OUR MIND TO THE DECISIONS RELIED UPON BY THE PARTIE S. AS CAN BE SEEN LEARNED CIT HAS REFUSED TO GRANT REGISTRATION UNDER SECTION 12AA BASICALLY FOR THE FOLLOWING REASONS: THE MAJORITY OF FEES WERE COLLECTED FOR EAMCET COAC HING I.E. IMPARTING TRAINING TO APPEAR AT SOME SPECIFIED EXAMINATION WHICH WOULD NOT COME UNDER THE DEFINITI ON OF EDUCATION. THE SOCIETY IS CHARGING FEES OVER AND ABOVE THE FEE S PRESCRIBED BY THE GOVT. AND THEREFORE, IT IS A CLEA R CASE OF SALE OF EDUCATION. HENCE IT DOES NOT FALL WITHIN TH E MEANING OF SECTION 2(15) OF THE ACT. THE SOCIETY IS COLLECTING FEES FROM ALL CHILDREN WI THOUT ANY RELIEF TO THE POOR HENCE THE INSTITUTION CANNOT BE SAID TO BE A CHARITABLE INSTITUTION. THE SOCIETY DOES NOT HOLD ANY PROPERTY AND DOES NOT DERIVE ANY INCOME FROM PROPERTY OR VOLUNTARY CONTRIBUTIONS. THE INCOME OF THE EDUCATIONAL INSTITUTION HAS TO BE EXAMINED UNDER SECTION 10(23C)(IIIAB), 10(23C)(IIIA D) AND 10(23C(VI) OF THE ACT AND NOT UNDER SECTION 11. 10. BEFORE DECIDING WHETHER THE AFORESAID REASONS A RE GOOD ENOUGH TO DENY REGISTRATION TO THE ASSESSEE, WE HAV E TO LOOK AT THE MEANING OF CHARITABLE PURPOSE AS DEFINED UNDE R SECTION 2(15) OF THE ACT. THE SAME IS EXTRACTED HEREUNDER: ITA NO.369 OF 2012 RK EDUCATIONAL SOCIETY MACHALIPATN AM PAGE 8 OF 12 SECTION 2(15)'CHARITABLE PURPOSE' INCLUDES RELIEF OF THE POOR, EDUCATION, MEDICAL RELIEF, [PRESERVATION OF ENVIRONMENT (INCLUDING WATERSHEDS, FORESTS AND WILDLIFE) AND PRESERVATION OF MONUMENTS OR PLACES OR OBJECTS OF ARTISTIC OR HISTORIC INTEREST,] AND T HE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY: PROVIDED THAT THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY SHALL NOT BE A CHARITABLE PURPOSE, IF IT INVOLVES THE CARRYING ON OF ANY ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS, OR ANY ACTIVITY OF RENDERING ANY SERVICE IN RELATION TO ANY TRADE, COMMERCE OR BUSINESS, FOR A CESS OR FEE OR ANY OTHER CONSIDERATION, IRRESPECTIVE OF THE NATURE OF USE OR APPLICATION, OR RETENTION, OF THE INCOME FROM SUCH ACTIVITY:] [ PROVIDED FURTHER THAT THE FIRST PROVISO SHALL NOT APPLY IF THE AGGREGATE VALUE OF THE RECEIPTS FROM THE ACTIVITIES REFERRED TO THEREIN IS [TWENTY-FIVE LAKH RUPEES] OR LESS IN THE PREVIOUS YEAR;] 11. A PLAIN READING OF THE AFORESAID PROVISION WILL MAKE IT CLEAR THAT THE EXPRESSION CHARITABLE PURPOSE IS A N INCLUSIVE ONE WHICH AMONGST OTHER THINGS INCLUDES RELIEF TO T HE POOR, EDUCATION, MEDICAL RELIEF ETC. THE RESTRICTIONS IMP OSED IN THE PROVISO RELATING TO CARRYING OF ANY ACTIVITY IN THE NATURE OF TRADE BUSINESS OR COMMERCE IS ONLY IN RESPECT OF THE ACTI VITY RELATING TO ANY OTHER OBJECTS OF GENERAL PUBLIC UTILITY AN D NOT IN RELATION TO ANY OTHER ACTIVITIES. 12. KEEPING IN VIEW THE AFORESAID STATUTORY PROVISI ONS, LET US EXAMINE THE VALIDITY OF REASONS FOR REFUSING REGIST RATION TO THE ASSESSEE. THE FIRST OBJECTION OF THE CIT IS WITH RE GARD TO THE FACT THAT THE ASSESSEE IS NOT IMPARTING ANY EDUCATION, B UT ONLY ITA NO.369 OF 2012 RK EDUCATIONAL SOCIETY MACHALIPATN AM PAGE 9 OF 12 GIVING COACHING FOR EAMCET EXAMINATION. HOWEVER, IN OUR VIEW SUCH FINDING OF THE CIT IS NOT BASED ON FACTS ON RE CORD. AS CAN BE SEEN THE ASSESSEE HAS ESTABLISHED A JR. COLLEGE IN THE NAME AND STYLE OF R.K. SCIENCE AND COMMERCE JR. COLLEGE WHICH IS IMPARTING EDUCATION IN TWO YEAR INTERMEDIATE COURSE . THIS FACT IS CLEARLY EVIDENT FROM THE AFFILIATION GRANTED ON 9.4.2012 BY THE BOARD OF INTERMEDIATION, A.P. THEREFORE, THERE CANNOT BE ANY DOUBT THAT THE ASSESSEE IS RUNNING AN EDUCATION AL INSTITUTION WHICH IS AS PER THE OBJECTS OF THE SOCI ETY. 13. IT MAY BE A FACT THAT IN ADDITION TO THE GENERA L CURRICULUM OF INTERMEDIATE COURSE, ASSESSEE IS ALSO GIVING TRAINING/PREPARING STUDENTS FOR VARIOUS ENTRANCE EX AMINATIONS LIKE EAMCET, IIT, AIEEE ETC. HOWEVER, THAT CANNOT T AKE US AWAY FROM THE FACT THAT THE BASIC OBJECT OF THE ASS ESSEE IS IMPARTING OF EDUCATION WHICH THE ASSESSEE IN FACT I S CARRYING ON. THE OTHER ACTIVITIES LIKE PREPARING STUDENTS FO R EAMCET, IIT, AIEEE ENTRANCE EXAMINATIONS IS ONLY ANCILLARY TO THE MAIN OBJECTS. THAT BEING THE CASE, IT CANNOT BE SAID THA T THE ASSESSEE IS NOT IMPARTING EDUCATION. THE TERM EDUCATION IN OUR VIEW WOULD MEAN TRAINING AND DEVELOPING THE SKILL, KNOWL EDGE, MIND AND CHARACTER OF STUDENTS WHICH THE ASSESSEE IS ACT UALLY CARRYING ON. 14. THE NEXT OBJECTION OF THE CIT IS, THE ASSESSEE IS CHARGING FEE OVER AND ABOVE THE FEE PRESCRIBED BY THE GOVT. HOWEVER, THE LEARNED AUTHORISED REPRESENTATIVE HAS DEMONSTRATED BEFORE US BY REFERRING TO THE RELEVANT G.O ISSUED BY THE GOVT . THAT FEES CHARGED BY THE ASSESSEE IS MORE OR LESS AT PAR WITH THE TUITION FEES PRESCRIBED BY THE GOVT. MOREOVER, WHETHER THE ASSESSEE IS ITA NO.369 OF 2012 RK EDUCATIONAL SOCIETY MACHALIPATN AM PAGE 10 OF 12 CHARGING FEES IN EXCESS OR WHAT IS PRESCRIBED CAN B E CONSIDERED BY THE ASSESSING OFFICER WHILE EXAMINING ASSESSEES CLAIM OF EXEMPTION UNDER SECTION 11. AT THE TIME OF GRANTING REGISTRATION, THE CIT HAS TO ACT IN ACCORDANCE WITH THE PROVISIONS CONTAINED UNDER SECTION 12AA OF THE ACT. AS PER THE SAID PROVISION AT THE TIME OF GRANTING OF REGISTRAT ION, THE CIT HAS TO EXAMINE THE OBJECT OF THE SOCIETY AND THE GE NUINENESS OF ITS ACTIVITIES. IF THE OBJECTS OF THE SOCIETY ARE C HARITABLE AND ITS ACTIVITIES ARE GENUINE, THEN REGISTRATION CANNOT BE REFUSED TO THE ASSESSEE. ON THE BASIS OF THE FACTS AND MATERIA LS ON RECORD, IT IS CLEAR THAT ONE OF THE OBJECTS OF THE ASSESSEE IS IMPARTING EDUCATION AND THE ASSESSEE IS CARRYING OUT SUCH OBJ ECTS BY ESTABLISHING AN EDUCATIONAL INSTITUTION FOR IMPARTI NG EDUCATION IN INTERMEDIATE COURSE. THEREFORE, THERE IS NO DOUB T THAT THE OBJECTS OF THE ASSESSEE ARE CHARITABLE IN NATURE. T HE ALLEGATION OF THE LEARNED CIT THAT THE ASSESSEE CANNOT BE CONS IDERED AS A CHARITABLE INSTITUTION AS IT IS NOT GRANTING ANY RE LIEF TO THE POOR, IN OUR VIEW IS A FINDING ARRIVED AT ON MISREADING T HE STATUTORY PROVISIONS. AS CAN BE SEE FROM SECTION 2(15), RELIE F TO POOR ALONG WITH EDUCATION, MEDICAL RELIEF AND ACTIVITY I N GENERAL PUBLIC UTILITY ARE ACTIVITIES WHICH CONSTITUTE CHAR ITABLE PURPOSE. THEREFORE, IT CANNOT BE SAID THAT AS THE ASSESSEE I S NOT INVOLVED IN THE ACTIVITY OF RELIEF TO POOR, IT IS NOT A CHAR ITABLE INSTITUTION, NOTWITHSTANDING THE FACT THAT ASSESSEE IS INVOLVED IN IMPARTING EDUCATION WHICH IS ALSO ONE OF THE ACTIVITY COMING WITHIN THE MEANING OF CHARITABLE PURPOSE AS DEFINED UNDER SE CTION 2(15). EVEN THE OTHER ALLEGATIONS OF THE CIT SUCH AS, ASSE SSEE IS NOT HOLDING ANY PROPERTY ON TRUST AND THE PROVISIONS OF SECTION 11 BEING GENERAL PROVISION WILL NOT OVERRIDE THE SPECI FIC PROVISIONS OF SECTION 10(23C), IN OUR VIEW, ARE NOT RELEVANT. ON A PLAIN ITA NO.369 OF 2012 RK EDUCATIONAL SOCIETY MACHALIPATN AM PAGE 11 OF 12 READING OF SECTION 12A, 12AA AND 11, WE DO NOT FIND ANY RESTRICTION IMPOSED THEREIN FOR GRANTING REGISTRATI ON TO A TRUST OR INSTITUTION IMPARTING EDUCATION. MOREOVER, THE D EFINITION OF CHARITABLE PURPOSE AS CONTAINED UNDER SECTION 2(1 5) ALSO RECOGNIZES EDUCATION AS ONE OF THE CHARITABLE ACTIV ITY. THAT BEING THE CASE, REGISTRATION UNDER SECTION 12AA CAN NOT BE DENIED TO AN EDUCATIONAL INSTITUTION, BECAUSE IT IS OTHERWISE ELIGIBLE FOR EXEMPTION UNDER SECTION 10(23C). FURTH ERMORE, ITAT HYDERABAD BENCHES HAVE CONSISTENTLY EXPRESSED THE VIEW THAT AN EDUCATIONAL INSTITUTION CAN AVAIL EXEMPTION EITHER UNDER SECTION 10(23C) OR SEC. 11 IF THE CONDITIONS IMPOSED UNDER THESE PROVISIONS ARE SATISFIED. MOREOVER AT T HE TIME OF GRANTING REGISTRATION UNDER SECTION 12AA, THE CIT H AS TO LOOK INTO THE OBJECTS OF THE SOCIETY AND GENUINENESS OF ITS ACTIVITIES. AS CAN BE SEEN, THERE CANNOT BE ANY DOUBT THAT ONE OF THE OBJECTS OF SOCIETY IS TO IMPART EDUCATION AND FOR A CHIEVING THAT OBJECT, ASSESSEE HAS ESTABLISHED AN EDUCATIONAL INS TITUTION AND IMPARTING EDUCATION. THEREFORE, THERE CANNOT BE ANY DOUBT WITH REGARD TO THE CHARITABLE OBJECT OF THE SOCIETY . SO FAR AS THE GENUINENESS OF ITS ACTIVITIES IS CONCERNED, THE LEA RNED CIT HAS NOT BROUGHT ANY SPECIFIC INSTANCE WHICH COULD PROVE THAT THE ACTIVITIES OF THE SOCIETY ARE NOT GENUINE. THEREFOR E, ONCE THE CONDITIONS OF SECTION 12AA ARE SATISFIED, THE CIT C ANNOT DENY REGISTRATION ON EXTRANEOUS CONSIDERATIONS. THIS VIE W OF OURS IS SUPPORTED BY THE DECISIONS CITED BY THE LEARNED AUT HORISED REPRESENTATIVE. ON THE OTHER HAND THE DECISIONS REL IED UPON BY THE LEARNED CIT BEING FACTUALLY DISTINGUISHABLE WIL L NOT APPLY TO THE FACTS OF PRESENT CASE. IN THE AFORESAID FACTS A ND CIRCUMSTANCES, WE ARE OF THE VIEW, REJECTION OF ASS ESSEES APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12A IS NOT ITA NO.369 OF 2012 RK EDUCATIONAL SOCIETY MACHALIPATN AM PAGE 12 OF 12 JUSTIFIED. ACCORDINGLY WE SET ASIDE THE ORDER OF TH E LEARNED CIT AND DIRECT HIM TO GRANT REGISTRATION TO THE ASSESSE E UNDER SECTION 12AA OF THE ACT. 15. IN THE RESULT, THE APPEAL FILED BY THE ASSES SEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 4 TH MARCH, 2015 SD/- SD/- (J. SUDHAKAR REDDY) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 4 TH MARCH, 2015 PVV/SPS CAMP: VISAKHAPATNAM, COPY TO 1 R.K. EDUCATIONAL SOCIETY, 21 - 192 ENGLISHPALEM, MACHILIPATNAM-521 001 2 THE COMMISSIONER OF INCOME TAX, VI JAYAWADA 3 THE ADD.CIT RANGE - 2 VIJAYAWADA 4 THE DEPARTMENTAL REPRESENTATIVE ITAT, VISAKHAPATNAM 5 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM