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1 - 5 of 5 (0.18 seconds)Section 11 in The Income Tax Act, 1961 [Entire Act]
D.V. Arur vs Commissioner Of Income-Tax on 23 March, 1945
2. The assessee is a trust and running an educational institution
under the name and style as 'Amby International School Academy' in
Mumbai. The assessee applied for getting registration u/s.12AA of the
Income-tax Act as the assessee can claim exemption in respect of its
income u/s.11 of the Income-tax Act. The Ld. DIT (Exmt) examined
the fee structure of the assessee trust which is given in the impugned
order on page No.2. The Ld. DIT (Exmt) observed that the fees
charged by the assessee trust in imparting the education are
exceptionally high and beyond the reach of the general public. He
2 ITA 6214/M/2009
Amby International School Academy
also noted that the public trust should be for charitable purpose and
it should have the object for giving relief to the poor, education and
medical relief and any other object of general public utility. He
observed that that the 'charitable purpose' is an essential ingredient of
the public trust. The fee structure is a clear indication of commercial
set-up of the institution which is in the nature of business of
education. He also observed that the assessee is running and
maintaining an elite school which has a commercial activity and does
not have character of charity involved in it. He also relied on the
decision of the Hon'ble High Court of Bombay in the case of Arur D.V.
vs. CIT 13 ITR 465. The opinion of the Ld. DIT (Exmt) running the
elite school cannot be treated as a 'charitable object' as the same is
run for the benefit of few persons. The Ld. DIT (Exmt) rejected the
application filed by the assessee for the registration by holding that
the assessee trust is running and maintaining elite school which does
not fall within the definition of charitable purpose, as defined in
section 2(15) of the Income-tax Act.
Shavak Shiksha Samiti vs Commissioner Of Income Tax on 14 August, 2006
The above view is also supported by the decision of the co-ordinate
Bench in the case of Shavak Shiksha Samiti (supra).
Income Tax Rules, 1962
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