S.D.SINGH,J. - (1.) This appeal has been filed by the revenue under Section 260-A of the Act, 1961 (hereinafter referred to as the Act) against the order of the Income Tax Appellate Tribunal, Delhi Bench dated 26.7.2013, in ITA No. 94/Del/2012, arising from the order passed by the Commissioner of Income Tax, Meerut dated 23.11.2011 under Section 12-AA (1) (b) (ii) of the Act. It had been admitted on the following questions of law: "1. Whether the ITAT erred in law in giving relief to the assessee society by misinterpreting the provision and language of Section 2 (15) where the language used is "advancement" of any other object of "General Public Utility" shall not be a charitable purpose, if it involves carrying on of any activity in the nature of trade, commerce or business, which is the case here? 2. Whether the ITAT erred in law in directing the C.I.T. to register the assessee society U/s 12-AA when the assessee does not fall under the provisions of Section 2(15) which uses the language "any activity of rendering any service in relation to any trade, commerce or business for a cess or fee" which is the case here where the assessee is providing services with a profit motive? 3. Whether the ITAT erred in law in curbing the legislative powers provided to the C.I.T. U/s 12-AA regarding satisfaction that the activities are genuine before granting of registration? 4. Whether the ITAT has justified in directing the C.I.T. to register the society U/s 12-AA and not considering the facts that the assessee's sole activity was in the nature of trade, commerce or business which does not make its activities as advancement of any activities of general public utility and, therefore, it was ineligible for registration in terms of the first proviso of Section 2(15) of I.T. Act."
(2.) While, the Commissioner of Income Tax, Meerut had rejected the assessee's application for grant of registration under Section 12-AA (1) (b) (ii) of the Act, the Tribunal allowed the assessee's appeal and directed the CIT to register the assessee under Section 12-AA of the Act.
(3.) The assessee claims itself to be a registered society formed with the object to establish and run Health Club, Arogya Kendra, to organize emergency relief centers etc. It also claims to work to promote moral values, eradication of child labour and dowry etc. The assessee filed an application under Section 12-AA of the Act, on 17.5.2010 for grant of registration. At that time, admittedly the assessee was engaged mainly in preparing and supplying mid-day-meals to the students at primary schools in various villages, against a contract awarded by the Basik Shiksha Adhikari, Meerut.;