- (1.) For the reasons mentioned in the applications, delay in refiling as well in filing the appeal is condoned. The Civil Misc. Applications are allowed. ITA No. 759 of 2010
(2.) The present appeal is directed against the order dated 11.9.2009 passed by the Income Tax Appellate Tribunal, Delhi Bench 'B', New Delhi (hereinafter referred to as "the Tribunal") wherein the ITA No. 1905/Del/2009 filed by the respondent was allowed and the Tribunal set aside the order of the Commissioner of Income-tax, Rohtak by which application filed by the respondent under Section 80G(5) (vi) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") dated 13.10.2008 was rejected. The Commissioner of Income, Rohtak while rejecting the said application based its order on the ground that respondent society which is running five educational institutions, namely, (i) Gaur Brahaman Central School, (ii) Gaur Brahaman Degree College, (iii) All India Gaur Brahaman College of Education, (iv) All India Gaur Brahaman Sanskrit College and (v) Gaur Brahaman Aayurvedic College and was charging fee in the range of Rs. 36,000/- to Rs. 1 lac and, therefore, it was not a charitable purpose. The Commissioner of Income Tax has relied upon the table wherein percentage of profit was reflected from 20.44% to 28.49% and came to the conclusion that the respondent was enhancing the earning capacity of the institutions through acquisition of the buildings and fixed assets and not fulfilling any noble objects.
(3.) On appeal filed by the respondent, the Tribunal has noticed that society was registered way back on March 17,1923 with the Registrar, Joint Stock Companies, Punjab at Lahore for the purpose of spreading education without any distinction of caste and creed by establishing educational institutions. Thereafter, appellant was registered on 29.9.1980 under the Societies Registration Act, 1860. The Tribunal also noticed that vide order dated 27.6.2008, the Commissioner of Income Tax has held that the assessee is entitled for registration under Section 12AA of the Act with effect from 29.9.1980 and has been running educational institutions since then and merely if the surplus arises as a result of charitable activities, it cannot be held that appellant is not a charitable institution.;