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Section 11 of Income-tax Act, 1961 - Charitable or religious trust - Exemption of income property hold under Assessee society engaged in coaching students for admission to professional institutions would fall under charitable purpose [Assessment years 2000-01 & 2001-02] Oxford Academy For Career Development v. Chief CIT [2009] 315 ITR 382/226 CTR (All.) 606 The petitioner was a registered society, which was earlier granted registration under section 12A on 1-4-1999. A survey was conducted at the business premises on 20-9-2002, from where documents were impounded. The registration was cancelled for the assessment years 2000-01 and 2001-02 for the reasons that the surplus was quite heavy. In the impugned order, it was mentioned by the Commissioner that there was an unusual huge margin and the petitioner was engaged in the commercial activities rather than charitable. As per the balance-sheet, huge amount from the students was charged. The profit margin embodied in the charges taken from the students were so huge and it proved the profit motive of the petitioner. The funds were misused by the president and his family members. Held that in the instant case, the assessee was preparing students by providing coaching/guidelines to get admissions in professional institutions to pursue their studies. The sense in which the word 'education' has been used in section 2(15) is the systematic instruction, schooling or training given to the young in preparation for the work of life. Similarly, extending financial assistance/scholarship, etc., to the students for their educational purpose would squarely and fairly fall within the connotation of 'education'. Thus, the assessee was engaged in 'educational activities' which fell under charitable purpose. Section 12AA Of Income-Tax Act, 1961 - Charitable Or Religious Trust - Registration Procedure - Procedure For Registration [Section 12aa] Section 12AA(3), which was incorporated with effect from 1-10-2004, to empower Commissioner to cancel registration granted to a trust or institution, is not applicable retrospectively; prior to that there was no inherent power in Commissioner to cancel registration [Assessment years 2000-01…

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