DIRECTOR OF INCOME TAX Vs. COMMERCE TEACHERS ASSOCIATION

JUDGEMENT

(1.) : The respondent-assessee is an association of commerce teachers which is registered as a Society under the Societies Registration Act, 1860. The assessee claimed itself to be a Welfare Society whose objects are of charitable nature. As per the memorandum of association it has 54 objects. The Society applied for grant of registration under S. 12AA of the IT Act, 1961.

(2.) THE Director of IT (Exe.) analysed the activities of the assessee and was satisfied that the assessee was deserved to be granted registration under S. 12AA of the Act. Accordingly, Order dt. 28th Sept., 2010 was issued by the Director of IT (Exe.) granting such a registration. However, certain conditions were imposed in the said registration. The respondent-assessee did not call in question any conditions except condition No. 11 which reads as under :

(3.) LEARNED counsel for the appellant argues that this Court in the Digember Jain Society for Child Welfare vs. Director General of IT (Exe.) (2010) 228 CTR (Del) 517 : (2009) 32 DTR (Del) 199 : (2010) 329 ITR 459 (Del) has categorically held that while granting the exemption the Director General is free to incorporate stipulations and conditions in terms of the third proviso. On this basis it is argued that the Tribunal is not right in holding that the registration cannot be subject to conditions.