No registration for a trust seeking employment for students in lieu of subscription fees

No registration for a trust seeking employment for students
In Lieu of Subscription Fees

Activities of assessee-trust, of charging fees for providing employment opportunities to students of a college, were not charitable in nature

In the instant case the assessee-trust filed the application seeking registration under section 12A. The CIT rejected its application for grant of registration under section 12A on ground that trust was created to provide opportunities for students of a college (Delhi School of Economics) to seek employment; it was charging fees for the same and it was also charging subscription fees from companies who were providing employment to the enrolled students. Aggrieved assessee filed the instant appeal.

The Tribunal held in favour of revenue as under:

1) The activities of trust were focused on education of the college students. After completion of their courses, the trust provides opportunity to these students to interact with corporate and non-corporate houses approaching the college;

2) The public at large was neither eligible to become a member of the trust nor was provided any benefit by the trust, as all its activities were for the enrolled members;

3) Moreover, its activities couldn’t be in any manner be classified as being charitable in nature. Apart from administrative heads of expenditure, no other expenses were shown to have been incurred on any charitable activity;

4) As per the documents submitted by the assessee it couldn’t be held that the assessee's activities were charitable in nature. Therefore, the order of CIT was to be upheld - DSE-ECONOMICS PLACEMENT CELL V. DIT (EXEMPTIONS) (2013) 35 taxmann.com 459 (Delhi - Trib.)

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