SHREE BALAJI EDUCATIONAL TRUST vs SHREE BALAJI EDUCATIONAL TRUST

Whether an educational trust charging fees and generating surplus can be denied registration under section 12A of the Income Tax Act, 1961 on the grounds that it does not provide free education to needy students and is expanding its receipts? --- Held: No. The Tribunal held that mere generation of surplus and expansion of receipts, when ploughed back for educational purposes, does not disqualify an institution from registration under section 12A. The primary test is whether the institution exists solely for educational purposes and not for profit, and whether its activities are genuine and in consonance with its charitable objects.