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2014 (12) TMI 14 - HC - Income TaxDenial of exemption u/s 10(23C)(vi) – Educational institution established in rural segment – Object of Trust charitable or not - Held that:- The Chief Commissioner of Income Tax had rejected the application for exemption u/s 10 (23C)(vi) on the ground that the memorandum of association provided for various other objects, apart from educational activities - While assailing that order, assessee contended that though the un amended bye-laws of the society contain various other aims and objects apart from pursuing educational activities, yet, from the application for approval and the material on record, it was clear that the society was only carrying on educational activities – relying upon C.P. Vidya Niketan Inter College Shikshan Society Vs. Union of India & Ors.[2013 (7) TMI 367 - ALLAHABAD HIGH COURT] wherein it has been held that the mere presence of objects in the memorandum providing for other charitable activities would not disentitle a society to claim approval u/s 10 (23C) (vi), where it is established that the institution is, in fact, carrying on only educational activities - the order accepts the fact that the activities of the assessee are restricted only to education - the mere fact that a fee is being charged from B Ed students would not establish that the institution exists for profit – thus, the rejection of the application for exemption u/s 10 (23C)(vi) has been done in a rather casual manner without the Chief Commissioner applying his mind to the essential ingredients of the provision – thus, the order is set aside and the matter is remitted back to the CCIT for fresh decision – Decided in favour of assessee.
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