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2017 (6) TMI 389 - AT - Income TaxGrant of approval u/s 10(23C)(vi) rejected - whether a trust exists solely for educational purposes and not for the purpose of profit? - Held that:- The assessee has been granted exemption u/s 12AA of the Act vide order dated 15.01.2013 and the Trust is also found to be eligible for exemption u/s 11 of the Act for block assessment period 01.04.1989 to 22.12.1998 by the coordinate Bench of the Tribunal in assessee’s own case in order dated 28.07.2015 (supra). Even perusal of the original Trust Deed shows that the predominant object was educational though noneducational objects were also there. So, merely because of the fact that there were other objects of the Trust, the educational institution did not exist solely for educational purpose. But, in the instant case, the assessee Trust has gone one step further by amending the original Trust Deed vide registered amended Trust Deed dated 26.03.2012 deleting all the non-educational objectives. So, the impugned order passed by ld. Pr. CCIT is not sustainable. Thus when it is proved on record that the assessee Trust is running an educational institution, the application to grant approval u/s 10(23C)(vi) cannot be denied merely because there are other objects in the original Trust Deed also. But, in the instant case, assessee has gone one step further even by amending the original Trust Deed which has been declared invalid by the ld. Pr. CCIT and rejected the application by ignoring the settled principle of law laid down by Hon’ble Apex Court in American Hotel and Lodging Association Educational Institute (2008 (5) TMI 17 - SUPREME COURT OF INDIA ) and Queen’s Educational Society (2015 (3) TMI 619 - SUPREME COURT ). So, we are of the considered view that impugned order is not sustainable, hence set aside and Pr.CCIT is directed to decide the application afresh in view of the observations made herein above. - Decided in favour of assessee.
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