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2017 (8) TMI 280 - AT - Income TaxGrant of approval u/s 10(23C)(vi) - solely for education purposes or not - CIT observed that various clauses in the trust deed are not as per the provisions of section 10(23C)(vi) - CIT further observed that, founder trustees are taking undue benefits by drawing a huge remuneration - Held that:- In compliance, the assessee-trust had amended its trust deed dated July 26, 2015 removing all the objects other than objects relating to education. What therefore, has to be examined is whether the amended objects clause satisfy the requirement of law or not. Further, where the assessee-trust is already in existence, at the time of seeking the approval, the Revenue can examine whether its activities are being carried out for education purposes or not. In this regard, the learned authorised representative has submitted that the assessee-trust is involved in educational activities and is running Jyoti Vidyapeeth Mahila Vishwavidyalya having more than 2200 students. However, there is a finding given by the learned Principal Chief Commissioner of Income-tax in this regard. The matter relating to powers entrusted to the trustees and its relevance at the time of grant of approval has been discussed in the Central Board of Direct Taxes circular which should be taken into consideration. Regarding the matter relating to payment of remuneration, there are counter-claims without any basis to support the contentions of either of the parties. In the light of the above, as there is not enough material available on record to adjudicate on the matter and the fact that the guidelines laid down by the hon'ble Supreme Court in the case of American Hotel and Lodging Association [2008 (5) TMI 17 - SUPREME COURT OF INDIA] and the Central Board of Direct Taxes while granting the approval not been considered, we hereby set aside the matter to the file of the learned Principal Chief Commissioner of Income- tax to examine the same afresh - Assessee appeal allowed for statistical purposes.
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