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2015 (1) TMI 238 - HC - Income TaxActivity charitable or not - existing solely for educational purpose or not - Refusal to grant registration u/s 10(23C)(vi) – whether the assessee society is engaged in charitable/educational activities or not - Held that:- The Society came into existence in the year 1910 and on the land, which was taken for 99 years lease, the petitioner has constructed a building for school - So, it is not correct to say that it is not providing education - no other activity was proved by the Department - the CCIT has already granted exempted u/s 12A/12AA of the Income Tax Act w.e.f. 1.4.2007 – Relying upon AMERICAN HOTEL & LODGING ASSOCIATION EDUCATIONAL INSTITUTE Versus CBDT & OTHERS [2008 (5) TMI 17 - SUPREME COURT OF INDIA] - merely because there are other objects of the society does not mean that the educational institution is not existing solely for educational purpose - the emphasis of the word "solely" is in relation to the educational institution, which is running not for the purpose of making profit and is not in relation to the objects of the society. Applicability of third proviso - Held that:- The requirement mentioned in the third proviso can only be tested after the end of the previous year when income is ascertained and thereafter applied. - The threshold conditions are actual existence of an educational institution and approval of the prescribed authority for which every applicant has to move an application in the standardized form in terms of the first proviso - If the prerequisite conditions of actual existence of the educational institution is fulfilled then the question of compliance with the requirements as spelt out in the other provisos would arise - the facts were not analyzed by the authorities below in a proper manner - the documents which were produced, it appears prima facie contradictory facts, which need further investigation – thus, the order is set aside and the matter is remitted back to the CCIT and direction made to reconsider the application de-novo for exemption u/s 10(23C) (vi) for the AY 2008-09 and onwards strictly on merit – Decided in favour of assessee.
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