TMI Blog2010 (5) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... rely because the society has earned some profit, does not make the society disentitle for the exemption - The Chief Commissioner, Income Tax, Panchkula is directed to decide the application of the petitioner - 8349 of 2009 (O&M) - - - Dated:- 26-5-2010 - Coram:- Hon'ble Mr. Justice Adarsh Kumar Goel Hon'ble Mr. Justice Alok Singh Present: Ms. Manisha Gandhi, Advocate for the petitioner. Mr. S.K. Garg, Narwana, Advocate for the respondent. Alok Singh, J. 1. This is a writ petition filed invoking jurisdiction of this Court under Articles 226/227 of the Constitution of India, assailing the order dated 18.3.2009 passed by the Chief Commissioner, Income Tax, Panchkula, rejecting the application of the petitioner for g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore this Court. 4. We have heard learned counsel for the petitioner and perused the record. 5. The Chief Commissioner, Income Tax, Panchkula, in paras 13 and 15 of the order has held as under:- "13. From the above amendment in the definition of "Charitable purpose", it is seen that with effect from 1.4.2009 i.e. from the assessment year 2009-10 onwards, the scope of the term "advancement of any other object of general public utlity" as a 'charitable purpose' has been considerably restricted by excluding from its ambit any activity in the nature of the trade, commerce or business or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties are, therefore, akin to being commercial with profit motive and cannot be regarded as charitable. Merely because the society has ex-officio members from the Government of Haryana/University and that it has to furnish reports to Haryana Government cannot entitle it to claim exemption. For considering whether the purposes of an institution are charitable, real nature of its activities has to be seen which as discussed in detail above, are in essence, of commercial nature with profit motive." 6. There is no dispute that the petitioner - society is set up by the Government of Haryana in order to facilitate and simplify the admission procedure to the Technical Institutes. There is also no dispute that the petitioner - society is grantin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n stipulation of conditions and compliance thereof. 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. It is only if the pre-requisite condition of actual existence of the educational institution is fulfilled that the question of compliance of requirements in the provisos would arise. We find merit in the contention advanced on behalf of the appellant that the third proviso contains monitoring conditions/requirements like application, accumulation, deployment of income in specified assets whose compliance depends on events that have not taken place on the date of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpliance of those conditions by the appellant. The compliance of the terms and conditions stipulated by the PA would be a matter of decision at the time of assessment as availability of exemption has to be evaluated every year in order to find out whether the institution existed during the relevant year solely for educational purposes and not for profit." 8. In Dera Baba Jodh Sachiar Vs. Union of India and another (C.W.P. No.68 of 2006 decided on 22.02.2010), we, after placing reliance on the judgement of the Supreme Court in American Hotel and Lodging Association Educational Institute Vs. Central Board of Direct Taxes and others, (2008) 7 DTR (SC) 183, have held as under:- "Having perused the order impugned, we find that learned Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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