TMI Blog2011 (11) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... lia for the Appellant K.K. Bissa for the Respondent JUDGEMENT 1. This writ petition has been filed by the petitioner assessee being aggrieved of the order dated 27/1/2010 passed by the Chief Commissioner of Income Tax, Udaipur under Section 10(23C) of the Income Tax Act, 1961 rejecting the application of the petitioner Trust for exemption from tax for Assessment Year 2008-2009 in prescribed Form No. 56D. The petitioner Trust runs a medical college with attached hospital of 450 beds and imparts such education to 150 students of MBBS Course besides running the colleges of Pharmaceutical, Physiotherapy and Nursing having separate intake of students. During the relevant year 2008-2009, the admissions by the petitioner Trust wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rightly and legally made by the petitioner Trust cannot be curtailed or shut in indirect manner by denying the exemption from income tax under Section 10(23C) of the Act for which the periodical sanction from the Chief Commissioner of Income Tax was required. He submitted that according to the petitioner Trust, such admissions were legally made and merely because some students challenged the admissions, which litigation is pending before the Apex court as of now, it cannot be said that petitioner was not running the educational institution for educational purposes without profit motive as per the provisions of Section 10(23C) of the Act. He submitted that this is the only reason assigned by the Chief Commissioner of Income Tax in the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner has committed any such illegality and no such opinion could be formed by the learned Chief Commissioner of Income Tax so long as the matter is pending before the Supreme Court of India and is not decided against the petitioner Trust. 6. Right to litigate a particular issue in the Court of Law is a legal right of any Institution or a Charitable Trust, who is seeking exemption from income tax for which sanction is required by the competent authority within the parameters like no profit motive, or object of education of the Trust etc. laid down under Section 10(23C) of the Act which are relevant and not the admission procedure undertaken by the petitioner Trust. Nexus between the profit motive and alleged illegal admission is too rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng in view the above discussion and the decision of the Hon'ble High Court, I hereby reject the trust's application for approval under Section 10(23C) (vi) and (via) for A.Y. 2008-09 onwards. Sd/- (Mukesh Bhanti) Chief Commissioner of Income-tax, Udaipur." 7. The subsequent order granting such approval passed on 17/1/2011 subject to usual conditions reads as under:- "In exercise of powers conferred on me by the sub-clause (vi) of clause (23C) of Section 10 of the Income tax Act, 1961 (43 of 1961) read with rule 2CA of the I.T.Rules, 1962, I Chief Commissioner of Income tax, Udaipur hereby accord approval to M/S. GEETANJALI UNIVERSITY TRUST, UDAIPUR (PAN: AAATG9525E) for the purpose of the said section for the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
