TMI Blog2013 (7) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... (23C)(vi) is available only to an educational institution existing solely for the purpose of imparting education, while the application has been made by a society having many activities that appear to be other than educational such as to make appropriate efforts for upliftment of public in social and cultural field etc. Therein, this court had held that even though the aims and objects of the society may contain several objects but if it has been proved by material on record that the society is not perusing any other activity apart from eduction then in such case, the society will qualify for grant of approval u/s. 10(23C)(vi) - Following decision of C.P. Vidya Niketan Inter College Shikshan Society vs. Union of India and others [2013 (7) TMI 367 - ALLAHABAD HIGH COURT] - Decided in favour of Assessee. - Writ Tax No. -1714 of 2010 - - - Dated:- 4-7-2013 - Hon'ble Prakash Krishna And Hon'ble Manoj Kumar Gupta,JJ. For the Petitioner : S. K. Garg, A. Bansal For the Respondent : C. S. C., Bharat Agrawal, S. Chopra ORDER 1. The petitioner is a society registered under the Societies Registration Act, 1860 vide registration no. 545/199091 dated 3-9-1990. It is running a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such of its income which falls under any of the clauses stipulated thereunder is exempt and not income from other sources. Thus, it is not necessary that the 'person' which in the instant case is the society, should be having income only from one or other source stipulated under various clauses of section 10 and from no other source. 6. He further submitted that Rule 2-CA of the Income Tax Rules, 1962 which provides for application for approval being made in form 56D by educational institution is procedural one and cannot restrict or whittle down the scope and ambit of the statutory provision, i.e. section 10 which is applicable to a 'person' as defined under section 2(31) of the Act. Alternatively, he submits that it has been the specific case of petitioner society that it is engaged only in running the Education institutions and is not perusing any other object mentioned in its original bye-laws. In support of his contentions, he placed strong reliance on the judgement of this court dated 16-10-2012 passed in Writ petition No. 1185 of 2011 C.P. Vidya Niketan Inter College Shikshan Society vs. Union of India and others. He has also placed reliance on the judgement of the Apex Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Trust vs. Union of India and others, while replying to a specific question whether a society registered under the Societies Registration Act, 1860 is eligible to apply for exemption u/s. 10(23C)(vi) of the Act. The question was answered in favour of the society by holding that the application for approval u/s. 10(23C)(vi) is maintainable at the instance of a society. While taking the aforesaid view, reliance was placed on the judgement of the Apex Court in the case of Aditanar Educational Institution (supra). Relevant paragraph whereof is reproduced below :- "Counsel for the Revenue mainly stressed the plea that the exemption under Section 10( 22) of the Act would apply only to educational institutions as such. According to him, in this case, the assessee might be financing for running an educational institution, but it is not itself an educational institution. As noted earlier, the Tribunal held that the assessee was an institution existing for educational purposes and not for the purposes of earning any profit and the assessee itself could be termed as an "educational institution" coming within Section 10(22) of the Act. The High Court has concurred with this view. The High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal institution" as referred to under section 10(23C)(vi) of the Act and Rule 2-CA of the Income Tax Rules, 1962. 12. The next question which now arises for consideration is whether an application can be rejected on the ground that the memorandum of association of the society provides for various other objects apart from educational activities. In this regard, the argument of learned counsel for the petitioner is that even though under the unamended bye-laws of the society, various other aims and objects were mentioned but according to application for approval and the material on record, the society is only carrying on educational activities. In this regard, specific assertion has been made in paragraph 2 of the application for approval. In paragraph 7 of the application, there is a specific assertion that the only source of income of the society is the nominal fees being charged from students and it has no other source of income. Learned counsel for the petitioner has placed strong reliance on the judgement of this court in the case of C.P. Vidya Niketan Inter College Shikshan Society (supra). We find that there the petitioner was a society which had made an application for appr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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