TMI Blog2016 (3) TMI 760X X X X Extracts X X X X X X X X Extracts X X X X ..... hence, for the assessment year 2014-15, the petitioner had multiple objectives and therefore, did not exist solely for educational purpose. As already stated, the amendment made in the Memorandum and Articles of Association can only be prospective and in that case, it shall apply only for the assessment year 2015-16 and cannot be considered for the assessment year 2014-15. Considering all these aspects, the respondent had rightly rejected the Form-56 D filed by the petitioner finding that the assessee does not qualify under Section 10(23C)(vi) of the Act for the assessment year 2014-15. - Decided against assessee - W. P. No. 34102 of 2015, M. P. No. 1 of 2015 - - - Dated:- 11-3-2016 - M. Duraiswamy, J. For the Appellant : Dr. Anita Sumanth For the Respondent : Mr. J Narayanasamy, Standing Counsel (IT) ORDER The petitioner has filed the above Writ Petition to issue a writ of certiorarified mandamus to call for the records dated 30.09.2015 on the file of the respondent and to quash the same and to direct the respondent to grant exemption sought for by the petitioner in terms of Sec.10(23C)(vi) of the Income Tax Act. 2. According to the petitioner, it is a S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 014. The said application was rejected by the order dated 30.09.2014 on the ground that the petitioner Society did not exist solely for educational purpose and in fact had multiple objectives and therefore, the Society does not qualify under Section 10 (23C)(vi) of the Act in question. According to the petitioner, the respondent came to the said conclusion on the basis of existence of the 4th objective in the original memorandum that has been deleted and it has never been acted upon. The show cause notice issued on 23.09.2015 to the petitioner calling upon certain clarification. 4. According to the petitioner, though the petitioner has been incorporated originally with 5 objectives, including an objective relating to the undertaking of various programmes for the development of the Society and though they form part of the original objectives, the object was never translated to action and no activity was carried out in this regard by the petitioner. According to the petitioner, the existence of the said objective was redundant and was never acted upon and the petitioner decided to amend the objectives by deleting the same. The petitioner contended that the original objects of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulfilled that the question of compliance with the 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 application for initial approval. 6. Countering the submissions made by the learned counsel for the petitioner, Mr.J.Narayanasamy, learned Standing Counsel appearing for the respondent submitted that in view of the 4th objective mentioned in the Memorandum and Articles of Association, the claim made for exemption made by the petitioner cannot be granted. That apart, the learned counsel submitted that since the amendment of the said clause was made from 02.06.2014, it shall only apply for the assessment year 2015-16 and cannot be considered for the assessment year 2014-15. 7. In support of his contentions, the learned standing counsel relied upon an unreported order of this Court made in W.P.No.28289 of 2010 dated 13.12.2010 wherein this Court held as follows: The petitioner institution is gover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... morandum and Articles of Association. However, the petitioner contended that though the deletion was made on 02.06.2014, the petitioner was engaged solely in the activity of education alone and therefore, they are entitled for exemption under Section 10(23C)(vi) of the Income Tax. When there is a specific Clause mentioned in the Memorandum and Articles of Association, the respondent can only go by the documentary proof available before him and he cannot go beyond that and give a finding contrary to the recitals found in the document. 9. It is not in dispute that Clause-4 of the Memorandum and Articles of Association was deleted on 02.06.2014 and the effect of deletion of the said Clause will come into force only prospectively and it cannot be retrospective. As per Section 2(15) of the Act Charitable purpose means charitable purpose includes relief of the poor, education, medical relief, [preservation of environment (including watersheds, forests and wild life) and preservation of monuments or places or objects of artistic or historic interest] and the advancement of any other object of general public utility . Clause-4 of the objectives shall not come within the meaning of ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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