9911796707
TMI Blog2016 (3) TMI 1066X X X X Extracts X X X X X X X X Extracts X X X X ..... The order of the learned CCIT is bad and erroneous in law and against the principles of natural justice. 2) The learned CCIT erred in not at all considering the details filed in the course of the proceedings before him. 3) The learned CCIT erred in rejecting the application for exemption u/s.10(23C)(vi) of the appellant by taking a vary narrow view that the appellant is not having independent existence with clear cut objectives, without considering the fact that the appellant school has been consistently filing its income tax returns and the same have not been negated by the Revenue all these years and that the appellant school has been considered and treated as a separate entity under Tamilnadu Recognized Private Schools (Regulation) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nent recognition has been granted from LKG to 8th Standard for the period from 1.6.2014 to 31.5.2017. For the 9 to 12th standard, the period of recognition has been granted from 1.6.2014 to 31.3.2017. As per the assessee, the school has been constituted on the basis of orders of Director of School Education; the return of income for the above school has been filed in the status of AOP (Educational Institution) with the Secretary Cum Correspondent of the school and Asst. Secretary of the school. Excess of income earned was credited to the Capital fund account. The school was started with Zero Corpus Fund. As per the assessee, no initial contribution or subsequent contribution as capital was given by the Founders of the institution. As per th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it objective. It is seen this that the school is totally controlled by Sengunthar Education Board which is registered under the Society Registration Act. The Secretary and Assistant Secretary of this school are appointed by Sengunthar Educational Board, which is the separate entity of its own. No memorandum of the Association or the Articles of the Schools or bye laws exists for the school. There was zero corpus fund for the start of the school. For Regulation purposes, permission has been taken from the Director of School Education, Chennai. In the absence of any objective in constitution of the AOP, school cannot said to be existing only for educational purpose. As per the copy of the Balance sheet as on 31.3.2013 furnished before CCIT, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndard for the period 01.06.2014 to 31.05.2017 and for the 9th to 12th Standard from the same period recognition granted from 01.06.2014 to 31.03.2017. It is also admitted fact that the present assessee has been filing the return of income under the status of 'AOP' (Educational Institution). Now the objection of the Department is that the assessee is not having independent existence with clear cut objectives. As such it cannot be considered for granting exemption u/s.10(23C)(vi) of the Act and also it was alleged that huge amount is due from Sengunther Education Board to the assessee and the assessee was not owning any building and it was functioning from rented premises taken from Sengunther Education Board to whom the assessee is paying re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... um of Association or Trust deed so as to carry on the function of the assessee. But the fact brought on record suggests that the assessee is an "AOP", managed by Sengunther Education Board which is a registered body under the Society Registration Act in the year 1946 vide Registration No.S/8/1946. The above education board is managing the assessee school with the committee Members of the said Education Board and constituted the office Bearers of the institution and duly filing the return of income. It is to be observed that there is no expressed definition for "Institution" under the Income Tax Act. Hence, we have to consider the General meaning defined in the Webster's New Dictionary, the word "Institution" means an established or organize ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
