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M/s Infant Jesus Education Society, C/o St. Stephen's Preparatory School Versus Pr. Chief CIT, Chandigarh

2016 (5) TMI 816 - ITAT CHANDIGARH

Grant of approval under section 10(23C)(vi) rejected - schools governed by RTE Act - Held that:- A bare perusal of the provisions of Section 2(n) read with Section 2(f) would reveal that the schools which are covered by the provisions of RTE Act are those which impart elementary education, meaning education from class 1 to class 8. In the present case it is an undisputed fact that the school run by the assessee society is imparting education below class 1. Clearly the asessee society is not a sc .....

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assessee society is not imparting elementary education in the first place therefore the question of attracting the provision of section 12(1)(c) and the proviso thereto does not arise at all. Therefore in our considered opinion the school is not governed by the provision of RTE Act at all and the basic premise of the Ld. Principal Chief Commissioner of Income Tax for denying approval of the assessee society therefore fails.

Thus as the school is not covered under the RTE Act, we set a .....

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sioner of Income Tax , N.W. Region, Chandigarh dt. 30/09/2015 , rejecting the application of the assessee for grant of approval under section 10(23C)(vi) of the Income Tax Act, 1961. 2. Briefly stated the facts of the case are that the assessee is a society registered under the Society Registration Act and is running a Preparatory School in the name of St. Stephen's Preparatory School, Sector 46A , Chandigarh since 2006 for student from play to KG. During the year the assessee society applie .....

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Education Act was not applicable to it because the said Act was applicable from class 1st onwards and to Children of age of 6 to 14 years. The Principal Chief Commissioner of Income Tax confronted the assessee that under the Right of Children to Free And Compulsory Education Act, 2009 the provisions are applicable for admission to pre school education also referring to provision of Section 2(n) and Section 12(1)(c) of the RTE Act. Thereafter the Principal Chief Commissioner of Income Tax, held t .....

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proval under section10(23C)(vi) of the Act. 3. Aggrieved by the same the assessee filed the present appeal before us and raised the following grounds: 1. That the ld. Principal Chief Commissioner of Income Tax has erred in law as well as on facts in rejecting the application filed for registration u/s 10(23C)(vi) in a summary manner which is illegal, arbitrary and unjustified. 2. That the registration has been refused on a misplaced appreciation of the Right to Education Act which is not applica .....

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e. Referring to the provision of section 2(n) of the RTE Act. Ld. Counsel stated that the RTE Act applied to schools imparting elementary education only which has been defined under section 2(f) to mean education from first class to eighth class. Ld. Counsel stated that since the assessee society was not imparting education from class one to class eighth it could not be said to be imparting elementary education and therefore is not covered under the definition of schools given under the RTE Act. .....

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school run by the assessee society was not imparting elementary education the question of being covered by the provision of section 12(1)(c) does not arise at all. Ld. Counsel for the assessee therefore stated that since the RTE Act was not applicable to the assessee the denial of exemption under section 10(23C)(vi)by the Principal Chief Commissioner of Income Tax was bad in law. Alternatively Ld. Counsel for the assessee pleaded that the Chandigarh Bench of the ITAT held in the case of M/s Kids .....

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the purpose of profit and therefore had been rightly denied approval under section 10(23C)(vi) of the Act. 6. We have heard rival submission and perused the orders of the authorities below and also the documents placed before us. 7. We hold that the Principal Chief Commissioner of Income Tax had erred in denying approval to the assessee society under section 10(23C)(vi) for not complying with the provision of the RTE Act. 8. We find that in the first place the assessee society is not covered und .....

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part of its expenses from the appropriate Government or the local authority. (iii) A school belonging to specified category; and (iv) An unaided school not receiving any kind of aid or grants to meet its expenses from the appropriate Government or the local authority; Section 12(1) For the purposes of this Act, a school, - (a)... (b)... (c) specified in sub-clauses(iii) and (iv) of clause (n) of section 2 shall admit in class I, to the extent of at least twenty-five per cent. of the strength of .....

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of RTE Act are those which impart elementary education, meaning education from class 1 to class 8. In the present case it is an undisputed fact that the school run by the assessee society is imparting education below class 1. Clearly the asessee society is not a school as per the definition given in the RTE Act in section 2(n) and is therefore not covered by the provisions of the RTE Act. Further the provisions of Section 12(1)(c) read alongwith the proviso reveals that the where schools impart .....

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hool is not governed by the provision of RTE Act at all and the basic premise of the Ld. Principal Chief Commissioner of Income Tax for denying approval of the assessee society therefore fails. In any case we find that the Chandigarh Bench of the ITAT in the case of Kids - R- Kids International has held that by not complying with the provision of the RTE Act , it cannot be said that the assessee society is not doing any genuine educational activity and approval under section 10(23C)(vi) cannot b .....

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ct only. Nowhere in the provisions of the Act it has been prescribed that noncompliance of any provisions of any other Act would lead to denial of registration under this Act. This view has been subscribed by the Delhi Bench of the I.T.A.T. in the case of Civil Services Society Vs. DIT (Exemption) 93 DTR 314 (Del) in the following term : "6.2 No doubt to have a social conscience is a laudable human desire and the desire to ensure compliance in 9 letter and spirit to the stated government po .....

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t of National Capital Territory of Delhi. An authority constituted under the Central Act herein the Indian Income Tax Act cannot act on the basis of its own personal beliefs and philosophy however laudable, they may be as they have no role to play as the issues are to be decided and concluded on the basis of rules and provisions of the Income-tax Act, herein - section 2(15) of the Act. The decisions are not to be coloured or stained by personal whims and biases and are to be illuminated by the I .....

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