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M/s Kids-R-Kids International Educational & Social Welfare Trust, Versus The Pr. C.C.I.T.,N.W. Region Chandigarh

2016 (3) TMI 1083 - ITAT CHANDIGARH

Approval under section 10(23C)(vi) rejected - Held that:- The provisions of section 10(23C)(vi) of the Act is quite clear to the fact that the only reason for denial of said exemption can be the case where the officer is not satisfied as to the genuineness of the activities of the assessee. By not applying the provisions of the Right to Education Act, it cannot be said that the assessee is not doing any genuine educational activities. For non-compliance of Right to Education Act, there is a spec .....

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issioner of Income Tax has not doubted the genuineness of the activities of the society, we hereby direct him to grant registration under section 10(23C) of the Act. - Decided in favour of assessee. - ITA No. 781/Chd/2015 - Dated:- 10-3-2016 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. RANO JAIN, ACCOUNTANT MEMBER For the Appellant: Shri Anil Batra For the Respondent: Shri Manoj Mishra, CIT DR O R D E R PER RANO JAIN, A.M. : The appeal .....

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level. It is a registered trust, whereby the trust deed was registered by Sub Registrar, Chandigarh on 29.11.2000. It is also registered under section 12AA of the Income Tax Act, 1961 (in short the Act ) by CIT-II, Chandigarh vide his order dated 28..12.2012. During the year, the assessee trust applied for grant of exemption under section 10(23C), clause (vi) of the Act vide application dated 24.9.2014 in Form No.56D. The Principal Chief Commissioner of Income Tax issued a letter to the society .....

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ipal Chief Commissioner of Income Tax confronted the assessee that under the Right of Children to Free & Compulsory Education Act, 2009, there is no exception made for Unaided Minority Schools. The assessee could not bring any exception provided to Minority Institutions under the Act. In this way, the Principal Chief Commissioner of Income Tax held that even an unaided school is required to comply with the provisions of Right of Children to Free & Compulsory Education Act, 2009 and in th .....

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s not existing solely for Educational Purposes , and hence not entitled to the exemption available U/s 10(23C) (vi) of the Income Tax Act, 1961. The Trust be granted the exemption under the said section. 3. The Ld. Pr. Chief Commissioner of Income Tax, by relaying exclusively on the provision of the Right of Children to Free And Compulsory Education Act, 2009, for denying the exemption U/s 10(23C)(vi) of the Income Tax Act, not only has acted contrary to provision of the Income Tax a .....

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ir & unjust. The appellant be granted exemption U/s 10 (23 C) (vi) of the Income Tax act, 1961. 5. The Trust had moved application for Grant of Registration U/s 10 (23C) (vi) of the Act for the A.Y. 2014-15 on 24-09-2014, which was taken up for consideration on 29th September 2015 at 3:30 PM. The Ld. Pr. Chief Commissioner of Income Tax, by confronting the assessee with the RTE on the last moment, has deprived the assessee of reasonable opportunity and has passed on o .....

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ns of Right of Children to Free & Compulsory Education as per the judgment of Hon'ble Supreme Court, three Judges Bench in the case of Society for Un-aided Private Schools of Rajasthan Vs. UOI & Anr., WP No.95 of 2010, dated 12.4.2014 However, as per a latest judgment of the Hon'ble Supreme Court, five Judges Bench in the case of Pramati Educational & Cultural Trust & Ors. Vs. UOI & Anr., WP © No.152 of 2013, dated 6.5.2014, it has been held that RTE cannot be en .....

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der section 10(23C)(vi) of the Act should not be denied to the assessee only because it has not complied with one of the conditions of Right to Education Act. The Principal Chief Commissioner of Income Tax has not commented on the activities of the society and just on this basis has rejected the application of the assessee. 5. The learned D.R. relied on the order of the Principal Chief Commissioner of Income Tax and further stated that the school was being run in contravention to the .....

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he Principal Chief Commissioner of Income Tax has denied it the approval under section 10(23C)(vi) of the Act. 7. The provisions of section 10(23C)(vi) of the Act reads as under : Any University or other educational institution existing solely for educational purposes and not for purposes of profit, other than those mentioned in sub-clause (iiiab) or sub -clause (iiiad) and which may be approved by the prescribed authority. 8. The recognition under this section is given t .....

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as under : Provided that the fund or trust or institution [or any university or other educational institution or any hospital or other medical institution] referred to in sub-clause (iv) or sub-clause (v) [or sub clause (iv) or sub-clause (via) shall make an application in the prescribed form and manner to the prescribed authority for the purpose of grant of the exemption, or continuance thereof, under sub-clause (iv) or sub-clause (v) [or sub-clause (vi) or sub-clause (via)]. < .....

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case may be, as it thinks necessary in order to satisfy itself about the genuineness of the activities of such fund or trust or institution or any university or other educational institution or any hospital or other medical institution, as the case may be, and the prescribed authority may also make such inquiries as t deems necessary in this behalf. 9. As per these, the assessee who wants to get approved under section 10(23C)(vi) of the Act has to make an application to the prescrib .....

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the activities . In view of this, we understand that the only requirement for granting registration under this section is ssatisfaction of the prescribed authority with regard to the genuineness of the activities of the assessee. Very conveniently, we can conclude that for granting registration, the prescribed authority has to do whatever he thinks fit in order to satisfy himself about the genuineness of the activities of the trust. 10. Now in this background we will analysis the fac .....

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come Tax Act, in our view cannot be a ground for not granting approval under section 10(23C)(vi) of the Act. The Income Tax Act is self-contained Act and a code in itself. The authorities acting under the dictate of the Income Tax Act has to restrain themselves within the provisions of the Income Tax Act only. Nowhere in the provisions of the Act it has been prescribed that non compliance of any provisions of any other Act would lead to denial of registration under this Act. This view has been s .....

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Central Act enshrined in "List I" of the Constitution of India the tax adjudicator/judge empowered by a Central Act cannot usurp the power and role of an authority which as per the Constitutional scheme has been entrusted upon the state Administration and in this case on the Department of Education, Government 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 ph .....

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