TMI Blog2016 (11) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... mere receipt of an interest free loan is not indicative of a commercial activity for profit. However, whether the loan was in fact so granted as alleged by the petitioner is another matter which respondent No.3 would consider in the event of a fresh application or an additional affidavit in support of the existing application being filed. Whether there is nothing to indicate as to what would happen to the construction put up on the land leased by the company to the petitioner for the purpose of setting up the educational institution - Held that:- The company and the petitioner had admittedly entered into a lease deed dated 12.10.2011 under which the company leased in favour of the petitioner land measuring in the aggregate about 5,600 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income Tax, Amritsar-respondent No.3, rejecting its application for registration under Section 10 (23C)(vi) of the Income Tax Act, 1961 for the year 01.04.2012 onwards. 2. The petitioner has filed an application for registration under Section 10 (23C) (vi) on 27.09.2013. Section 10 (23C)(vi) reads as under: Incomes not included in total income 10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included- (23C) any income received by any person on behalf of - (vi) any university or other educational institution existing solely for educational purposes and not for purposes of profit, other than those mentioned in sub-clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the petitioner would confine its activities with respect to educational purposes and for no other purposes charitable or otherwise. If such an undertaking is furnished, whether in the same application or by way of a separate application with this clarification and with undertakings to that effect, the respondents would consider the same afresh. 5. By the impugned order, the application appears to have been rejected also on the ground that the petitioner has shown M/s Amarnath Builders Private Limited (for short the 'Company') as a creditor for the sum of about ₹ 37 lacs. It was inferred from this that the petitioner is involved in commercial activities for profit. Mr. Jain states that this is an interest free loan grante ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ears was extendable on terms and conditions to be mutually agreed upon. On the expiry of the lease by efflux of time, the lessee, i.e. the petitioner would be entitled to remove the construction upon the leased land. Clauses 1 6 of the lease deed read as under: 1. The school building at the above mentioned sites shall be constructed by the owner/lesser and the construction charges shall not charged to the Lessee. After construction of building. The same shall be handed over to the Lessee to run the schools. 6. That the lessee has taken the above said school for the education use and the land for the construction of school use at their own costs risk and responsibility and whenever the lessee vacate the above said building then t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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