TMI Blog2017 (12) TMI 1324X X X X Extracts X X X X X X X X Extracts X X X X ..... ren from various villages, engaged to worth with reference to Child Labour Act and giving them admission in school. The intention is to educate the children, who are exploited in villages with reference to Child Labour Act. This object in our view is ancilliary to the main object of education. Therefore, we are of the view that the objection of Ld.CIT(E) is not maintainable. Considering the above, we set aside the order of Ld.CIT(E) and restore the issue to the file of Ld.CIT(E) to grant exemption, if other conditions are satisfied. Ld.CIT(E) can also place a condition that if the funds are utilised for any other purpose other than for education, the exemption can be withdrawn at any time, so as to protect the interest of Revenue. - I.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms and objects of the society mentioned in the Memorandum of the society submitted along with its application is found to include the following: 4. We are making efforts to pick up the children from various villages who are engaged to worth and giving admission with reference to child labour Act . 4. It can be seen that the aims and objects of the society mentioned supra is not solely for educational purpose. As seen from the information filed by the assessee, the society is engaged in carrying out Educational activities in the name and style of 'Ganga Pharmacy College'. The objective mentioned supra speaks of giving admission with reference to child labour Act. The society runs only a pharmacy college and the objecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered the issue. Hon'ble jurisdictional High Court in the above referred case of New Noble Educational Society Ors. Vs. CCIT Anr. [334 ITR 303] has considered the issue and decided as under: Exemption under s. 10(23C)(vi)-Educational institution- Educational vis-a-vis other purposes- If there are several objects of a society some of which relate to education , and others which do not, and the trustees or the managers, in their discretion, are entitled to apply the income or property to any of those objects, the institution would not be eligible to be regarded as one existing solely for educational purposes, and no part of its income would be exempt from tax-But if the primary or dominant purpose of an institution is educ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion would not be eligible to be regarded as one existing solely for educational purposes, and no part of its income would be exempt from tax. In other words, where the main objects are distributive, each and everyone of them must relate to education in order that the institution may be held entitled for the benefits under s. 10(23C)(vi). But if the primary or dominant purpose of an institution is educational , another object which is merely ancillary or incidental to the primary or dominant purpose would not disentitle the institution from the benefit. The test which has, therefore, to be applied is whether the object, which is said to be non-educational, is the main or primary object of the institution or it is ancillary or incidental t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied that the amendment is not contrary to the provisions of the Act, registers and certifies such an alteration, would it be a valid alteration under the Act. It is only from the date the Registrar certifies the alteration that the amendment, to the objects of the society, comes into force. The Chief CIT cannot be faulted for rejecting the applications seeking approval under s. 10(23C)(vi). (Paras 30 to 32) Publication of journals, magazines, or other media for diffusion of useful knowledge for promotion of education is incidental and ancillary to the primary object of the society i.e., to run an educational institution. It is the applicant's case that publication of journals and magazines is to provide knowledge to students ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bject of the institution or it is ancillary or incidental to the dominant or primary object which is educational . 6. Considering the issue in the light of the principles therein, we are of the opinion that the fourth object is only identical and ancillary to the primary object of education. It may be true that assessee does not run a school to consider this objective, but the objects of the trust are incorporated for future use only. If there is no object, the trust would be prevented in opening/running a school. Therefore, having an object should not prevent the assessee in claiming exemption of income u/s. 10(23C)(vi). Moreover, the reading of object (badly drafted indeed, giving different meaning) indicates that the main intention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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