9911796707
TMI Blog2017 (8) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... rred in denying the registration u/s 10(23C)(vi) of the Income tax Act, 1961. 2. That on the facts and in the circumstances of the case and in law, the learned CIT (Exemption) has erred in giving a finding that the trust is not doing charitable objects when assessee is running a higher secondary school which is one of the limb of charitable purpose. 3. That on the facts and in the circumstances of the case and in law, the learned CIT(Exemption) was only required to see if the objects are charitable and whether the society is genuine and nothing more. 4. That the learned AO has given a clear finding in the assessment year 2011-12 that the assessee is engaged solely in educational activities after seeing books of account. 5. That the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter following the due process has been adduced either and further the Ld. CIT(E) observed as under: "9. Vide reply dated 08.08.2016 the applicant society has submitted that, No TDS was deducted or liable to be deducted, as the employees do not fall in the tax bracket. In the instant case, it is further evidence that most of the teachers are being paid paltry monthly emoluments to the extent that none of them began the taxable limit. Even through the affiliation has been taken from Punjab School Education Board SAS Nagar, Mohali the necessary conditions of paying teachers as per 6th pay commission has not been followed. This not only compromises with the quality of education but also is a pointed towards generating unreasonable surplus. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he profit and further submitted that the objection of the CIT(E) are wrong, false and frivolous to the extent that most of the teachers are being paid paltry monthly emoluments to the extent that none of them crossed the taxable limit. Although, the affiliation has been taken from Punjab School Education Board, SAS Nagar, Mohali but the necessary conditions of paying teachers as per 6th Pay Commission has not been followed. This is not only compromise with the quality of education but also is a pointed towards generating unreasonable surplus. No separate balance sheet of the society has been filed. The contrary to the facts as none of the employee or specially teacher has not raised any objection with regard to their pay structure and volun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the Hon'ble Apex Court in the case of Chief Commissioner vs. St. Peter's Educational Society, 385 ITR 66 (SC) as relied upon by the assessee society whereby it was held that the institution makes profit does not necessarily mean it exists for profit and an overall view in year in question object was to make profit as opposed to educating persons to be seen. Further, the Hon'ble Apex Court in the case of Visvesvaraya Technological University vs. ACIT, 384 ITR 37 (SC), whereby it was held that there could be no manner of doubt that the surplus accumulated over the years had been ploughed back for educational purposes and in the said case the Hon'ble Apex Court reminded the conditions of principle laid down in Queen's Education Soc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Matriculation Higher Secondary School Vs. CIT in ITA No.2008/Mads/2015 dealt with the same issue by observing as under: "The primary condition u/s.10(23C)(vi), the assessee shall exist solely for educational purposes and not for purposes of profit. The Chief Commissioner of Income Tax without observing that the assessee not solely existing for educational purpose, he went on proposition that the assessee is not having Memorandum 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 educatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Hence, the exemption sough for the above "Institution" is to be granted. Accordingly, we direct the CCIT to grant exemption U/s 10(23C) (vi) of the Act." Now, coming to the instant case, as it reflects from the details of four assessment years i.e. of 2012-13, 2013,14, 2014-15 & 2015-16, that the amount of receipt has been exceeded more than 1 Crore, therefore, the assessee preferred the registration u/s 10(23C)(iv) and in the previous year as it reflects from the balance sheet, the assessee utilized the amount for the purchase of land for further extension of the School Building etc. that certainly goes to prove that the same is being utilized for the educational purposes only because the Ld. CIT(E) failed to bring on record any contr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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