TMI Blog2018 (6) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... : Ms. Ashima Neb, Sr. DR ORDER These appeals are filed by the assessee against the separate orders both dated 29.8.2017 passed by Ld. CIT(A), Dehradun for Assessment Years 2014-15 2015-16 respectively. Since the issues involved in these appeals are common and identical, hence, the appeals were heard together and are being disposed of by this common order for the sake of convenience, by dealing with ITA No. 6954/Del/2017 (AY 2014-15). 2. The grounds raised in both the appeals are common, hence, we are only reproducing the grounds raised in ITA No. 6954/Del/2017 (AY 2014-15) as under:- 1. That in the facts and the circumstances of the case and in law the impugned order passed under section 250(6) of the Income Tax Act, 1961 by the Ld. Commissioner of Income Tax (Appeals), Dehradun is based on conjectures, surmises, assuming incorrect facts and incorrect application of Law. 2. That the Ld. Commissioner of Income Tax (Appeals), Dehradun has erred in law and on facts in cancelling the approval u/s 10(23C)(vi) by making the following observations: a. That there is No Element of Charity and the activities are purely commercial in character. b. That the mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Tribunal has granted the approval u/s. 10(23C)(vi) of the Act and allowed the appeal of the assessee. In view of above, he requested to follow the same ratio in the both the present appeals and appeals of the assessee may be allowed. 6. On the contrary, Ld. DR relied upon the orders of the authorities below and reiterated on the the findings of the authorities below. 7. I have heard both the parties and perused the records, especially the impugned order as well as the decision of the Coordinate Bench-C, ITAT, New Delhi in assessee s own case decided on 30.1.2018 title Bhartiya Gram Sewa Niketan Udyog Mandal vs. CCIT, Dehradun passed in ITA No. 3708/Del/2015 (AY 2013-14) wherein the Tribunal has held as under:- 7. We have heard both the parties and perused all the records placed before us. The Hon ble Uttarakhand High Court decision in case of CIT vs. Queens Education Society was overruled by the Hon ble Supreme Court wherein it is held that: 23. The Punjab and Haryana High Court, by the impugned judgment dated 29th January, 2010 expressed its dissatisfaction with the view taken by the Uttarakhand High Court in the case of Queen s Educational Society as fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the educational institution exists for profit. ( 2) The provisions of Section 10(23C)(vi) of the Act are analogous to the erstwhile Section 10(22) of the Act, as has been laid down by Hon'ble the Supreme Court in the case of American Hotel and Lodging Association (supra). To decide the entitlement of an institution for exemption under Section 10(23C)(vi) of the Act, the test of predominant object of the activity has to be applied by posing the question whether it exists solely for education and not to earn profit [See 5-Judges Constitution Bench judgment in the case of Surat Art Silk Cloth Manufacturers Association (supra)]. It has to be borne in mind that merely because profits have resulted from the activity of imparting education would not result in change of character of the institution that it exists solely for educational purpose. A workable solution has been provided by Hon'ble the Supreme Court in para 33 of its judgment in American Hotel and Lodging Association's case (supra). Thus, on an application made by an institution, the prescribed authority can grant approval subject to such terms and conditions as it may deems fit provided that they are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious propositions of law culled out by us in para 8.13 and various other paras. 8.16 The writ petitions stand disposed of in the above terms. 24. The view of the Punjab and Haryana High Court has been followed by the Delhi High Court in St. Lawrence Educational Society (Regd.) v. Commissioner of Income Tax Anr., (2011) 53 DTR (Del) 130. Also in Tolani Education Society v. Deputy Director of Income Tax (Exemption) Ors., (2013) 351 ITR 184, the Bombay High Court has expressed a view in line with the Punjab and Haryana High Court view, following the judgments of this Court in the Surat Art Silk Manufacturers Association Case and Aditanar Educational Institution case as follows: .. The fact that the Petitioner has a surplus of income over expenditure for the three years in question, cannot by any stretch of logical reasoning lead to the conclusion that the Petitioner does not exist solely for educational purposes or, as that Chief Commissioner held that the Petitioner exists for profit. The test to be applied is as to whether the predominant nature of the activity is educational. In the present case, the sole and dominant nature of the activity is educa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is of great importance in that assessing authorities must continuously monitor from assessment year to assessment year whether such institutions continue to apply their income and invest or deposit their funds in accordance with the law laid down. Further, it is of great importance that the activities of such institutions be looked at carefully. If they are not genuine, or are not being carried out in accordance with all or any of the conditions subject to which approval has been given, such approval and exemption must forthwith be withdrawn. All these cases are disposed of making it clear that revenue is at liberty to pass fresh orders if such necessity is felt after taking into consideration the various provisions of law contained in Section 10(23C) read with Section 11 of the Income Tax Act. It is pertinent to note that the main objects of the trust are to encourage backward and discarded people towards education and social development works, helping children by providing education and livelihood to them etc. The same was at no point amended by the assessee. Also the trust runs a college that helps in enhancing the future of students by providing the education and making ..... X X X X Extracts X X X X X X X X Extracts X X X X
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