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TMI Blog2017 (4) TMI 1409X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing grounds of appeal : 1. That the Worthy Chief Commissioner of Income Tax, Ludhiana has erred in rejecting the appellant's application for grant of approval U/S 10(23C) (vi) of the Income Tax Act 1961. 2. That the application for grant of approval under section 10(23C)(vi) has been rejected against the facts and circumstances of the case by not considering our submissions properly. 3. The brief facts relating to the case are that the assessee had filed an application in form No. 56D dated 24.09.2014 requesting for grant of exemption/approval under section 10(23C)(iv) of the Act for assessment year 2014-15. The ld. Chief CIT rejected the application filed by the assessee for the reason that the dissolution clause in the Memor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing medical services. The ld. counsel for the assessee drew our attention to the submissions made before the Ld. Chief CIT in this regard and also the copy of Memorandum of Association of the society placed at Paper Book page 9 placed before us. The ld. counsel for the assessee further stated that the Chief CIT had also not doubted the activities of the assessee society. The ld. counsel for the assessee drew our attention in this regard to the submissions made before the Chief CIT in which it was stated that it was running a Nursing College on the land owned by it which was received as donation from one Shri Joginder Singh. The ld. counsel for the assessee also submitted that the assessee society is affiliated under the Indian Nursing Counc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the ld. Chief CIT and also perused the documents relied upon before us. 8. The issue before us relates to grant of approval under section 10(23C)(vi) of the Act. The scope of powers of the Chief Commissioner of Income Tax before granting approval under the said clause have been provided in the second proviso to Section 10 (23C)(vi) which states as under : "Provided further that the prescribed authority, before approving any fund or trust or institution or any university or other educational institution or any hospital or other medical institution, under subclause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via), may call for such documents (including audited annual accounts) or information from the fund or trust or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee society was registered with the Indian Nursing Council, New Delhi for various programs and courses. Copy of the affiliation letter of the Indian Nursing Council was also enclosed. It was also submitted that the assessee society was affiliated with Baba Farid University of Health Sciences, Faridkot and copy of affiliation letter was also enclosed. 11. We find that based on the above inquiry conducted by the Ld.Chief CIT and the documents placed before him, no adverse view regarding either the objects or the activities of the assessee society not being wholly for the purpose of education, which is a sine qua non for the purpose of claiming exemption u/s 10 (23C)(vi), has been taken by him. Therefore it is evident that Ld.Chief CIT was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Act, hence making it ineligible for grant of approval . 13. We find no merit in this contention of the Ld.Chief CIT. Firstly, the provisions of Section 13 (3) of the Act are not relevant for the purpose of granting approval under section 10 (23C)(vi) of Income Tax Act. As stated above, the only issue to be examined is the genuineness of the activities of the Trust. The benefit accruing to persons specified under section 13 (3) cast no reflection on the genuineness of the activities of the Trust. Even otherwise Section 13 of Income Tax Act is relevant only for the purpose of exemption granted under section 11 of the Act and is not relevant for the purposes of exemption granted u/s 10 (23C)(vi) of the Act at all. Moreover even for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been found to be not genuine but for the reason that an event may occur in future benefitting certain specified persons ,the occurrence of the event being also not definite. The reason for denying approval is far fetched and against the grain and spirit of the section which extends the benefit of exemption from tax to societies, institutions etc., engaged wholly in the activity of providing education. Undoubtedly, a contingency occurring in the future cannot change the fact situation in the present. 14. In view of the above, we set aside the order of ld. Chief CIT and direct that the assessee society be granted approval under section 10(23C)(vi) of Income Tax Act, 1961. 15. The appeal of the assessee, therefore, stands allowed. Order p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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