TMI Blog2017 (4) TMI 1409X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 and is not relevant for the purposes of exemption granted u/s 10 (23C)(vi) of the Act at all. Moreover even for the purposes of registration granted u/s 12AA for claiming exemption u/s 11 of the Act, courts have held that section 13 has no relevance and need not be considered while granting registration .It has been held that the provisions of section 13 become applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt 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 Memorandum of Association of the assessee society stated that all moveable and immoveable property of the society would remain with the Chairman, President and Secretary jointly on dissolution of the society till some regular constituted Body took charge of the Managing Committee. The ld. Chief Commissioner held that by virtue of this clause, benefit would entail to these persons who are mentioned in Section 13(3) of the Act. Further, ld. Chief Commissioner held that there is no dissolution clause on how the society s properties or funds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 Council, New Delhi for various programs and courses. Copy of the affiliation letter was also filed before the Chief CIT and also placed before us at Paper Book page No. 18. The ld. counsel for the assessee also drew our attention to the facts and submissions made before Ld.Chief CIT that the assessee society is affiliated with Baba Farid University of Health Science, Faridkot also, copy of affiliation letter of which was enclosed at Paper Book page No.18. The ld. counsel for the assessee stated that no adverse view has been taken on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spital 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 institution or any university or other educational institution or any hospital or other medical institution, as the case may be, as it thinks necessary in order to satisfy itself about the genuineness of the activities of such fund or trust or institution or any university or other educational institution or any hospital or other medical institution, as the case may be, and the prescribed authority may also make such inquiries as it deems necessary in this behalf:] 9. A bare perusal of the above proviso reveals that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivities 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 satisfied that the assessee society was formed and existed solely for educational purposes. Further, undisputedly, in the assessment order passed for the A.Y 2012-13 the Assessing Officer had categorically found and stated that the assessee society was existing solely for educational purpose and running an educational institution and was thus eligible to claim exemption under section 10(23C)(iiiad) of the Income Tax Act.Ld. Chief CIT ,we find, has not brought any fact on record pointing towards any change in the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erwise 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 the purposes of registration granted u/s 12AA for claiming exemption u/s 11 of the Act, courts have held that section 13 has no relevance and need not be considered while granting registration .It has been held that the provisions of section 13 become applicable only after registration has been granted and is relevant only for the purpose of denying exemption in certain circumstances as stated thereunder. The apex court in the case of CIT vs Dawoodi Bohara Jamat (2014)364 ITR 31 (SC)has stated so at para 42 of its ..... X X X X Extracts X X X X X X X X Extracts X X X X
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