TMI Blog2018 (10) TMI 1039X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Officer that the object of the society was educational and it was existing only for educational purposes. The Tribunal has rightly held that the reason for rejection by the CCIT cannot be sustained as the benefit which may or may not accrue under Section 13(3) of the Act, does not have any effect on the genuineness of the activities of the trust. The eventuality relied upon by the CCIT is based on surmises without there being any definite basis that any misutilisation would occur for sure in future. The order passed is in consonance with provisions of Section 10(23C)(vi) of the Act - decided against revenue. - I.T.A. No. 83 of 2018 - - - Dated:- 19-9-2018 - MR AJAY KUMAR MITTAL AND MR AVNEESH JHINGAN, JJ. For Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The respondent in the present appeal is a Society and set up with the objective of providing education in the field of medicine, health care, engineering and technical education alongwith primary and secondary education to the students and for providing medical services. The Society is also running a Nursing College. The respondent-society applied for grant of exemption under Section 10(23C)(vi) of the Act in the assessment year 2014- 15. The application was made on 24.09.2014. The Chief Commissioner of Income Tax, Ludhiana (for short CCIT ) issued a notice dated 09.09.2015. During the pendency, an objection was raised that in the Memorandum of Association of society, there is no dissolution clause and the only clause therein deals w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eptable. In the event of dissolution all the movable and immovable properties of the applicant shall remain with the Chairman, President and Secretary jointly till some regular constituted body takes over the charge of Managing Committee. All the property would be managed by these three persons without any check on usage of property, thus benefitting these persons. These persons are persons mentioned in Section 13(3) of the I.T. Act. No clause is available as to how new Managing Committee would be formed. Therefore in the event of dissolution of Managing Committee these three persons who are covered under Section 13(3) would benefit from the trust. Moreover, no dissolution clause on how the applicant s property/lunas would be utilized in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... second proviso thereto. 10. Incomes not included in total income - In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included- Xx xx xx xx ( 23C) any income received by any person on behalf ofxx Xx xx xx xx (vi) any university or other educational institution existing solely for educationa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As per the second proviso to Section 10(23C) of the Act, the prescribed authority before according any approval may call for the documents or information in order to satisfy itself only about the genuineness of the activities of such trust or institution etc. Thus, the scope of second proviso is limited. 15. In the case in hand, the CCIT in its order has not taken any adverse view with regard to the genuineness of the activities of the respondent-society. The objects of the society as noticed above brings it within the ambit of clause (vi) of Section 10(23C) of the Act. The society is also running a nursing college. The same is affiliated with Indian Nursing Council, New Delhi. The only basis for rejection was that in the absence of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied 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 situation since A.Y. 2012-13 so as to hold that the assessee society was not existing wholly for the purpose of education. Since the scope of the powers of the Ld. Chief CIT, for the purpose of granting approval u/s 10(23C)(vi) wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
