9911796707
TMI Blog2019 (11) TMI 1099X X X X Extracts X X X X X X X X Extracts X X X X ..... filed for approval under section 10(23C)(vi) of the Income Tax Act. 4. The rejection of application is unlawful and needs to be deleted. 5.The appellant craves leave to add, alter and for delete any of the grounds of appeal. 3. Brief facts of the case as culled out from the records are that the assessee is a educational society registered on 29.9.2015 and engaged in charitable activities and also running school in the name of Saket International School. The main objects of the society are as follows; (i) To provide the facilities of first class public school (ii) To work for promotion of science, education, literature or fine art (iii) To work for foundation or maintenance of libraries (iv) Tow work in the field of water conservation, rain harvesting, creating new water bodies, development of rural urban water supply system, rehabilitation of water bodies, village upliftment and development of a model village. (v) To work in the field of education and training (vi) To work in the field of environment (vii) in the field of Maila and Bal Vikas and Panchayat and Samaj kalian and ancillary work to other social welfare activities. (viii) To do all or any of the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of a model village. 8. Ld. Counsel for the assessee therefore requested that the issue raised in the appeal may be restored to Ld. CIT(Exemption) for afresh adjudication of the application of the assessee u/s 10(23C)(vi) of the Act in the light of the judgment of Hon'ble Jurisdictional High Court, the Circular issued by Central Board of Direct Taxes and other reasons mentioned herein above. 9. Per contra Ld. Departmental Representative supported the order of Ld. CIT (Exemption) but did not oppose to the request of the Ld. Counsel for the assessee for setting aside all the matters raised in this appeal to the file of Ld. CIT (Exemption). 10. We have heard rival contention and perused the records placed before us. The assessee society was registered on 29.09.2015 with the following objects; (i) To provide the facilities of first class public school (ii) To work for promotion of science, education, literature or fine art (iii) To work for foundation or maintenance of libraries (iv) Tow work in the field of water conservation, rain harvesting, creating new water bodies, development of rural urban water supply system, rehabilitation of water bodies, village upliftmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d herewith, Advance to Suppliers of Rs. 190510/- and TDS receivable of Rs. 41201/- of which details are enclosed herewith. 3.Copy of deed of the assessee society is enclosed herewith and original is produced for verification. 4. That the assessee is running school in the name Saket International School h has got permission from CBSE and M.P. Board to run classes from nursery to 9th Class. However, the assessee is running classes from nursery to Eight class as of now. And the assessee conducts sports and other related activities. The date of commencement is 01.06.2016. 5.That year wise details of deposits/loan! advances given during the year 2015-16 to 2016-17 is enclosed herewith. That no loan has been given by the assessee and also no interest has been charged by the assessee. Details and copies of ledger account are enclosed herewith. 6. That consolidated chart of profitability in the format as required and details are enclosed herewith. 7. That there is fixed deposit held with the bank by the assessee and Details chart are enclosed herewith. 8. (a) and (b). That the assessee has not entered for the F.Y. 2015-16 to 2016- 17 with members/office bearers/founder members ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order dated 29.08.2018 gave a finding that since the assessee is already granted registration u/s 12AA of the Act what is the justification for seeking the approval u/s 10(23C)(vi) of the Act. This finding of Ld. CIT (Exemption) shows that in his view there was no need to submit application u/s 10(23C)(vi) of the Act when the assessee already have registration u/s 12AA of the Act. Whether this view of the Ld. CIT (Exemption) is in accordance with law correct needs to be addressed. We observe that Central Board of Direct Taxes vide Circular No.14 of 2015 dated 17.8.2015 with the subject of "clarification on certain issues related to grant of approval in case of Section 10(23C(vi) of the Act" clarified on the issue about the necessity for registration u/s 12AA while seeking approval/claiming exemption u/s 10(23C)(vi) of the Act (which is the exact case of the assessee). The relevant portion of the circular dealing with this issue is reproduced below:- 2. Necessity for registration u/s 12AA while seeking approval/claiming exemption u/s 10(23C)(vi) 2.1 Section 10(23C)(vi) does not prescribe any stipulation which makes registration u/s 12AA a mandatory pre or post condition, In ..... 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