TMI Blog2019 (11) TMI 1099X X X X Extracts X X X X X X X X Extracts X X X X ..... tion u/s 12AA of the Act. Set aside the issue of approval u/s 10(23C)(vi) to CIT (Exemption) for afresh examination after giving reasonable opportunity of being heard to the assessee as per the terms indicated above. Appeal of the assessee is allowed for statistical purpose. - ITA No.866/Ind/2018 - - - Dated:- 21-11-2019 - Hon ble Kul Bharat, Judicial Member And Hon ble Manish Borad, Accountant Member For the Assessee : Shri Manjit Sachdeva, CA For the Revenue : Shri K.G. Goel, Sr. DR ORDER PER MANISH BORAD, AM The above captioned appeal filed at the instance of the assessee is directed against the orders of Ld. Commissioner of Income Tax (Exemption) (in short Ld.CIT(A) ], Bhopal dated 28.9.2018. 2. Assessee has raised following grounds of appeals; 1.The learned Commissioner of Income Tax (Exemption) erred in rejecting the application made for approval under section 10(23C)(vi) of the Income Tax Act. 2.The learned Commissioner of Income Tax (Exemption) rejected the application for approval under section 10(23C)(vi) just ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... institution existing solely for educational purposes and not for purpose of profit is entitled for approval u/s 10(23C)(vi),. The above facts. Have been brought to the knowledge of the AR. It is seen that the assessee has applied before the Registrar of Firms Societies to amend the objects. It is also noticed that the Society is registered u/s 12AA vide order dated 30.1.2017. Since registration u/s 12AA is already granted to the Society he has been asked to for seeking approval u/s 10(23C)(vi) of the I T Act by 21.8.2018 . 5. Thereafter on 21.08.2018 assessee sought adjournment to file more information but since the case was getting time barred by limitation on 31.03.2018 Ld. CIT (Exemption) passed order dated 29.8.2018 rejecting the application u/s 10(23C)(vi) of the Act. 6. Aggrieved assessee is now in appeal before the Tribunal. 7. Ld. Counsel for the assessee submitted as follows :- (1) Reasonable opportunity was not granted to furnish various details and information called for by Ld. CIT (Exemption). (2) Ld. CIT (Exemption) has not considered the Circular No.14 of 2015 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecessary, incidental or conducive to the attainment of the above objects. 11. We have also observed that the assessee society enjoys the registration u/s 12AA of the Act granted on 30.1.2017 which establishes that it is running for charitable activities. As regards application u/s 10(23C)(vi) of the Act during the course of hearing assessee society made following submission before Ld. CIT (Exemption):- Reg: Reva (Sunil) Education Society, Indore PAN AACAR4988D Sub.: Your notice no. ITBA/EXMF/EXM17/2018-191/1010275227(1) Sir, With reference to the above, we hereby submit the following information and Particulars as required in seriatim as under: _ 1. That Books of accounts with supporting vouchers are Produced herewith. 2. That regarding sources of funds, it is submitted that the assessee did not received any corpus fund and /or other fund during the financial year 2016- 2017. With regard to creditors and liabilities, it is submitted that it consist of advance fees received of ₹ 10200/-, which is fees received from the students of the school runne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proprietor or partner or director or having substantial interest is enclosed herewith. And the assessee has not entered any transactions with such concerns. 10. That the assessee has not received any donations during the period 2015- 16 to 2016-17 and therefore not applicable. That the fees structure of the school operated by the assessee is enclosed herewith. 11. That the details of the student giving name of the student, father's name, address with summary giving number of student's class wise is enclosed herewith, And there was no student under RTE at that time. 12. That in respect of Lease rent paid of ₹ 480000/- per month of the property situated at Revenue Area, Anjad dist. Barwani taken on lease rent, it is submitted that the school is situated in Anjad Dist. Barwani which is one of the posh areas of the Barwani District and lease rent paid is in accordance as per the market rate of the area. The size of the property taken on rent is 3.50 Acres. The payment of the lease rent is made through the banking channel and tds is made by the assessee on - ~ lease rent paid. The lease rent income is shown by the ow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration u/s 12AA a mandatory pre or post condition, In fact, provisions of section 11 and 10(23C) are two parallel regimes and operate independently in their respective realms although the compliance criteria may be common to both. Hence obtaining prior registration before granting approval u/s 10C23e) cannot he insisted upon.. 2.2 However, in case of a trust or an institution having obtained registration u/s 12AA as well as approval u/s l0(23C)(vi), if registration is withdrawn at some point of time clue to certain adverse findings, the withdrawal of approval u/s 10(23C)(vi) shall not automatic but will depend upon whether these adverse findings also impact the conditions necessary to keep approval u/s 1O(23C)(vi) alive. 13. Hon ble jurisdictional High Court in the case of CIT V. Franciscan Clarist Society (supra) held that without considering the actual activities undertaken by the society the exemption cannot be denied merely relying on the bye-laws. 14. Examining the facts of the instant case in the light of the above judgment as well as Central Board of Direct Taxes Circular No.14 of 2015 dated 17.8.2015, we observe tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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