TMI Blog2020 (10) TMI 883X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the State Registered Authorities and was only engaged in the educational activities. No reason to deny the exemption or registration under Section 10(23C) of the Act which was denied by the learned Chief Commissioner. Tribunal has rightly discussed the relevant provisions of the Act and finding that the Appellant Educational Institution is undoubtedly, an Institution covered by the provisions of Section 10(23C)(vi) of the Act and therefore, as an AOP, it was entitled to exemption irrespective of the fact whether it had separate registration under other law as an Institution or Society or not. The requirement of the Applicant being a registered Body or juristic person is not there in Section 10(23C) of the Income Tax Act. The definition of 'Person' who is entitled to exemption under Section 10(23C)(vi) of the Act is clear enough and it specifically covers Association of Persons (AOP), which need not be a registered Body. The submission made on behalf of the Revenue that unless the Applicant under Section 10(23C) of the Act is independently registered, the Revenue may not have control over it is fallacious, since the Appellant/Assessee is admittedly filing its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .No.91778/E- 4/1997. Under this permission the assessee was granted permission to open Matriculation School at Tharamangalam, Salem District for classes standard 1st to 7th standard during the year 1966-1967. Again by proceedings dated 21.02.2007 in M.M.No.8064/E- 5/2005, the school has been granted further permission confirming the earlier permission and granting extension of classes from 1st to 12th Standard from 01.07.2005 to 30.06.2008. Further by another certificate of Recognition dated 29.12.2014 in proceedings No.5526/A-1/2014 , the permanent recognition has been granted from L.K.G to 8th Standard for the period 01.06.2014 to 31.05.2017 and for the 9th to 12th Standard from the same period recognition granted from 01.06.2014 to 31.03.2017. It is also admitted fact that the present assessee has been filing the return of income under the status of AOP (Educational Institution) . Now the objection of the Department is that the assessee is not having independent existence with clear cut objectives. As such it cannot be considered for granting exemption u/s.10(23C)(vi) of the Act and also it was alleged that huge amount is due from Sengunther Education Board to the assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the word Institution means an established or organized Society or Corporation, an establishment, especially one of Public Character, or one effecting a community; a Foundation. Further, this Tribunal, Delhi. Bench G Bench. in l.T.A.No:3360(DEL) of 2008 dated 30.04.2010 in deciding the Appeal in the case St Thomas Girls Senior Secondary School, New Delhi Vs. Director of Income Tax(Exemption), New Delhi have held that the word Institution is wide enough to include a school which has been established for imparting Education . Merely because the Assessee School does not have power to purchase, acquire, or sell the property, does not mean that the school will cease to exist as an Institution . Thus the STATUS of the Assessee could be A.O.P. in the absence of any Memorandum of Association or Trust Deed . Considering the above decision of the l.T.A.T. Delhi Bench, in the present case also the above Matriculation School which is managed by Education Board and granted permission by the Director of School Education as early as 07.10.1997 is an Institution qualifying for exemption U/s. 10(23C)(vi) of the I.T. Act. Hence the exemption sough for the above Institution is to be g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s school vide separate memorandum, article, bye laws is not proved at all. Following ratio of the decision of Honourable Supreme Court in American Hotel Lodging Association reported in 301 ITR 86, they should fulfil threshold conditions before the grant of registration/exemption, solely means exclusively and not primarily as held in New Noble Education Society vs. CCIT reported in 334 ITR 303(AP). Conclusion: Since the assessee is not having independent existence with clear cut objectives, it cannot be considered for granting exemption. It is, further seen, that the school is totally controlled by Sengunthar Educational Board. The huge amount is due from Sengunthar Educational Board to the assessee's school. Even the school building is owned by Sengunthar Education Board to whom rent of ₹ 5000 PA is paid by the school. In view of these facts, circumstances and status, Application is hereby rejected for the application u/s 10(23C)(vi) of the I.T. Act, 1961. 6. Per contra, the learned counsel Mr.Hariprashanth representing Mr.Niranjan Rajagopalan supported the impugned order of the learned Tribunal. He submitted that there is no requiremen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or a local authority or an artificial juridical person shall be deemed to be a person, whether or not such person or body or authority or juridical person was formed or established or incorporated with the object of deriving income, profits or gains. 9. Since the AOP is recognised as a person for the purpose of Income Tax Act, 1961 and Section 10(23C) of the Act also grants exemption to a person engaged in deriving income from specified sources including the University or Educational Institution, covered by this provision and on these facts, there is no dispute before us that the appellant Educational Institution was duly registered with the State Registered Authorities and was only engaged in the educational activities. Therefore, we do not find any reason to deny the exemption or registration under Section 10(23C) of the Act which was denied by the learned Chief Commissioner. 10. In our opinion, the Tribunal has rightly discussed the relevant provisions of the Act and finding that the Appellant Educational Institution is undoubtedly, an Institution covered by the provisions of Section 10(23C)(vi) of the Act and therefore, as an AOP, it was entitled to exemption irre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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