TMI Blog2023 (1) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... ust. From these documents and activities, it is clearly established that assessee -trust is engaged solely in the educational activities. Therefore, we are of the view that assessee-trust deserves certificate, under section 10(23C) (vii) - Hence, we direct the Ld CIT(Exemption) to grant registration/certificate, to the assessee-trust under section 10(23C) (vii) - Appeal of the assessee is allowed. - ITA No. 539/SRT/2019 - - - Dated:- 11-1-2023 - SHRI PAWAN SINGH , JM And DR. A. L. SAINI , AM For the Assessee : Shri Sapnesh Sheth , CA For the Respondent : Shri Ashok B. Koli , CIT ( DR ) ORDER PER DR. A. L. SAINI , AM : Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2019-20, is directed against the order passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad, [in short the ld. CIT(E) ], in Appeal No. CIT(Exemption), Ahmedabad/2019-20/56D/10005, dated 27.09.2019, under section 10(23C)(vi) of the Income Tax Act, 1961 (hereinafter referred to as the Act ). 2. The grounds of appeal raised by the assessee are as follows: 1. On the facts and circumstances of the case as well as law on the subject, the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 6. Please furnish details of Revenue Expenses for F.Y. 2017-18 (excess of Rs.1 Lakhs). Purpose of expenses Mode of transaction Name address of the party Amount paid Date of payment Source of payment 1 . Please furnish details of TDS made by you during the financial year 2017-18 in the below format. Name and address the deductor TAN of deductor Nature of transaction Amount deducted Amount deposited with date Due date for deposit Default in depositing 1. Please furnish copy of Audit report for the F.Y. 2017-18 1. As per provisions of Section 10(23C)(vi) of the Act, approval is to be granted to those institutions existing solely for educational purposes and not for purposes of profit. However, from the trust deed it is seen that there are multiple objects. The trust is not formed solely for education. You are requested to explain why approval should be granted u/s 10(23C)(vi) of the Act w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. CIT(E) rejected the contention of the assessee and observed that as per the provisions of section 10(23C)(vi) of the Act of 1961, it is obligatory on the part of the authority to examine the record and object of the society objectively and therefore taking into consideration the documents on file, it was held that the objects particularly clause 2 and 4 of the Applicant Trust are contrary to the object of the educational purpose and therefore, it is concluded that the applicant does not exist solely for educational purpose. In view of the above- mentioned facts, ld CIT( E) concluded that the trust does not exist solely for educational purpose as per provisions of section 10(23)(vi) of the Act. Therefore, application of the Trust seeking approval u/s 10(23C)(vi) of the Act, was rejected by Ld CIT(E ). 10. Aggrieved by the order of the ld. CIT(E), the assessee is in appeal before us. 11. Shri Sapnesh Sheth, Learned Counsel for the assessee pleaded that assessee trust was created for the purpose of education and only purpose of the assessee trust is to provide education. However, there are some ancillary objects also such as, promotion of sports, cultural and morale prog ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... support all types of activities for building the character of students and their intellectual and physical development and make them self-reliant and hardworking. 4. the trust will undertake educational and moral activities and also become helpful to those institutions running such activities. 14. From the above objects, of the assessee-trust it is abundantly clear that assessee s sole object is to provide education to students. The other ancillary activities, like promotion of cultural, social and sports, are necessary for building the character of students, therefore these other ancillary activities are just to promote the main activity of education. Hence, after going through the object clause of the assessee trust, we note that assessee trust is solely engaged in educational activities. In order to promote good principles and ethical behavior among the students, the other activities, such as sports, social and cultural etc. are carried out by the assessee-Trust. 15. The ld Counsel submitted before the Bench the acknowledge copy of return of income along with computation of total income for assessment year 2018-19 which is placed at paper book page no.12. The audit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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