TMI Blog2013 (7) TMI 1225X X X X Extracts X X X X X X X X Extracts X X X X ..... education to boys and girls by charging a very nominal fees. Fee is being charged to meet out the running cost and surplus is being used for developing necessary infrastructure to promote education. It has further been claimed that the institution is providing fee concession to poor, handicapped and disabled students while no fee is being charged from SC and ST students. The petitioner society is registered with the IT Department having PAN AABTN2289D. It made an application in prescribed form for approval under s. 10(23C)(vi) of the IT Act for asst. yr. 2009-10 onwards. The said application has been rejected by impugned order dt. 31st Aug., 2010 passed by the Chief CIT, Ghaziabad on following grounds: (A) The approval under s. 10(23C)(vi) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it is not necessary that the 'person' which in the instant case is the society, should be having income only from one or other source stipulated under various clauses of s. 10 and from no other source. 5. He further submitted that r. 2CA of the IT Rules, 1962 which provides for application for approval being made in Form 56D by educational institution is procedural one and cannot restrict or whittle down the scope and ambit of the statutory provision, i.e., s. 10 which is applicable to a 'person' as defined under s. 2(31) of the Act. Alternatively, he submits that it has been the specific case of petitioner society that it is engaged only in running the education institutions and is not perusing any other object mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er society was maintainable or not and if the view taken by the prescribed authority that such application should have been filed by the educational institution itself, is legally sustainable. Before insertion of s. 10(23C)(vi), such cases were covered by s. 10(22) which was to the following effect: 10(22) any income of an university or other educational institution, existing solely for educational purposes and not for purposes of profit. The aforesaid provision was amended by Finance (No. 2) Act, 1998, w.e.f. 1st April, 1999 and in its place s. 10(23C)(vi) has been inserted which is as follows: 10(23C)(vi) any university or other educational institution existing solely for educational purposes and not for purposes of profit, other than tho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of earning any profit and the assessee itself could be termed as an 'educational institution' coming within s. 10(22) of the Act. The High Court has concurred with this view. The High Court has further held that the medium through which the assessee could effectuate its objects is the college and by employing this medium, the assessee imparts education and it cannot be stated that the assessee is only a financing body and does not, on facts, come within the scope of 'other educational institution' occurring in s. 10(22) of the Act. Reliance was placed on the decision of the Allahabad High Court in Katra Education Society vs. ITO 1977 CTR (All) 221 : (1978) 111 ITR 420 (All), to hold that an educational society could be reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed within the objective of carrying out educational activity. There is no purpose of profit. As of today, its only activity is education, namely, running of various schools and no other activity. 10. In view of the authoritative pronouncement of law by the apex Court and various High Courts, we have no hesitation in holding that the application filed by the petitioner society cannot be rejected on the ground that it is not at the instance of educational institution as referred to under s. 10(23C)(vi) of the Act and r. 2CA of the IT Rules, 1962. 11. The next question which now arises for consideration is whether an application can be rejected on the ground that the memorandum of association of the society provides for various other objects a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her activity apart from education then in such case, the society will qualify for grant of approval under s. 10(23C)(vi) of the Act. It was observed as under: In the facts and circumstances, we are of the opinion that as of now the petitioner society running educational institution by the name of C.P. Vidya Niketan Inter College at Kaimganj, District Farrukhabad imparts education to students from Class VI to XII, in the absence of any allegation or material, the object clause providing for other charitable activities, would not disentitle the society from approval under s. 10(23C)(vi) of exemption. The proviso added to s. 10(23C)(vi), specially provisos 2, 3, 12 and 13, give sufficient powers to check the abuse of the exemption. The mere po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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