Tribunal directs approval under Income Tax Act despite non-compliance with Right to Education Act.

The Tribunal allowed the appeal, directing approval of registration under section 10(23C) of the Income Tax Act. It emphasized that denial based on non-compliance with the Right to Education Act was not justified, as the Income Tax Act focuses on the genuineness of activities. The Tribunal stressed that compliance with other statutes should not be a ground for denial under the Income Tax Act, highlighting the importance of adherence to specific provisions for approvals under section 10(23C)(vi).

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Issues:
- Denial of approval under section 10(23C)(vi) of the Income Tax Act, 1961 based on non-compliance with provisions of the Right to Education Act, 2009.

Analysis:
1. The appeal challenged the rejection of the application for approval under section 10(23C)(vi) of the Income Tax Act, 1961, due to non-compliance with the Right to Education Act, 2009. The assessee, a society running an educational institution, argued that denial was unjust and arbitrary, emphasizing its registration under section 12AA and charitable activities.

2. The Tribunal examined the provisions of section 10(23C)(vi) and the requirement for approval by the prescribed authority. The second proviso emphasized the authority's need to ensure the genuineness of the activities. The Tribunal noted that non-compliance with other Acts should not be a ground for denial under the Income Tax Act, citing a Delhi ITAT case.

3. The Tribunal highlighted that the Income Tax Act is self-contained, and denial of approval should be solely based on the genuineness of activities. Non-compliance with the Right to Education Act does not automatically invalidate educational activities. The Tribunal referenced a case to support the view that personal beliefs should not influence decisions under the Income Tax Act.

4. As the Principal Chief Commissioner did not question the genuineness of the society's activities, the Tribunal directed the approval of registration under section 10(23C) of the Act. The appeal was allowed, emphasizing that denial based on non-compliance with the Right to Education Act was not justified under the Income Tax Act.

5. The Tribunal's decision highlighted the importance of adherence to the specific provisions of the Income Tax Act in granting approvals under section 10(23C)(vi), emphasizing the need for the prescribed authority to focus on the genuineness of the activities rather than non-compliance with other statutes.

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