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Issues: (i) Whether the refusal to entertain the application for approval under section 10(23C)(vi) of the Income-tax Act, 1961 for the assessment years prior to 2009-10 was barred by limitation; (ii) Whether the petitioner established that it existed solely for educational purposes and not for profit so as to merit approval under section 10(23C)(vi).
Issue (i): Whether the refusal to entertain the application for approval under section 10(23C)(vi) of the Income-tax Act, 1961 for the assessment years prior to 2009-10 was barred by limitation.
Analysis: The fourteenth proviso to section 10(23C) introduced a limitation for applications made on or after 1 June 2006, and the prescribed authority had no power to condone delay beyond the statutory period. On the facts, the asserted earlier applications were not proved from the records and the belated application filed in 2008 could not cover the earlier assessment years. The application was therefore within time only for assessment year 2009-10 onwards.
Conclusion: The rejection for the earlier assessment years was valid and was not barred by any legally permissible condonation of delay.
Issue (ii): Whether the petitioner established that it existed solely for educational purposes and not for profit so as to merit approval under section 10(23C)(vi).
Analysis: Approval under section 10(23C)(vi) requires an educational institution to exist solely for educational purposes and not for profit, with the prescribed authority examining the objects, activities, and application of income. The original objects included social services and assistance to poor children on social grounds, which were not exclusively educational. The amended objects were not shown to have been certified by the Registrar so as to take effect for the relevant earlier years. The Court also found no reason to interfere when the relief would only lead to the same result on merits.
Conclusion: The petitioner did not satisfy the requirement of exclusive educational purpose, and approval was not warranted for the disputed earlier years.
Final Conclusion: The refusal to grant approval for the earlier assessment years was upheld, and the writ petition was dismissed.
Ratio Decidendi: For approval under section 10(23C)(vi), the applicant must prove both timely compliance with the statutory application period and that its objects and activities show exclusive existence for educational purposes without a profit motive.
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