TaxTMI 
TaxTMI 
2011 (7) TMI 422
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...., cultures, traditions, folk arts and various schools of philosophy. (2) That the word 'education' has to be given restrictive meaning and connote process of training and developing knowledge, skilled mind or character of students by schooling/university/formal educational process (refer Sole Trustee Loka Shiskhana Trust vs. Commissioner of Income Tax, (1975) 101 ITR 234 (SC). (3) Under the Income Tax Rules 1962, approval under Section 10(23C)(vi) of the Act is not a one time approval but has to be taken periodically. Therefore, earlier approvals granted under Section 10(23) or 10(23C)(vi) of the Act are inconsequential. 2. The petitioner is a society which was registered on 31st October, 1974 under the Societies Registration Act, 1860. In 1976, it established Delhi Jain Public School, which has been recognized by Directorate of Education, Govt. of NCT of Delhi and Central Board for Secondary Education, as an unaided recognized minority school. In the same year, the petitioner also established Delhi Jain Nursery School for pre-primary education. In 1997, the petitioner established another Sr. Secondary School viz. Jinvani Bharti Public School which is ....
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....ect of insertion of the provisos to section 10(23C)(vi) vide ht Finance (No.2) Act, 1998. Section 10(23C)(vi) is analogous to section 10(22). To that extent, the judgments of this court as applicable to section 10(22) would equally apply to section 10(23C)(vi). The problem arises with the insertion of the provisos to section 10(23C)(vi). With the insertion of the provisos to section 10(23C)(vi) the applicant who seeks approval has not only to show that it is an institution existing solely for educational purposes (which was also the requirement under section 10(22)) but it has now to obtain initial approval from the prescribed authority, in terms of section 10(23C)(vi) by making an application in the standardized form as mentioned in the first proviso to that section. That condition of obtaining approval from the prescribed authority came to be inserted because section 10(22) was abused by some educational institutions/universities. This proviso was inserted along with other provisos because there was no monitoring mechanism to check abuse of the exemption provision. With the insertion of the first proviso, the prescribed authority is required to vet the application." 6. In the ....
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....ere the appellant institute was given exemption upto the financial year ending March 31, 1998 (assessment year 1998-99) and where a application is made on April 7, 1999, within seven days of the new dispensation coming into force, the prescribed authority can grant approval subject to such terms and conditions as it deems fit provided they are not in conflict with the provisions of the 1961 Act (including the abovementioned monitoring conditions). While imposing stipulations subject to which approval is granted, the prescribed authority may insist on certain percentage of accounting income to be utilized/ applied for imparting education in India. While making such stipulations, the prescribed authority has to examine the activities in India which the applicant has undertaken in its constitution, memoranda of understanding and agreement with the Government of India/National Council. In this case, broadly the activities undertaken by the appellant are conducting classical education by providing course materials, designing courses, conducting exams, granting diplomas, supervising exams, all under the terms of an agreement entered into with institutions of the Government of India. Simi....
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....ours contained in the third proviso, the Supreme Court provided the solution also in the aforesaid judgment, which is this: on fulfilling the threshold conditions, approval could be granted with the stipulation that conditions mentioned in the third proviso would be carried by the applicant. The Supreme Court also was of the view that while imposing such stipulation, subject to the approval as granted, the prescribed authority may insist on certain percentage of accounting income to be utilized/applied for imparting education in India, as it was a case of a foreign educational institutions. 13. Significantly, the Supreme Court also drew distinction between those institutions applying for initial approval for the first time and the institutes who had already obtained exemption and their cases were to be examined after the introduction of third proviso. In respect of former category of cases, it was held that the prescribed authority may grant exemption on such terms and conditions as it deems fit. In respect of cases falling in the the latter category, the Supreme Court categorically observed that those cases where exemption had already been obtained need not be reopened on the g....