TaxTMI 
TaxTMI 
2014 (11) TMI 411
X X X X Extracts X X X X
X X X X Extracts X X X X
....els, choultries, rest homes, orphanages, poor homes for the benefit of poor an destitute; c) affording relief to the poor in distress and poverty and establishment and maintenance of educational institutions and workshops for imparting general, technical, professional, industrial and other means of education and training ensuring to the benefits of the general public; d) making of grants by way of scholarships, financial assistance for the benefit of students, scholars and others; e) establishment, maintenance and conduct of hospitals, clinics, dispensary for treatment, cure, rest and other relief, free of cost or at concessional rates to the general public; f) generally to help poor and needy in all respects." 3. The petitioner is said to have established a polytechnic college at Mettupalayam, during the academic year 2010-11, and the said institution is approved by the AICTE and recognized by the Government of Tamil Nadu. The petitioner had earlier established an Industrial Training Institute in 1991, which has been recognized by the Government of India. The petitioner / Trust is registered as a Public Charitable Trust, under Section 12A(a) of the Act, by the order of the Co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....here is no other activity done by the Trust, except running two educational institutions, and if opportunity had been granted to the petitioner to substantiate its claim, without solely being guided by the objects set-out in the Trust Deed, the petitioner would have demonstrated before the first respondent that it is entitled for renewal of its registration under Section 10 (23C) (vi) of the Act. The learned counsel placed reliance on the decisions, namely, 184 ITR 284 Patna (Commissioner of Income Tax v. St. Xaviers), 329 ITR 459 Delhi (Digember Jain Society for Child Welfare v. Director General of Income Tax (Exemptions) and 213 ITR 296 Kerala (Commissioner of Income Tax v. Geetha Bhavan Trust), in support of the submission that merely because there are other objectives for the Trust, other than education, that would not dis-entitle the Trust for exemption under Section 10 (23C) (vi) of the Act. Therefore, the learned standing counsel would plead that the matter may be remanded to the respondents for fresh consideration giving opportunity to the petitioner to place materials in support of its contentions. 6. The learned Senior Standing counsel appearing for the respondents conte....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fy the impugned proceedings. 8. I have considered the submissions made by the learned counsel for both sides and carefully perused the materials available on record. 9. Section 10 of the Act falls in Chapter-III, which deals with incomes not included in total income. Section 10 of the Act contains numerous clauses, amended from time to time, exempting various kinds of income from inclusion for the purposes of tax and these exemptions stem from social, economic, political, international and other considerations. It is settled legal principle that, just as a taxing provision has to be construed strictly, provision for exemption is also to be construed strictly and if exemption is in terms of provisions of the Act, subject to certain conditions, those conditions must be strictly fulfilled by the assessee claiming exemption and the burden of proof lies on the assessee to prove that a particular income is wholly or partly exempt under the particular provision. It has been held in Sri Ranganatha Enterprises v. CIT, 1998 (232) ITR 568 (Karnataka) that in respect of any exemption claimed under any of the provisions in Chapter-III, the burden of proof that the income falls under the Secti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ect of the Trust, as per the income and application statement furnished along with the application. 12. It is no doubt true that the petitioner was afforded an opportunity of personal hearing by the first respondent and the petitioner was represented by its counsel. On a perusal of the note file produced by the learned Senior Standing Counsel appearing on behalf of the respondents, it is seen that a report was called for from the Director of Income-Tax (Exemptions), and the said authority, by a communication, dated 08.07.2010, addressed to the first respondent, has forwarded the report of the Assessing Officer, DDIT (E-IV), dated 20.10.2009, duly endorsed by JDIT (E) vide endorsement, dated 22.10.2009, along with a report of the DIT (E) dated 08.07.2010. Based on the observations made in the report, the DIT (E) stated that the petitioner's case is not recommended for approval under Section 10 (23C) (vi) of the Act. Admittedly, the said report was not made known to the petitioner nor a copy of the same furnished to the petitioner at the time of personal hearing, which was held on 05.08.2010 as by then, the report was available on the file of the first respondent. In fact, the i....