2017 (6) TMI 1048

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....reshi ) 1. This appeal is filed by the Revenue challenging judgement of the Income Tax Appellate Tribunal dated 07.10.2016 raising following question for our consideration: "Whether the Appellate Tribunal is justified in directing the CIT(E), Ahmedabad to grant approval u/s. 10(23C)(vi) of the Act to the assessee and ignoring the finding of the CCIT, Baroda, as the applicant Trust does....

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....section 12AA of the Income Tax Act,1961 since 25.08.1998. It had also been granted exemption under section 80G of the Act. 4. Despite such facts, the Commissioner, on the premise that clause (c) of the objects noted above stated to be for the education purpose, held that the Trust does not fulfill the condition of section 10 (23C)(vi) of the Act. He was of the opinion that the Trust was not exi....

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....nd purpose of its existence. While rejecting the application of the Trust under section 10(23C), the ld. CCIT has not pointed out any specific aspect. He only harboured a belief that assessee might have some ancillary activities not associated with education. This is only a hypothetical observation. In all these decisions, it has been propounded that if the assessee has not taken other objections ....

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....d not for purposes of profit is to be strictly complied, in the present case, the trust deed provided sufficient safeguard in this regard. Clause (a) of the trust deed envisaged the object of the Trust to spread amongst people of Dharmaj education and to employ suitable means for the spread of intellectual, physical and moral education. Clause (b) pertains to collection of funds, to accept trust f....