2014 (7) TMI 1241

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....(in short, 'the Tribunal') in ITA No.781/CHD/2015, claiming the following substantial questions of law:- "(i) Whether on the facts and circumstances of the case, the order of the ITAT is not perverse in holding that the Pr.CCIT has not doubted the genuineness of activities of the assessee whereas the Pr. CCIT had denied exemption as the assessee had not satisfied the condition of Section 10(23C) that it was existing solely for educational purposes? The assessee had aims and objects other than education also. (ii) Whether on the facts and circumstances of the case, the order of the ITAT is not perverse in holding that the Pr.CCIT has not doubted the genuineness of activities of the assessee whereas the Pr. CCIT had ....

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....cational purposes and not for purposes of profit. Aggrieved by the order, the assessee filed an appeal before the Tribunal. Vide order dated 10.03.2016 (Annexure A-2), the Tribunal had directed the Pr. CCIT to grant registration to the respondent- assessee. It was observed by the Tribunal that the only reason for denial of exemption could be where the officer was not satisfied as to the genuineness of the activities of the assessee. Since the Pr. CCIT had not doubted the activities of the Society, a direction was given to him to grant registration under Section10(23C) of the Act. Hence, the instant appeal by the appellant-Revenue. 3. We have heard learned Sr. Standing Counsel for the appellant-Revenue. 4. Section 10(23)(vi) of the Act....

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....sfied as to the genuineness of the activities of the assessee. By not applying the provisions of the Right of Education Act, it cannot be said that the assessee is not doing any genuine educational activities. For non-compliance of Right to Education Act, there is a specific appropriate authority which may take action against the assessee. Otherwise also, as stated by us earlier, the RTE provisions are not applicable to the assessee being an unaided society. It is not open to the Income tax Department to take any such step. There may be some provisions in the relevant Act for the consequences of such non-compliance but it can certainly not be in the form of not granting approval to the assessee under the Income Tax Act. Since the P....