AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (3) TMI 1310
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....n sought for by the petitioner in terms of Sec.10(23C)(vi) of the Income Tax Act. 2.According to the petitioner, it is a Society constituted in terms of the provisions of the Indian Societies Act, 1975. According to the petitioner, the objectives for which the Institute is established are: i.To provide for instruction and training in such branches of learning as it may deem fit. ii.To promote education of all types in general and technical education in particular, among the educationally, socially and economically backward communities of India in general, Muslim community in particular. iii.To provide for research and for the advancement and dissemination of knowledge. iv.To sponsor or establish institutes or bodies which satisfy t....
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....niversity or an educational institution solely for educational purposes and not for purposes of profit. The petitioner filed an application in Form-56D seeking approval for exemption under Section 10 (23C)(vi) of the Act for the assessment year 2014-15 on 30.09.2014. The said application was rejected by the order dated 30.09.2014 on the ground that the petitioner Society did not exist solely for educational purpose and in fact had multiple objectives and therefore, the Society does not qualify under Section 10 (23C)(vi) of the Act in question. According to the petitioner, the respondent came to the said conclusion on the basis of existence of the 4th objective in the original memorandum that has been deleted and it has never been acted upon....
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....refore, the appellant has not applied its income for the purpose of education in India. In paragraph-31 of the judgment, the Hon'ble Supreme Court held as follows: Therefore, the twelfth proviso is the matter of detail. The most relevant proviso for deciding this appeal is the thirteenth proviso. Under that proviso, the circumstances are given under which the prescribed authority is empowered to withdraw the approval earlier granted. Under that proviso, if the prescribed authority is satisfied that the trust, fund, university or other educational institution, etc., has not applied its income in accordance with the third proviso or if it finds that such institution, trust or fund, etc., has not invested/deposited its funds in accorda....
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....ciation, the claim made for exemption made by the petitioner cannot be granted. That apart, the learned counsel submitted that since the amendment of the said clause was made from 02.06.2014, it shall only apply for the assessment year 2015-16 and cannot be considered for the assessment year 2014-15. 7.In support of his contentions, the learned standing counsel relied upon an unreported order of this Court made in W.P.No.28289 of 2010 dated 13.12.2010 wherein this Court held as follows: The petitioner institution is governed by a Trust Deed executed on 13.12.2006. The main object of the trust deed is to establish a deemed university and for the purpose of catering higher technical, engineering, medical, dental, paramedical, business educ....
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....d also taking into consideration the judgments relied upon by the learned counsel on either side, it could be seen that in Clause-4 of the objective mentioned in the Memorandum and Articles of Association, it has been stated that the objective is to sponsor or establish institutes or bodies which satisfy the requirements of the University Grants Commission Act 1956 for being recognized as 'Deemed University' and do all such acts as are necessary to secure the recognition of such institutes or bodies as deemed university u/s 3 of the UGC Act or the statutory amendments thereof. This Clause was deleted by the petitioner on and from 02.06.2014 in their Memorandum and Articles of Association. However, the petitioner contended that though the de....
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....ty or other educational institution existing solely for educational purposes and not for purposes of profit, other than those mentioned in sub-clause (iiiab) or sub-clause (iiiad) and which may be approved by the prescribed authority; provided also that the fund or trust or institution [or any university or other educational institution or any hospital or other medical institution] referred to in sub-clause (iv) or sub-clause(v) [or sub-clause (vi) or sub-clause(via)] - (a) applies its income, or accumulates it for application, wholly and exclusively to the objects for which it is established and in a case where more than fifteen per cent of its income is accumulated on or after the 1st day of April, 2002, the period of the accumulation....