TaxTMI 
TaxTMI 
2018 (9) TMI 1013
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd against the law due to the fact that due to change of incumbent, a fresh notice was required to be issued but no such notice seems to have been issued and it is incorrect that the notice was issued on 29.09.2015 as mentioned in para 6 of the order because no such notice had been served on the appellant till today, even it was not possible to serve/comply the notice dated 29.09.2015 for hearing on 30.09.2015 and the order was passed ex- parte stating that none appeared on the given date. 2. That Ld. Prescribed Authority was not justified by rejecting the approval of claim of exemption u/s 10(23C)(vi) of the Income Tax Act 1961 on the ground that no agreement has been signed with Sant Baba Hazura Singh owner of Land as to what would happen to building in case the land is taken back by Sant Baba Hazura Singh and how the investment of applicant would be safe. It has also been stated that funds have been utilized for construction in the name of Sant Baba Hazura Singh.Ld. Prescribed Authority has ignored all the material facts as explained during proceedings as mentioned in para 5 of the order. 3. That Ld. Prescribed Authority was not justified by holding that funds ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd on which Building has been constructed has been given by Chairman Sant Baba Hazoora Singh and as per Rules and Regulations of the Society para (ii) and (iii) is binding on Chairman for success of Society. Society and he not supposed to take back the Land when he has to make all arrangements for success. 4. That para 8 of the order has also been misinterpreted. 5. That Ld. CIT (Exemptions) was also not justified by ignoring the Circular No. 14/2015. 6. That the Appellant craves right to amend or alter any of the ground before or at the time of final hearing of Appeal. That it is therefore prayed that on facts and circumstances submitted above, approval u/s 10(23C)(vi) may kindly be granted and kindly be accepted." 4. We shall first take up the ITA No.624(Asr)/2015 for adjudication . The brief facts of the case are that an application in Form No.56D, requesting for grant of exemption u/s 10(23C)(vi) of the I.T. Act, 1961 was filed on 25.09.2014 by the appellant before the ld. CIT(E), which came up for consideration before the CCIT, Ludhiana, who vide letter No.2520 dated 08.09.2015 asked to submit the relevant documents and reply to the qu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n Village Sukhanand, and I had voluntarily given for running the Educational Institutes namely Sant Baba Bhag Singh Memorial Girls College, Sant Baba Bhag Singh Memorial Girls College of Education, Sant Baba Bhag Singh Memorial Girls Sr. Sec. School and Sant Baba Bhag Singh Memorial Public School all situated in Village Sukhanand District Moga without any lease agreement or Theka as the said land was given by donation 'HIBA NAMA}' by some land owners of Village Sukhanand. I undertake that the same shall not be taken back. Being life time Chairman of the Educational Society under the control of which all the above educational institutions are being run and I am bound to see that these are functioning successfully and I am also bound to see that no loss may happen in there functioning. The said land was donated by the villagers to run the educational institutions for girls as there was no college in the surrounding areas up to 40 Kilometers. I also undertake that I shall not charge any lease money or theka in future also. This undertaking shall be binding on GADI owners of Dera Bhore Wala Sukhanand who so ever may succeed me in future. Written and submitted ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....by the appellant and even otherwise the order has been passed on 30th Sep., 2015 and there is a gap of only one day is issuing the notice and fixing the date of hearing which clearly reflects violation of the rule of audi-alteram-partem. Right of being heard is the fundamental right of every litigation which includes the appellant herein , therefore, not providing sufficient opportunities on change of incumbent and deciding the case ex-parte on very next date of issuing a notice, clearly reflects that rule of natural justice has not been followed which entail the order invalid. 10. Hence, we feel it appropriate to remand back the instant case to the file of the ld. CIT(E), to decide afresh the application of the appellant filed under section u/s 10(23C)(vi), while taking into consideration, the observation and analyzation made above in this order, however, within three months from the date of this order, by affording reasonable opportunities of being heard to the appellant. 11. In the result, the appeal filed by the assessee is allowed for statistical purposes. 12. ITA No.718 (Asr)/2018 The brief facts of the case are that the appellant had made an application u/s 10(23....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., we do not find any force in the aforesaid reasoning. However, observation of the ld CIT(E) to the effects " the land on which the building of the college is situated belongs to Sant Baba Hazura Singh, No agreement has been signed with Sant Baba Hazura Singh as to what would happen to building in case the land is taken back by Sant Baba Hazura Singh, It has not been explained how the investment of applicant would be safe" , has already dealt by us in ITA no. ITA No.624(Asr)/2015 in Para no. 4 to 6 and conclusion of the same shall mutatis mutandis apply to the instant case. 16. Second reason for rejection is that charging of fee is in large quantity under several heads is clear pointers that the activities are geared towards maximizing profits. It was submitted by the ld. Counsel of the appellant that it is evident from the audit accounts that the educational institutions is being run solely for the educational purposes and out of gross receipt of Rs. 281,79,040/-, maximum amount i.e. 91.74% have been applied for educational purposes and appellant is charging fees as per guidelines of the Punjab University. Our attention was also drawn by the ld. AR to the Annexures - A1, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tain their character as such and would be eligible to apply for exemption under Section 10(23C)(vi) of the Act". 18. On the aforesaid reasons and factual analyzation, we are of the considered view that the reasoning given by the ld. CIT(E) for rejection of the application u/s 10(23C)(vi) of the Act cannot be held as logical reasoning and therefore, considering the case of the appellant independently, the nature of its activities, 91.74 % of the gross receipts have been applied for educational purposes and fees are being charged according to the parameters of the Punjab University, therefore, we feel it appropriate to remand the case to the file of the ld. CIT(E) to decide afresh application of the Asseeee/ Appellant filed u/s 10(23C)(vi) of the Act, while taking into consideration, the observations and analyzations made above in this order, however, within three months from the date of this order, by affording reasonable opportunities of being heard to the appellant. 19. In the result, the appeal filed by the assessee is allowed for statistical purposes. ITA No.719(Asr)/2017 for A.Y. 2016-17 In the instant appeal, first ground of rejection of the application is that the....