2019 (1) TMI 1005

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....1961 by the Ld. CIT (E) Chandigarh is against law and facts on the file in as much as he was not justified to hold that the applicant school does not qualify for exemption u/s 10(23C) of the Act. 3. The facts of the case in brief are that the assessee filed an application in Form No. 56D for grant of exemption / approval u/s 10(23C)(vi) of the Income Tax Act, 1961 (for short 'I.T. Act'). The Ld. CIT (E) observed that the assessee is a school of "Sanatam Dharma Paracharak Sabha" a society registered in the office of Registrar of Joint Stock Companies under Societies Registration Act on 5.2.1914. There was no evidence of the assessee claiming exemption u/s 10(23C) (iiiad) of the Act in the past. He also observed that the assessee had....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mitted that the exemption u/s 10(23C) (vi) of the Act is allowable to a University or Educational Institution and not to any other assessee i.e. Trust or Society. It was further stated that the assessee trust is running educational institution in the name of 'Ram Lal Bhasin Public School' and in its Income-tax returns earlier was used to claim exemption u/s 10(23C)(iiiad) of the Act till the Assessment Year 2015-16 and for the year under consideration the assessee school filed an application for exemption in Form No. 56D in accordance with Rule 2CA(2) of the Income Tax Rules and no PAN is required for claiming the exemption u/s 10(23C)(iv) of the Act. The reliance was placed on the judgement of the Hon'ble Karnataka High Court in the ca....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hat the assessee is a school which is affiliated to the 'Council for the India School Certificate of Examination' (ISCE), copy of which is placed on the record. It is also not the case of the Department that the assessee school was existing for the purpose of the profit. On a similar issue, the Hon'ble Karnataka High Court in 'CIT and Another Vs Children Education Society' (2013) 358 ITR 373 has held as under:- "Clause (22) of section 10 was deleted with effect from April 1, 1999. The provisions are now substituted under (23C) of section 10. By the amended provisions what is intended to be done is that where any university or other educational institution existing solely for education purpose and not for purposes of profit, it wholly ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he hands of the assessee and it is such income which is sought to be excluded while computing the total income of the assessee under section 10. The test prescribed under the provision is not the income of the educational education. It is the aggregate annual receipts of such educational institution that is prescribed at Rs. 1 crore. Therefore, the expression "aggregate annual receipts" has to be understood in the context in which it is used and the purpose for which the provision was inserted, keeping in mind, the scheme of the Act. Therefore, in the case of an assessee running several educational institutions, if any of them is wholly or substantially financed by the Government, then the income from such educational institution received....