TaxTMI 
TaxTMI 
2020 (8) TMI 132
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....Assessee, M/s.Kamaraj Educational Trust, has filed this Appeal aggrieved by the order dated 27.11.2015, by which, the learned Tribunal dismissed the Appeal of the Assessee and upheld the order of the learned Chief Commissioner of Income Tax dated 10.8.2015 by which, the learned Chief Commissioner of Income Tax denied exemption to the Appellant-Trust under Section 10 (23C) (vi) of the Income Tax Act, 1961. 3. The reasons assigned by the Tribunal in its order are quoted below for ready reference:- "(i) Heard both sides. Perused the order of the Chief Commissioner. On a perusal of the object clauses of the trust deed, we find that the assessee is established not only for managing all types of educational institutions but also to pr....
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.... for the current year included promotion, finance and maintenance of hospitals and charitable dispensaries, child welfare centers. Trust deed also included objects like development of human skills, sports, games. It is seen that the trust in the relevant year is not running only for educational purposes. As per income and expenditure account, the expenses of Rs. 6,00,763/- is incurred for awareness of agriculture. A sum of Rs. 55,000/- has been incurred for free medical treatment. A sum of Rs. 27,480/- is spent towards free eye camp activity. Since the trust is existing not solely for education but also for other activities, Exemption u/s 10(23C) iv is hereby denied in their application dated 29.9.2014 for a grant of exemption. Exemption u/....
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....the learned Chief Commissioner and he also submitted that the expenditure incurred in question was for maintenance of Hospitals, Charitable Dispensaries, Child Welfare Centres and Development of Human Skills, Sports, Games, etc., which were included in the 'Objects' Clause of the Memorandum of Trust of the Assessee. He further submitted that the Trust Deed was amended by the Trust itself, on 29.7.2015 to specifically emphasize that the Trust exists solely for the purpose of engaging the above services. The said Resolution dated 29.7.2015 is also quoted below for ready reference:- "The objects of the trust shall include and be restricted to the following only-To establish, promote, finance and maintain and manage all type of....
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....nder:"Incomes not included in total income 10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included-- ... .... ... (23C) any income received by any person on behalf of -- ... ... ... (vi) any university or other educational institution existing solely for educational purposes and not for purposes of profit, other than those mentioned in subclause (iiiab) or sub-clause (iiiad) and which may be approved by the prescribed authority;" 10. Having heard the learned counsel for the parties, we are of the opinion that the learned Chief Commissioner has not brought on record any evidence for holding that the expenditure i....
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....der Section 10(23C)(vi) of the Act is not enough to reject the Application under the provisions of the Act. 13. The very purpose of educational activities and charitable activities for which the said provision intends to extend the benefit of exemption and for educational activities in particular, Section 10(23C)(vi) of the Act, is likely to be defeated if such pedantic and narrow approach on the part of the revenue Authorities is allowed. 14. In these circumstances, we are not inclined to uphold the order passed by the Tribunal dated 27.11.2015 which upholds the order dated 10.8.2015 passed by the learned Chief Commissioner. Instead of answering the questions at our own end at this stage, we are inclined to remand the case back to th....