2019 (5) TMI 1857

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....Section 10(23C)(vi) of the Income-tax Act, 1961 were duly fulfilled by appellant society and as such, the exemption as claimed should have been allowed. 2. That the Id. CIT (Exemptions) has erred in interpreting the provisions of Section 10(23C)(vi) of the IT Act, while holding that it is applicable only to university or other educational institutions and not to the society, that too against the 'Principles of Natural Justice'. 3. That the Id. CIT (Exemptions) did not appreciate that the appellant society is running only one school under its aegis, without any profit motive on charitable basis and there is no violation of the objects of the society, as no non-charitable activity was carried on during the year. ....

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....Form No. 56D dated 25.08.2015 before the Ld. CIT(E) requesting for grant of exemption / approval u/s 10(23C)(vi) of the Income tax Act, 1961. The assessee is a 'society' registered under Society's Registration Act XXI of 1860 on 17.05.1993 and has claimed exemption u/s 10(23C) (iiiad) of the I J. Act till Assessment year 2014-15. During the F.Y. 2014-15 the gross receipt of the society exceeded Rs. One crore and therefore the society preferred to apply for approval u/s 10(23C)(vi) of the I.T. Act. 4. The assessee was accorded opportunity by the Ld. CIT(E) vide letter dated 03.08.2016 to answer the various queries. After affording due opportunity and examination of the details, the Ld. CIT(E) denied the grant of approval under....

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.... profit and hence rightly eligible for registration under section 10(23C)(vi) of the Income Tax Act,1961. 7. On the other hand the Ld.CIT (DR) vehemently argued quoting the provisions of the Act that section 10(23C)(vi) is clearly applicable to any "university" or "other educational institution". A society or a trust cannot claim to be either of them. Trusts/ Societies/ Section 8 companies are entitled to claim exemption after registration under 12AA. A closer examination of the other sections of 10(23C) further reveals that wherever the legislative intent was to extend benefits to trusts and societies it has been dearly mentioned therein. The provisions of section 10(23C)(v) is case in point. Further as is evident from the provisions of....