TaxTMI 
TaxTMI 
2021 (4) TMI 250
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.... admit and teach students of all community without any discrimination incase, colour, creed, poor and rich etc; to establish, run and manage senior secondary schools, secondary schools, Nursery schools, Degree Colleges, Pharmacy Colleges, College of Nursing, Physical Education College etc; Providing vocational training to the unemployed youth, women widows, adolescent girls etc. on sewing, handicraft and other vocational courses." 3. The applicant/assessee had applied for grant of approval for the purpose of claiming its income exempt, as per the provisions of section 10 (23C) (vi) of the Act, vide its application in Form No. 56D dated 04.06. 2018. The Ld.CIT(E) after taking note of the aims and objects of the applicant society proceeded to determine whether its activities were in sync with the stated objects and accordingly sought certain clarifications/documents to be provided by the assessee, which find mention at para 3 of the order. Due reply of the same was filed by the applicant/assessee as noted at para 4 of the order. That after going through the same the Ld. CIT(E) noted that in the preceding two years the aggregate receipt of the applicant/assessee had exceeded Rs. 1 ....
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.... Pinegrove International Charitable Trust summed up as under:- "The educational institutions, which are registered as a society would continue to retain their character as such and would be eligible to apply for exemption under Section 10(23C)(vi) of the Act." It is clear that the educational institution (being run at present) is not registered as a society the spirit of the ratio laid down in the case of Pinegrove International Charitable Trust. In the instant case applicant being a society prima fade does not get covered under section 10(23C)(vi) of the Act. This view is further upheld by Hon'ble ITAT Chandigarh "B" Bench in the case of M/s Prakash Education Society Vs, CIT (Exemptions) Chandigarh in ITA No.1083/Chd/2016. 7. Keeping in the view of decision of the Hon'ble Punjab & Haryana High Court and also the Hon'ble ITAT Division bench "B" Chandigarh (refer para '6), it is safe to conclude that the applicant being society is not entitled for approval u/s 10(23C)(vi). Further inadmissible claims for exemption in past also impinge on the extent and quality of surpluses being generated by the applicant society and whether the same are ge....
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....ng the matter filed by assessee." 5. Referring to the findings of the Ld. CIT(E) for arriving at the conclusion that the applicant assessee was not eligible for grant of approval u/s 10 (23C)(vi) of the Act, the Ld. Counsel for the assessee contended that they were all either irrelevant, baseless or incorrect for the purpose of grant of approval. Vis- à- vis the assessee having incorrectly claimed exemption u/s 10 (23C)(iiiad) of the Act in the preceding two years, the Ld. Counsel for the assessee contended that the incorrect claim of exemption does not impinge upon its character as an institution existing wholly for the purpose of education, which is the only criteria which the applicant assessee needs to fulfill and satisfy for the purpose of grant of approval u/s 10 (23C)(vi) of the Act. As for the applicant society not qualifying as per the decision of the Hon'ble Jurisdictional High Court in the case of Pinegrove International Charitable Trust(supra), the Ld. Counsel for the assessee contended that the same has been incorrectly applied by the Ld. CIT(E) as is evident from the reproduction of the order of the Hon'ble Jurisdictional High Court itself wherein the Hon....
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....lause (vi) or sub- clause (via) shall make an application in the prescribed form and manner to the prescribed authority for the purpose of grant of the exemption, or continuance thereof, under sub- clause (iv) or sub- clause (v) or sub- cause (vi) or sub- clause (via): Provided further that the prescribed authority, before approving any fund or trust or institution or any university or other educational institution or any hospital or other medial institution, under sub- clause (iv) or sub- clause (v) or sub- clause (vi) or sub- clause (via), may call for such documents (including (including audited annual accounts) or information from the fund or trust or institution or any university or other educational institution or any hospital or other medical institution, as the case may be, as it thinks necessary in order to satisfy itself about the genuineness of the activities of such fund or trust or institution or any university or other educational institution or any hospital or other medical institution, as the case may be, and the prescribed authority may also make such inquiries as i t deems necessary in this behalf." 8. As is evident from a bare perusal of the above, Fo....