2022 (5) TMI 1152

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.... Ld. learned CIT(Exemptions) has erred in law as well as on fact in rejecting approval u/s. 10(23C)(iv) of the Act on facts and circumstances of the case." 3. The brief facts of the case are that the assessee is a charitable trust registered with Assistant Charity Commissioner, Rajkot vide registration dated 01.04.1986. The trust is also registered under section 12A of the Act. The assessee trust filed an application dated 30.03.2017 and sought an approval under section 10(23C)(vi) of the Act. According to assessee, the trust is carrying out educational activities through its various institutions like primary schools, secondary and higher secondary schools. However, the Commissioner of Income Tax (Exemptions), Ahmedabad observed that on pe....

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.... sub-clause (iiiad) and which may be approved by the prescribed authority" In view of the above, the assessee has other non-educational objects as per the trust deed mentioned above. Therefore, the assessee has not fulfilled the condition laid down to proviso of section 10(23C)(vi) of the Act." 4. Before us, the counsel for the assessee submitted that the assessee trust had obtained registration under section 12A of the Act on 22.08.1986. The assessee also drew our attention that it is being audited for the past 20 years and audit report has been submitted as part of the paper book. The assessee submitted that though the terms of the trust deed cover activities other than educational activities, but the assessee trust never carried out a....

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....g" solely for educational activities CIT(Exemptions) has not erred on facts and in law in denying exemption under section 10(23C)(vi) of the Act. 5. We have heard the rival contentions and perusal the material on record. In our view, though the objects clause of the trust deed mentions/contains activities other than educational activities, but as submitted by the counsel for the assessee and also supported by affidavits filed by the trustees placed before us, it is seen that the assessee has not engaged in any activity apart from educational activities. The Ld. Departmental Representative also has submitted that the genuineness of the activities of the assessee trust are not in doubt. Therefore, the issue for consideration before us is whe....

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.... In the result, the appeal of the assessee is allowed. 5.2. In the case of Allahabad Young Men's Christian Association v. CCIT (2015) 54 Taxman.com 190(Allahabad), the High Court held that may merely because there are other objects of society does not mean that educational institution is not existing solely for educational purpose. 5.3. In the case of C.P. Vidya Niketan Inter College Shikshan Society v. Union of India 40 taxman.com 76 (Allahabad) the mere possibility that society in future might pursue non-charitable activities would not constitute grounds to reject approval under section 10(23C)(vi) of the Act. 5.4. In the case of Harf Charitable Trust v. Chief Commissioner of income tax 63 taxman.com 53(Punjab and Haryana), the Hig....