TaxTMI 
TaxTMI 
2022 (8) TMI 853
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....ly allowing the exemption u/s 10(23C)(vi) of the Act, and it was only due to change in name of the Appellant and resultant change in PAN, that to effectuate the corresponding changes incorporated in the aforesaid order dt 13.02.2008, the Appellant filed an Application u/s 10(23C)(vi) of the Act, to make the necessary changes in the already subsisting approval order dt 13.02.2008, and without appreciating the aforesaid facts, the CIT (Exemption), in an grossly arbitrary and illegal manner, rejected the application of the Appellant, without application of mind, which is bad in law. It is submitted that the Appellant society is a collaborative body of the Central and State Governments, formed under the administrative control of Ministry of Road Transport & Highway, Government of India with a Governing Body consisting of all ex officio senior nominees from the Government, and thus it is an extended arm of the Government, formed and running with an object to give the technical training and necessary professional grounding in the field of Highway engineering including bridges to ensure an efficient, safe, reliable and economic highway system as in integral part of nation's economy, a....
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....t admissions to professional institutions have all been regarded yield following in the word (education) is limited schools, colleges and similar institutions and does not explain to any other media for such acquisition of knowledge it was also submitted that distinction has been drawn between making of surplus and institution being carried on "for profit". 1. Patanjali Yogapeeth (Nyas) vs. ADIT (E), Range II, New Delhi (2017) 54 ITR 616 (Delhi-Trib.) 2. CIT(E) vs. Patanjali Yogpeeth (NYAS), 87 taxmann.com54 (Delhi HC) 3. Delhi Musix Society vs. DCIT, 17 taxmann.com 49 (Delhi) 4. Delhi Bureau of Text Books vs. Director of Income Tax(E)] 5. Counsel for the Indian School Certificate Examinations vs. Director General of Income Tax, 20 taxmann.com 505 (Delhi HC) 6. Oxford Academy for Carrer Development vs. Chief Commissioner of Income Tax 7. Investor Financial Education Academy vs. ITO (E) -4, Chennai , 121 taxmann.com 281 (Madras. HC) 8. ITO vs. SRM Foundation of India, 21 ITD 598 (Delhi) 9. ITO, Ward 1, New Delhi vs. Science Olympaid Foundation, 48 taxmann.com 382 (ITAT) 10. Sole Trustee, Lok Sh....
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.... in regard to the application. A perusal of this letter which is on record at page no. 87 of the paper book, shows that on a notice is on a Performa by which information or the documents are usually sought to verify the claim of any applicant. There is no specific query, in the light of contents of application of Appellant. 6.4 There after, by letter dated 16.09.2019 (at page no. 94 of the paper book) the appellant has given broadly the scope of its activities and had given specific replies to the 18 pointer questionnaire issued by the Tax Authorities in which it was specifically mentioned that IAHE was established as an autonomous body on the Ministry of Road Transport and Highways by initial corpus contribution. The land was allotted to the society in the name of President of India. Then again, on 10.09.2020 detail account/ reply was submitted by the appellant to the Tax Authorities submitting specifically that as to how the activities of institution fall into the beneficial provision of Section 10(23C)(vii) of the Act. The copy of this letter dated 10.09.2020 is on record at page no. 89 of the paper book. 7. However, it appears that all these factual aspects with regard to....
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.... an efficient, safe, reliable and economic highway system as an integral part of nation's economy. 8.3 The Ld. Tax Authority has questioned the charitable objectives of the appellant. An important aspect that is over looked by the Ld. Tax Authority is that appellant is an autonomous institution of a Ministry of Road Transport and Highway, Government of India. The initial funding was from this administrative ministry and even the land for building has been purchased in name of President of India. The Bench is of view that there cannot be a more sacrosanct purpose of an institution like the present appellant which is giving formal training to professionals like highway engineers, who otherwise would not have any training or continued learning, from ordinary academic institutions or Universities. 8.3.1 A self sustaining autonomous institution is rather expected to be generating receipts for its subsistence rather then being dependent on the Government for aid. So, merely collection of fee for training programs cannot make an autonomous institution to be commercial, as observed by the Ld. Tax Authority. 9. A reference needs to be made of the Hob'ble Apex Court judgment in ....
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....ving society. The provisions of Section 10(23C) cannot be interpreted regressively to deny exemptions. So long as the institution exists solely for educational purposes and not for profit, the test is met." 25. We approve the judgments of the Punjab and Haryana, Delhi and Bombay High Courts. Since we have set aside the judgment of the Uttarakhand High Court and since the Chief CIT's orders cancelling exemption which were set aside by the Punjab and Haryana High Court were passed almost solely upon the law declared by the Uttarakhand High Court, it is clear that these orders cannot stand. Consequently, Revenue's appeals from the Punjab and Haryana High Court's judgment dated 29.1.2010 and the Gandhi College of Pharmacy judgments following it are dismissed. We reiterate that the correct tests which have been culled out in the three Supreme Court judgments stated above, namely, Surat Art Silk Cloth, Aditanar, and American Hotel and Lodging, would all apply to determine whether an educational institution exists solely for educational purposes and not for purposes of profit. In addition, we hasten to add that the 13th proviso to Section 10(23C) is of great importanc....