TaxTMI 
TaxTMI 
TaxTMI 
2022 (8) TMI 1069
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....n facts in rejecting the application of the trust and passing the order under section 10(23C)(vi) of the Income-tax Act, 1961, without allowing the appellant-trust a reasonable opportunity of being heard. 2. The Registry has informed there is a delay of 81 days in filing of the appeal. As per the petition for condonation of delay, dated 24.8.2021, the applicant received the order dated 31.3.2021, passed by the ld. CIT (E) under section 10(23C)(vi) of the I.T. Act through email on 5.4.2021; that the limitation for filing of the appeal was expiring on 4.6.2021, but filing of the appeal has been postponed by the Tribunal, vide its order dated 30.3.2020, w.e.f. 15.3.2020 till further orders; that the Hon'ble Supreme Court, vide order dated 27.4.2021 has restored their order dated 23.3.202, directing that the period (s) of limitation, as prescribed under any general or other laws in respect of judicial or quasi-judicial proceedings, whether condonable or not, shall stand extended till further orders; that it has further been clarified that the period from 14.3.2021, till further orders, shall also stand excluded in computing the period (s) of limitation for instituting the proceed....
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....n the other hand, has placed strong reliance on the order of the ld. CIT (E). 7. Apropos the appeal per se, by virtue of the impugned order, the ld. CIT (Exemptions) rejected the assessee's request for grant of approval for exemption under section 10(23C)(vi) of the Income Tax Act, holding that the Assessee-Society/Trust, in its bylaws, contains various objects including education, whereas it was being maintained that the other objects, which are noneducational or ancillary, are not being pursued; that as such, the test to be applied is as to whether the non-educational objects are the main objects of the Institution, or they are ancillary to the dominant object of education; that the test is the genuineness of the purpose tested by the obligation created to spend money exclusively for education; that if that obligation is there, the income becomes entitled to exemption; and that as per Clause 7(b) of the assessee's Deed of Declaration dated 19.2.2008, for the furtherance of the objects of the Trust, the Trustees shall have the following powers: "............For the furtherance of the Trust, the Trustees to apply the whole or any part of the income of the trust, or the trust fun....
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....ts are also not either ancillary to or integrally connected with the sole object of providing education; and that as such the applicant-Society is not existing solely for educational purposes. 8. To begin with, section 10(23C)(vi) read with the Third Proviso thereto is reproduced as follows: "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 sub-clause (iiiab) or subclause (iiiad) and which may be approved by the prescribed authority; or ....................................................................................... ....................................................................................... Provided also that the fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or subclause (v) or sub-clause (vi) or sub-clause (via)- (a) applies its income....
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.... previous year of any University or other Educational Institution existing solely for educational purposes and not for the purposes of profit, any income of such University or other Educational Institution, shall not be included. 11. The Third Proviso to section10(23C)(vi) is applicable to the case. As per this proviso, in order to be eligible to the exclusion offered by the provisions of the section, the University or other Educational Institution needs must apply its income, or accumulate it for application, wholly and exclusively to the objects for which it is established, subject to limitations provided for in Clause (a) of the proviso and it does not invest or deposit its funds other than as provided for under clause (b) to the proviso, for any period during the previous year otherwise than in any one or more of the forms or modes specified in section 11(5). 12. The expression "existing solely for educational purposes and not for the purposes of profit", as contained in the main section 10(23C)(vi) of the I.T. Act, is the operative expression. In other words, in order to be able to avail the exclusion provided for under the section, the University or other Educational Instit....
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.... to apply or provide utility articles and services to patients, attendants and others and to provide medical relief and/ or aid to the suffering humanities. c) To give, provide and/or render food, medicine and other help and/or assistance in any shape or form to the poor deserving and needy persons. d) To give, provide and/or render monetary and/or other help and assistance for the relief of persons and animals affected by natural and other calamities such as flood, fire, famine, cyclone, earthquake, storm, accident, drought, epidemic, to give donations, subscriptions or contributions to institutions, establishments doing relief work on such occasions. i) To open, found, establish, promote, set-up, run, maintain, assist, finance, support and/or aid or help in the setting up and/or maintaining and/or running by monetary gifts or otherwise, centers, stadium, play grounds and parks for public use, sports and games" and other social welfare works and/or activities. j) To open, found, establish, promote, set-up, run, maintain, assist, finance, support and/or aid or help in the setting up and/or maintaining and/or running institutions, centers, auditoriums and the like for th....
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.... and other financial assistance or help in cash or kind to students with a view to help them in prosecuting their studies in schools, colleges, educational institutions, technical institutions, art schools, institutions teaching commercial and other arts. j) To open, found, establish, promote, set-up, run, maintain, assist, finance, support and/or aid or help in the setting up and/or maintaining and/or running institutions, centers, auditoriums and the like for the running of welfare and other services to the public and to provide meeting room for socially useful activities and functions. 16. It has been contended that the ld. CIT (E) has erred in rejecting the applicant's request for grant of approval for exemption under section 10(23C)(vi) on the specious basis that there exist, in the applicant's Deed of Declaration, objects which are not educational in nature and which are not ancillary to the educational objects of the applicant. 17. The ld. CIT (E), it is seen, has not contrverted the existence of the object principles (b), (e) to (h) and (j), as reproduced hereinabove, in para 13, as being the objects pertaining to education. The only objection of the ld. CIT (E) is that....