TaxTMI 
TaxTMI 
2024 (3) TMI 482
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....e Writ Petition may kindly be allowed and by an appropriate, order or direction:- (i) the impugned Order dated 26/11/2023 (Annexure 13) passed by Respondent No.1, Chief Commissioner of Income Tax, Jodhpur may be quashed and set-aside. (ii) respondent may be directed to issue Registration Certificate to the Petitioner Trust. (iii) Any other order or direction which this Hon'ble Court deems just and proper may kindly be passed." 2. The petitioner is a Charitable Trust, registered with the Sub- Registrar, Hanumangarh on 28.11.2023 and with Devasthan Department, Bikaner on 22.12.2009. The petitioner is also registered as a Society under Section 12(A) of the Income Tax Act, 1961 (hereinafter referred to as 'Act of 1961'). Owing to suc....
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....ed order dated 26.11.2013 rejected the petitioner's application for granting the exemption under Section 10 (23C) (vi) of the Act of 1961. 3. Learned counsel for the petitioner submitted that the petitioner is engaged solely in the educational purposes, and therefore, the petitioner falls under Section 10 (23C) (vi) of the Act of 1961. 3.1. It was further submitted that the respondents issued various query letters to the petitioner and the petitioner acted upon each and every such letter and provided the requisite information, to the satisfaction of the respondents, to the effect that the petitioner is engaged exclusively in imparting of education and no other purpose is being carried out by the petitioner, and therefore, the impugned ord....
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....ndents, while opposing the aforesaid submissions made on behalf on the petitioner, submitted that the petitioner does not fall under Section 10 (23C) (vi) of the Act of 1961 for the purposes of exemption, because the surplus being generated is not incidental to educational purposes. 4.1. It was further submitted that the petitioner is being run on commercial lines, as it is evident by the expenditure incurred on the advertisement by the petitioner during the financial year 2008-09, amounting to Rs. 41,074/-; an institution, like a coaching center or a private school, which is being run with the business/profitable purposes does not come under the exemption category. 4.2. It was also submitted that for grant of exemption under Section 10 (....
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....In furtherance, the respondent, while passing the impugned order, relied upon the judgment rendered by the Hon'ble High Court of Uttarakhand in case of CIT Vs Queen's Educational Society (Uttarakhand) 177 Taxmann 321. This Court also observes that the said judgment was challenged before the Hon'ble Apex Court in case of Queen's Educational Society Vs Commissioner of Income Tax (2015) SCC 47, and the same was overruled vide judgment dated 16.03.2015 passed by the Hon'ble Apex Court. Relevant portion of the said judgment dated 16.03.2015 is reproduced as hereunder:- "19. It is clear, therefore, that the Uttarakhand High Court has erred by quoting a non existent passage from an applicable judgment, namely, Aditanar and quoting a portion of ....
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....h is to be utilised as a hospital. This income, therefore, is entitled to an exemption Under Section 11(1). In addition, Under Section 11(1)(a), the Assessee can accumulate 25% of its total income pertaining to the relevant assessment year and claim exemption in respect thereof. Section 11(1)(a) does not require investment of this limited accumulation in government securities. The balance income of Rs. 1,64,210.03 constitutes less than 25% of the income for Assessment Year 1970-71. Therefore, the Assessee is entitled to accumulate this income and claim exemption from income tax Under Section 11(1)(a). We set aside the judgment of the Uttarakhand High Court dated 24th September, 2007. The reasoning of the ITAT (set aside by the High Court....
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....stablished". Hence, it is clarified that mere generation of surplus by education institution from year to year cannot be a basis for rejection of application u/s 10(23C)(vi) if it is used for education purposes unless the accumulation is contrary to the manner prescribed under law." 9. This Court also observes that the petitioner is claiming that it is being run as a Trust solely for educational purposes, and thus, seeking the exemption under Section 10 (23C) (vi) of the Act of 1961, and the generation of surplus from year to year cannot be bar in seeking such exemption under the said provision of law. This Court further observes that after the judgment rendered by the Hon'ble Apex Court in case of Queen's Educational Society (Supra) and ....