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TMI Blog2013 (7) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... ected to grant exemption to the assessee. It was also held that the vehicles are purchased for the benefit of the assessee society. Even the CBSE has granted recognition and approval to the assessee society to run the educational school in the same property. Exemptions under Section 10 (23c) (vi) of the Act can be claimed by the assessee without applying for registration under Section 12A of the Act, as it is not required to fulfill the conditions mentioned under Section 11 of the Act in claiming exemption under Section 10 (23c) (vi) of the Act, as explained by this Court in Commissioner of Income Tax and another vs. M/s Jeevan Deep Charitable Trust [2012 (12) TMI 818 - ALLAHABAD HIGH COURT] Decided against Revenue. - Income Tax Appeal No. -185 of 2009 - - - Dated:- 17-7-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. For the Appellant : S. C.,S. Chopra For the Respondent : A. Bansal, S. K. Garg ORDER 1. We have heard Shri Shambhu Chopra, learned counsel appearing for the department. Shri Ashish Bansal appears for the respondent-assessee. 2. This Income Tax Appeal filed under Section 260-A of the Income Tax Act arises from an order of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f profits were enjoyed by the director, family members and office bearers of the society. He also found that it was a fit case for withdrawing exemption under Section 11 or under Section 10 (23c) (vi). 7. In the appeal filed by the assessee Society the CIT (A) found that the assessee admittedly runs a school and is an educational institution to which the provisions of Section 10 (23c) (vi) are applicable. The society was granted approval under Section 10 (23c) (a) subject to certain conditions. One of the conditions was to maintain the accounts of the investment of the properties. A vague allegation was made of inflation of expenses and diversion of funds but no instance was brought on record. The allegation, that the property of Smt. Bharti Madhok has been purchased by the Society or through her, was not substantiated. The property was found to be registered in the name of Smt. Bharti Madhok, director of Sunbeam English School, which did not mean that the investment was made in the name of director in her individual capacity. The records demonstrate that the entire funds were drawn from the Society, and the assets were shown in the books of the society. In fact the property was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecember, 2000 to meet the requirements of the revenue department. The Civil Judge vide order dated 17.1.2006 accepting the plea of the society that the property is owned by the assessee society through the director Smt. Bharti madhok, ordered that with effect from 20th December, 2000 i.e. the date of the sale, the property shall be deemed to be owned by the assessee M/s Sunbeam English School. It was further submitted that the Additional CIT, Range-I under section 144-A for the assessment year 2003-04 expressed a view that there is no doubt about the ownership of the property by the society. 9. It was further submitted that wild allegations have been made about inflation of expenditure and diversion of funds for personal benefit but no evidence has been brought on record to support such an allegation. It was further submitted that it is a wild allegation that the property was purchased through Shri Madhok. It was further submitted that the vehicles are owned by the assessee society and the directions were only representing the society and that vehicles are used for the purpose of the society and in any case to avoid misunderstanding the names have since been changed. It was furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue department because only the director represents the assessee society. However, in order to avoid any controversy, the assessee moved before the civil court for direction in the matter and the Director of the assessee made statement before the Civil Court that she has no objection if necessary correction is made in the sale deed in question. The Civil Court accordingly directed to make necessary correction in the sale deed in which the assessee society was directed to represent Smt. Bharti Madhok from the date of the sale deed. The necessary endorsement was accordingly made in the sale deed in which it was noted that the assessee society was represented by Smt. Bharti Madhok. Therefore, the objection of the revenue would not survive at all. It is not a case of diversion of funds for purchasing the property for the benefit of the director. It is not in dispute that the land and building is used for the purpose of the assessee society for educational purposes. In the assessment year 2003-04 the Additional Commissioner of Income tax issued directions to the Assessing Officer on the same set of facts and directed to grant exemption to the assessee. It was also held that the vehicles ..... X X X X Extracts X X X X X X X X Extracts X X X X
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