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TMI Blog2013 (11) TMI 1060X X X X Extracts X X X X X X X X Extracts X X X X ..... turns for the earlier years have been duly accepted by the Assessing Officer without any objection or observation that the maintenance of accounts was defective and separate books were not maintained for the “incidental business” – The issue was restored for fresh decision. - W. P. (C) 10881/2009, W.P.(C) 1735/2012 - - - Dated:- 12-11-2013 - Sanjiv Khanna And Sanjeev Sachdeva,JJ. For the Petitioner : Mr. Ajay Vohra, Ms. Kavita Jha and Mr. Vaibhav Kulkarni, Advocates For the Respondent : Mr. Rohit Madan, Sr. Standing Counsel with Mr. Ruchir Bhatia, Advocate JUDGMENT Sanjiv Khanna, J. (Oral) This common judgment will dispose of the aforesaid two connected writ petitions filed by All India Management Association impugning order dated 29th July, 2009 relating to assessment years 2005-06 to 2007-08 and order dated 28th February, 2012 relating to assessment year 2008-09 and onwards. These orders have been passed by the Director General of Income Tax (Exemptions) in exercise of powers under Section 10(23C)(vi) of the Income Tax Act, 1961 (Act, for short). In brief, in the impugned orders it has been held that the activities undertaken by the petitioner do not fall in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) applied its income in accordance with the provisions contained in clause (a) of the third proviso; or (B) invested or deposited its funds in accordance with the provisons contained in clause (b) of the third proviso; or (ii) the activities of such fund or institution or trust or any university or other educational institution or any hospital or other medical institution- (A) are not genuine; or (B) are not being carried out in accordance with all or any of the conditions subject to which it was notified or approved, it may, at any time after giving a reasonable opportunity or showing cause against the proposed action to the concerned fund or institution or trust or any university or other educational institution or any hospital or other medical institution, rescind the notification or, by order, withdraw the approval, as the case may be, and for a copy of the order rescinding the notification or withdrawing the approval to such fund or institution or trust or any university or other education institution or any hospital or other medical institution and to the Assessing Officer. 3. The Director General, therefore, before cancelling a registration already granted has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein it has been held that the Board in question was created to control secondary education, prescribe courses of study and award certificates to the successful candidates. It was also conducting examinations, etc. The High Court held that the Board was an educational institution and rejected the contention that the fee, etc. constitutes and should be regarded as activities for purpose of profit. Reference was also made to Assam State Text Book Production and Publication Corporation Ltd. v. CIT, (2009) 319 ITR 317 (SC) wherein decision in Secondary Board of Education (supra) was referred to and the Supreme Court approved the principle and ratio enunciated therein. It was held that the said corporation was engaged in educational purposes and, therefore, as an educational institution was entitled to exemption under Section 10 (22) of the Act. Both in the case of Secondary Board of Education and Assam State Text Book Production and Publication Corporation Ltd.B (supra), the two institutions were not engaged in directly imparting education to students or conducting teaching classes. 7. Similarly, Madhya Pradesh High Court in CIT Vs. M.P. Rajya Pathya Pustak Nigam, (2009) 226 CTR (MP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and circulate data, statistics, information etc., relating to or connected with any discipline of management; x x x x x x x x x x xxiv) To make available the benefits of its activities to the public at large without restricting the same only to the members of the AIMA; and xxv) The society shall be a non-profit making organisation and its income shall be utilised for promotion of its aims and objectives. 9. Thus, the petitioner carries on varied and different activities and as a part of the activities also conducts aptitude, screening and selection tests. These tests cannot and should not be considered or be cynosure in isolation, but as a part of their overall activities. This apart, the Revenue has not stated that the petitioner s Articles of Association, activities or their actual purpose has undergone any change from the date of setting up in 1960. The petitioner has continued to carry on the same activities through the passage of time. One of the activities undertaken by the petitioner was/is to conduct examinations and several candidates participate in the said examinations. Results secured help the colleges select students for further studies. Course material, sy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether the assessee is maintaining separate books of accounts or not is a matter of fact. The assessee was asked to produce the books of accounts, which were produced as per details mentioned in order sheet entries dated 20.01.2012 and 08.02.2012 for the AY 2008-09 and 2009-10 respectively. 11. We have considered the said observation but the said findings are general and vague findings. They are conclusions without referring to full facts, contentions and legal position. In depth and proper verification or examination is required to be made before it is held or observed that the activities of the petitioner were not genuinely charitable or were not being undertaken in accordance with the provisions of Section 10(23C)(vi). This necessarily entails and requires petitioner s cooperation and furnishing of full details. General observations should not and cannot become the basis of invoking 13th proviso to Section 10(23C). While examining the said aspect, the Director General has to keep in mind the decision and ratio in ICAI Accounting Research Foundation Anr. Vs. Director General of Income Tax (Exemptions) Others, 2009 VII AD (Delhi) 586 and decision dated 19th November, 2011 in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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