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TMI Blog2011 (11) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... and it has only to be seen whether the authorities acted within the scope of their power and a proper procedure was followed and there was no violation of the principles of natural justice. In the present case there is no dispute regarding the fact of diversion of funds to the Diocese of Jalandhar, therefore, there is no illegality and irregularity in the order of the respondent No. 3 declining to grant exemption. - - - - - Dated:- 14-11-2011 - HEMANT GUPTA and G. S. SANDHAWALIA, JJ. Pankaj Jain, for the petitioner. ORDER SANDHAWALIA, J. : The present writ petition has been filed against the order dt. 26/27th Sept., 2011 (Annex. P9) whereby the Chief CIT, Ludhiana has rejected the application of the petitioner for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and henceforth for the purpose of our objects of society we have given educational extension services to Diocese of Jalandhar. We are enclosing herewith memorandum of association alongwith confirmation of Diocese of Jalandhar. 3. The Chief CIT after taking into consideration the objects of the institution came to the conclusion that firstly the aims and objects of the assessee institutution were partly religious in nature since it was imparting education to the Christians and was giving financial aid to the Diocese of Jalandhar. It was also noticed by the Chief CIT that for the last three years under the head of education extension services a sum of ₹ 24,00,000, ₹ 75,84,700 and ₹ 17,76,378 had been paid and the memor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd objects were to set up a educational charitable society and to impart education to all without any discrimination of caste and creed. It is further pleaded that the memorandum of association of the Diocese of Jalandhar was also charitable in nature and, therefore, the order of respondent No. 3 was not justifiable. That in our view, the findings of respondent No. 3 cannot be faulted with and are liable to be upheld as there is no illegality or impropriety in the order of respondent No. 3, which after examining the record and asking for explanation of the assessee has come to the conclusion that the funds are being used by the institution for religious purpose and the institution is further diverting funds to the Diocese of Jalandhar un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a particular case by the terms of a will, legacy, bequest grant etc. (f) To invest or deal with money of the association not immediately required upon securities or in such manner as from time to time may be determined by the governing body of association, and to lend moeny with or without security. (g) To invest or deal with the money of association or authority, whether supreme, State, District, municipal, local or otherwise that may seem to be conductive to the object of the association or to any of them and to obtain from any Government or authority such rights, concessions and privileges as the association may think desirable and to obtain carry on, exercise and comply with any such arrangements, rights, privileges and concession ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se (supra) has also held as under : From the aforesaid view expressed by Hon'ble the Supreme Court it is evident that at the initial stage when the application for exemption is filed by an educational institution the scope of inquiry is restricted only to ascertain the genuineness of the activities of such an institution. Such an inquiry as per the provisio may even extend to the examination of accounts of the institution, application of its income to the object and purposes of education and other cognate aspects as have been indicated in the observation made by their Lordships. Once on the basis of genuineness of the activities of an educational institution approval is granted for exemption then the monitoring provisions would come ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a proper manner under the unnumbered 13th proviso to s. 10(23C) of the Act. In the present case, respondent No. 3 after examining the record has come to a valid conclusion that there has been a diversion of funds and the institution is not existing solely for educational purposes. Therefore, in our opinion the benefit under s. 10(23C)(vi) of the Act has been rightly declined which cannot be interferred with in exercise of extraordinary writ jurisdiction under Art. 226/227 of the Constitution of India as it is settled law that the Writ Court is not to sit in appeal over the decisions of the authorities and it has only to be seen whether the authorities acted within the scope of their power and a proper procedure was followed and there was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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