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TMI Blog2016 (5) TMI 816X X X X Extracts X X X X X X X X Extracts X X X X ..... the case are that the assessee is a society registered under the Society Registration Act and is running a Preparatory School in the name of St. Stephen's Preparatory School, Sector 46A , Chandigarh since 2006 for student from play to KG. During the year the assessee society applied for grant of exemption under section 10(23C)(vi) of the Act vide application dt. 22/09/2014 in Form No. 56D. The Principal Chief Commissioner of Income Tax issued a letter to the society calling for information including information about compliance made to Right of Children to Free And Compulsory Education Act, 2009, RTE Act, regarding enrolment of students related to EWS category in all classes particularly at entry level. The assessee vide its letter dt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducation Act which is not applicable to the instant Society and as such rejection of registration on misinterpretation of the legal position is illegal, arbitrary and unjustified. 3. That the registration has been refused only on the basis of suspicion, conjectures and surmises which is not permitted under the Law and as such the order refusing registration is illegal arbitrary and unjustified. 4. Before us Ld. Counsel for the assessee stated that in the first place the provision of the RTE Act were not attracted on the assessee. Referring to the provision of section 2(n) of the RTE Act. Ld. Counsel stated that the RTE Act applied to schools imparting elementary education only which has been defined under section 2(f) to mean education ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. DR on the other hand relied upon the order of the Principal Chief Commissioner of Income Tax and stated that since the assessee society had not complied with provision of RTE Act it could not be said to be existing solely for the purpose of imparting education and was for the purpose of profit and therefore had been rightly denied approval under section 10(23C)(vi) of the Act. 6. We have heard rival submission and perused the orders of the authorities below and also the documents placed before us. 7. We hold that the Principal Chief Commissioner of Income Tax had erred in denying approval to the assessee society under section 10(23C)(vi) for not complying with the provision of the RTE Act. 8. We find that in the first place the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ols which are covered by the provisions of RTE Act are those which impart elementary education, meaning education from class 1 to class 8. In the present case it is an undisputed fact that the school run by the assessee society is imparting education below class 1. Clearly the asessee society is not a school as per the definition given in the RTE Act in section 2(n) and is therefore not covered by the provisions of the RTE Act. Further the provisions of Section 12(1)(c) read alongwith the proviso reveals that the where schools imparting elementary education are also imparting pre school education, the provision of compulsory admission to 25% students belonging to the weaker section of the society, shall apply to the pre school education adm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elhi Bench of the I.T.A.T. in the case of Civil Services Society Vs. DIT (Exemption) 93 DTR 314 (Del) in the following term : "6.2 No doubt to have a social conscience is a laudable human desire and the desire to ensure compliance in 9 letter and spirit to the stated government policy necessarily ought to throb in the heart of each and every citizen. However, while adjudicating on the issues which arise for determination under the Income-tax Act which is a Central Act enshrined in "List I" of the Constitution of India the tax adjudicator/judge empowered by a Central Act cannot usurp the power and role of an authority which as per the Constitutional scheme has been entrusted upon the state Administration and in this case on the Department ..... X X X X Extracts X X X X X X X X Extracts X X X X
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