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TMI Blog2016 (3) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... t 'the Act'). 2. Briefly, the facts of the case are that the assessee is a society running an educational institution in the name of Kids-R-Kids in Sector 42, Chandigarh, which is from play ways to class VIII level. It is a registered trust, whereby the trust deed was registered by Sub Registrar, Chandigarh on 29.11.2000. It is also registered under section 12AA of the Income Tax Act, 1961 (in short 'the Act') by CIT-II, Chandigarh vide his order dated 28..12.2012. During the year, the assessee trust applied for grant of exemption under section 10(23C), clause (vi) of the Act vide application dated 24.9.2014 in Form No.56D. The Principal Chief Commissioner of Income Tax issued a letter to the society calling for certain information ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e exemption available U/s 10(23C) (vi) of the Income Tax Act, 1961. The Trust be granted the exemption under the said section. 3. The Ld. Pr. Chief Commissioner of Income Tax, by relaying exclusively on the provision of the Right of Children to Free And Compulsory Education Act, 2009, for denying the exemption U/s 10(23C)(vi) of the Income Tax Act, not only has acted contrary to provision of the Income Tax act, 1961 but has gravely erred is invoking and assuming authority under a Alien Act. The Trust be granted exemption under the said section. 4. That both the "Income Tax Act, 1961" & The Right of Children to Free And Compulsory Education Act, 2009" are mutually exclusive. Denial of exemption U/s 10 (23 C) (vi) of the Income Tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.152 of 2013, dated 6.5.2014, it has been held that RTE cannot be enforced against the unaided schools both minority as well as non-minority. The contention of the learned counsel for the assessee was that even if it has not complied with the provisions of Right to Education Act, it has not yet been de-recognized by the appropriate authority. It has been granted registration under section 12AA of the Act and has been running educational institution in the name of Kids-R-Kids International Educational & Social Welfare Trust. It was stated that the approval under section 10(23C)(vi) of the Act should not be denied to the assessee only because it has not complied with one of the conditions of Right to Education Act. The Principal Chief Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority is defined under Rule 2CA of the Income Tax Rules. Since the present issue does not involve the same, we are not going into that. There are two proviso attached to section 10(23C) of the Act which are relevant to decide the issue in question. The provisions read as under : "Provided that the fund or trust or institution [or any university or other educational institution or any hospital or other medical institution] referred to in sub-clause (iv) or sub-clause (v) [or sub clause (iv) or sub-clause (via) shall make an application in the prescribed form and manner to the prescribed authority for the purpose of grant of the exemption, or continuance thereof, under sub-clause (iv) or sub-clause (v) [or sub-clause (vi) or sub-clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities'. In view of this, we understand that the only requirement for granting registration under this section is ssatisfaction of the prescribed authority with regard to the genuineness of the activities of the assessee. Very conveniently, we can conclude that for granting registration, the prescribed authority has to do whatever he thinks fit in order to satisfy himself about the genuineness of the activities of the trust. 10. Now in this background we will analysis the facts of the present case. There is no doubt to the fact that the assessee is a trust registered under section 12AA of the Act which makes it quite clear that the assessee is pursuing charitable activities, otherwise also, no doubt has been cast on the fact that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucation, Government of National Capital Territory of Delhi. An authority constituted under the Central Act herein the Indian Income Tax Act cannot act on the basis of its own personal beliefs and philosophy however laudable, they may be as they have no role to play as the issues are to be decided and concluded on the basis of rules and provisions of the Income-tax Act, herein - section 2(15) of the Act. The decisions are not to be coloured or stained by personal whims and biases and are to be illuminated by the Income Tax Act Section 2(15) of the Income Tax Act." 12. The provisions of section 10(23C)(vi) of the Act is quite clear to the fact that the only reason for denial of said exemption can be the case where the officer is not satisfi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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