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TMI Blog2016 (10) TMI 593X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. CCIT declining grant of exemption u/s 10(23C)(vi) - Decided against assessee. - ITA No.1408(Bang) 2015 - - - Dated:- 26-8-2016 - SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SMT ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER For The Assessee : Shri S. Parthasarathi, Advocate For The Revenue : Dr. P.K.Srihari, Addl.CIT ORDER PER A.K.GARODIA, AM: This is assessee s appeal directed against the order passed by the ld. CCIT, Bangalore dated 29-09-2015 u/s 10(23C)(vi) of the IT Act, 1961. 2. The grounds raised by the assessee are as under; 1. On the facts of the case, he ld. CCIT erred in declining to grant exemption u/s 10(23C)(vi) of the IT Act, to the appellant. 2. The order of the ld. CCIT is opposed to l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld be set aside and he should be directed to grant registration to the assessee u/s 10(23C)(vi) of the Act. He also submitted that the registration u/s 12A of the Act was also granted to the assessee. Reliance has been placed on the following judicial pronouncements. a) CIT Vs Vidya Vikas Vihar, 265 ITR 489(Bom) b) CCIT Vs St. Peter s Educational Society, 385 ITR 66(SC) c) Ecumenical Christian Centre Vs CIT, 139 ITR 226(Kar.) 4. As against this, ld DR of the revenue supported the order of the ld. CCIT. He also submitted that the registration u/s 12A of the IT Act is different then granting exemption u/s 10(23C)(vi) of the Act. Regarding various judgments cited by the ld. AR of the assessee, he submitted that these judgm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation and training of personnel of banking and financial institutions, (g) To provide consultancy services under its auspices or through its faculty to banks or any other institutions or individuals on matters having a bearing on production in Banking services, optimum use of financial resources or any other matter conducive to economic betterment. (h) To disseminate information on manaqement know-how by undertaking and providing for the publication of journals, reports, pamphlets and other literature and research papers and books ln furtherance of tile objects. (i) To establish and maintain libraries arid information services, (j)To establish and maintain regional centres to promote the objects of the society. (k) To instit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It can be construed that the applicant trust is not satisfying the condition envisaged in section 10(23C)(vi) that the applicant should be existing solely for educational purposes Hence exemption under section 10(23C)(vi) of the Income tax Act, 1961 cannot be granted for the Assessment Year 2014-15. Accordingly, the assessee's application for grant of exemption for the above said period is rejected. 7. From the above paras from the order of the ld. CCIT, it is seen that his objections are regarding clause-D G of the objects of the assessee society. As per clause-D of the objects of the assessee society which is also reproduce above, the assessee society will assist banking institution in matters such as appraisal programmes, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciety is to open and run college of Polytechnic to impart technical education and one of the objects shown in the constitution of the society is to construct houses for weaker sections, if anything remains surplus after incurring expenses on the activities of imparting education. But this was not implemented or acted upon by the assessee society. Under these facts, the finding of the Bombay High Court is that it is not in dispute that the assessee and the institution solely existed for educational purposes and the individual object of construction of houses for weaker sections was not implemented or acted upon by the assessee in the relevant assessment year and under these facts and circumstances of the case, no fault can be found with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is entitled for an order u/s 80G of the Act. In that case, the CIT laid some stress on the use of the expression restaurants in clause-3A(vi) and that no specific reply had been given in that behalf. It is noted by the Hon ble High Court on page-232 233 of 139 ITR that there was no restaurants as such which was being run by the company and in reply, it was stated that whatever facilities were given were only to benefit the inmates of the institution and cater to their needs for food etc. Thereafter, it has been noted that object clause-3(A(iv)specifies an object to undertake farming. Thereafter, it is noted that this was also explained in the reply stating that the company had about 30 acres of land and what it was doing was only by wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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