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TMI Blog2020 (1) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... [2015 (3) TMI 619 - SUPREME COURT] and American Hotel and Lodging Association, Educational Institute V. CBDT (2008 (5) TMI 17 - SUPREME COURT ) . The Bench has specifically noted the distinction between satisfaction in regard to prima facie conditions required for the grant of approval and the monitoring conditions relating to application/accumulation/deployment of income as well as other compliances. The Bench has stated that the grant of approval would only require a satisfaction of the Officer in regard to the existence of the University and the avowed objects. The question of whether the Society has, in fact, complied with the statutory provisions strictly is a matter of assessment and would be dealt with by the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resaid two activities disentitles the petitioner to the approval and exemption sought. - Writ Petition Nos.9510 and 9511 of 2011, 5030 and 5031 of 2013 and 8201 of 2012 and M.P.Nos.1 and 1 of 2011,1 and 1 of 2013 and 1 of 2012 - - - Dated:- 25-10-2019 - Dr. Justice Anita Sumanth For the Petitioner : Mr.A.S.Sriraman For the Respondent : Mrs.Hema Muralikrishnan COMMON ORDER This batch of five Writ Petitions have been filed by two Petitioners, viz., i) Hindustan Engineering Training Centre (W.P.Nos.9510 of 2011 and 5030 of 2013 relating to Assessment Years (A.Y.) 2010-11 and 2012-13) and ii) Hindustan Institute of Technology and Science (W.P.Nos.9511 of 2011, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Institution. e) To take over any institution, institution or trust having objects similar to that of the institution in the advancement of its objects. f) To impart training and instructions in practical professional areas' 4. The petitioner has set up and manages several Universities, Schools and Educational campuses in different parts of the Country and sought an approval for exemption in terms of Section 10(23C)(vi) of the Act for the income earned therefrom. 5. As far as W.P.No.9511 of 2011 is concerned, the application came to be rejected by the Commissioner of Income Tax (R3) who notes in the narration that a survey under Section 133A of the Act had b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity' under Section 3 of the University Grants Commission Act. Serial No.4(a) thereof states:- '4(a) For the purpose of recognition as a university an institution should generally be: (i) Engaged in teaching programmes and research in chosen fields of specialisation which are innovative and of very high academic standards at the Master's (or equivalent) and/or research levels. It should also have a greater interface with society though extra mural, entension and field action related programmes.' 10. The contention of the petitioner is the aforesaid was a prescribed guideline, though not a mandatory one and hence the petitioner following prudence, included ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew that, the respondent has, in the impugned orders adopted a view that is premature and Writ Petitions in W.P.Nos.9511 of 2011 and 8201 of 2012 are allowed. 14. Coming to W.P.Nos.5030 and 5031 of 2013, the Assessing Authority rejects the exemption granted on the ground that the application in Form 56D was filed on 30.09.2011, as being relevant to Assessment Year 2012-13 and not for financial year 2010-11 as mentioned in the application. He also states that no evidence was filed by the petitioner to the effect that this error was subsequently corrected. Before the Commissioner, the contention of the petitioner was that there was a clerical mistake in relation to the year mentioned and the application would relate to year en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17. In W.P.No.9510 of 2011, the impugned order rejects the petitioners' claim upon consideration of clauses (c) and (d) of the MOA, wherein the petitioner deals with the acquisition or lease of immovable properties as well as investment of funds in the equity of any company or any other organisation that, according to the respondent, establish that the society did not exist solely for 'educational purpose' as required under Section 10(23C). The clauses are extracted below for better appreciation: '(c) To acquire properties both movable and immovables. (d) To invest funds of the society in the equity of any company or any other organisation and advance funds for the promotion and ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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