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TMI Blog2020 (3) TMI 784X X X X Extracts X X X X X X X X Extracts X X X X ..... section 10(23C)(vi) of the Income Tax Act. 4. The rejection of application is unlawful and needs to be deleted. 5.The appellant craves leave to add, alter and for delete any of the grounds of appeal. 3. At the outset Ld. Counsel for the assessee submitted that the issues raised in this appeal are squarely covered by the decision of the Co-ordinate Bench, Indore in the case of Reva (Sunil) Educational Society, ITA No.866/Ind/2018 order dated 21.11.2019. 4. Per contra Ld. Departmental Representative could not controvert the submission made by the counsel for the assessee and raised no objection if the decision of the Tribunal in the case of Reva (Sunil) Educational Society is applied and the matter is restored to Ld. CIT (Exemption), Bhopal for fresh adjudication. 5. We have heard rival contentions perused the records and carefully gone through the decision of the Co-ordinate Bench. We observe that the assessee society got registered with Registrar of Firms & Societies on 17.7.2014. The assessee society is also registered u/s 12AA of the I.T. Act vide order dated 9.5.2016 for the purpose of carrying charitable activities. The main objects of the assessee society are; (i) To ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... njunction with others and to do all other such things as the society may consider necessary, incidental or conducive to the attainment of the above objects. 11. We have also observed that the assessee society enjoys the registration u/s 12AA of the Act granted on 30.1.2017 which establishes that it is running for charitable activities. As regards application u/s 10(23C)(vi) of the Act during the course of hearing assessee society made following submission before Ld. CIT (Exemption):- Reg: Reva (Sunil) Education Society, Indore PAN "AACAR4988D" Sub.:Your notice no.ITBA/EXMF/EXM17/2018-191/1010275227(1) Sir, With reference to the above, we hereby submit the following information and Particulars as required in seriatim as under: _ 1.That Books of accounts with supporting vouchers are Produced herewith. 2. That regarding sources of funds, it is submitted that the assessee did not received any corpus fund and /or other fund during the financial year 2016- 2017. With regard to creditors and liabilities, it is submitted that it consist of advance fees received of Rs. 10200/-, which is fees received from the students of the school runned by the assessee in advance for the nex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations during the period 2015-16 to 2016-17 and therefore not applicable. That the fees structure of the school operated by the assessee is enclosed herewith. 11.That the details of the student giving name of the student, father's name, address with summary giving number of student's class wise is enclosed herewith, And there was no student under RTE at that time. 12. That in respect of Lease rent paid of Rs. 480000/- per month of the property situated at Revenue Area, Anjad dist. Barwani taken on lease rent, it is submitted that the school is situated in Anjad Dist. Barwani which is one of the posh areas of the Barwani District and lease rent paid is in accordance as per the market rate of the area. The size of the property taken on rent is 3.50 Acres. The payment of the lease rent is made through the banking channel and tds is made by the assessee on lease rent paid. The lease rent income is shown by the owners of the property in their income tax return. Copy of the lease rent agreement is already submitted with earlier submission. 13. That in respect of amendment of bye laws, it is submitted that assessee case applied for the amendment of bye laws in the office o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed registration u/s 12AA as well as approval u/s l0(23C)(vi), if registration is withdrawn at some point of time clue to certain adverse findings, the withdrawal of approval u/s 10(23C)(vi) shall not automatic but will depend upon whether these adverse findings also impact the conditions necessary to keep approval u/s 1O(23C)(vi) alive. 13. Hon'ble jurisdictional High Court in the case of CIT V. Franciscan Clarist Society (supra) held that without considering the actual activities undertaken by the society the exemption cannot be denied merely relying on the bye-laws. 14. Examining the facts of the instant case in the light of the above judgment as well as Central Board of Direct Taxes Circular No.14 of 2015 dated 17.8.2015, we observe that the assessee society is having the object both in the nature of performing charitable activities and also running for educational purpose without any purpose of earning profits. Claiming exemption for the profits earned from performing educational activities is provided in Section 10(23C)(vi) of the Act and the benefit of claim of exemption for receipts/income from charitable activities is provided u/s 11 of the Act. For getting both the exe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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