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TMI Blog2020 (8) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... e Appellant Trust and to establish that the activities carried out and the expenditure incurred by the Assessee Trust could not be related to the educational activities of the Appellant Trust by any stretch of imagination. No such exercise of either bringing the evidence on record or controverting or rebutting the evidence produced by the Assessee before the Chief Commissioner appears to have been undertaken by the learned Chief Commissioner. A mere reference to the expenditure incurred and the Head of expenditure in question while rejecting the Application under Section 10(23C)(vi) of the Act is not enough to reject the Application under the provisions of the Act. The very purpose of educational activities and charitable activities for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 961. 3. The reasons assigned by the Tribunal in its order are quoted below for ready reference:- (i) Heard both sides. Perused the order of the Chief Commissioner. On a perusal of the object clauses of the trust deed, we find that the assessee is established not only for managing all types of educational institutions but also to promote finance, hospitals, research centers in medical science. On a perusal of the profit and loss account and income expenditure account of the assessee, we find that the assessee incurred certain expenditure towards awareness on agriculture, awareness on scientific research programme and blood donor camp expenses, medical treatment expenses, free eye camp activity which goes to show that assessee's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... culture. A sum of ₹ 55,000/- has been incurred for free medical treatment. A sum of ₹ 27,480/- is spent towards free eye camp activity. Since the trust is existing not solely for education but also for other activities, Exemption u/s 10(23C) iv is hereby denied in their application dated 29.9.2014 for a grant of exemption. Exemption u/s 10(23C)vi is hereby rejected. 5. The Assessee has sought to raise the following questions of law in the present Appeal filed under Section 260-A of the Act before us:- (i) Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in upholding the order of the Chief Commissioner of Income Tax, rejecting the application of the assessee for grant of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to specifically emphasize that the Trust exists solely for the purpose of engaging the above services. The said Resolution dated 29.7.2015 is also quoted below for ready reference:- The objects of the trust shall include and be restricted to the following only-To establish, promote, finance and maintain and manage all type of educational institutions and individuals for the advancement of education of knowledge in arts, Science, Literature, humanity and all other useful subjects in all their manifestations. He, therefore, submitted that the Appeal of the Assessee deserves to be allowed. 7. In support of his contentions, the learned counsel for the assessee relied upon the following decisions:- (i) Director of Income Tax ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n those mentioned in subclause (iiiab) or sub-clause (iiiad) and which may be approved by the prescribed authority; 10. Having heard the learned counsel for the parties, we are of the opinion that the learned Chief Commissioner has not brought on record any evidence for holding that the expenditure incurred in question did not relate to the educational activities of the Appellant Trust, which runs a School. The expenditure incurred to the extent of ₹ 6,00,763/- for Awareness on Agriculture, ₹ 55,000/- for Medical Camps and ₹ 27,480/- for Eye Camp activity could very well be part of the activities carried out in the School itself. We cannot accept the view of the learned Chief Commissioner that these expenditure incurr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es is allowed. 14. In these circumstances, we are not inclined to uphold the order passed by the Tribunal dated 27.11.2015 which upholds the order dated 10.8.2015 passed by the learned Chief Commissioner. Instead of answering the questions at our own end at this stage, we are inclined to remand the case back to the learned Chief Commissioner of Income Tax, Trichy. Further, we are not inclined to go into the details of the decisions cited by the learned counsel for the Appellant/Assessee as we are inclined to remand the matter to the learned Chief Commissioner. 15. In these circumstances, we hope and expect that the learned Chief Commissioner would pass fresh orders on the said Application of the Assessee dated 29.9.2014 after giving d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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