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TMI Blog2021 (4) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... any discrimination incase, colour, creed, poor and rich etc; to establish, run and manage senior secondary schools, secondary schools, Nursery schools, Degree Colleges, Pharmacy Colleges, College of Nursing, Physical Education College etc; Providing vocational training to the unemployed youth, women widows, adolescent girls etc. on sewing, handicraft and other vocational courses." 3. The applicant/assessee had applied for grant of approval for the purpose of claiming its income exempt, as per the provisions of section 10 (23C) (vi) of the Act, vide its application in Form No. 56D dated 04.06. 2018. The Ld.CIT(E) after taking note of the aims and objects of the applicant society proceeded to determine whether its activities were in sync with the stated objects and accordingly sought certain clarifications/documents to be provided by the assessee, which find mention at para 3 of the order. Due reply of the same was filed by the applicant/assessee as noted at para 4 of the order. That after going through the same the Ld. CIT(E) noted that in the preceding two years the aggregate receipt of the applicant/assessee had exceeded Rs. 1 crore, while the assessee had claimed exemption of it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitutions, which are registered as a society would continue to retain their character as such and would be eligible to apply for exemption under Section 10(23C)(vi) of the Act." It is clear that the educational institution (being run at present) is not registered as a society the spirit of the ratio laid down in the case of Pinegrove International Charitable Trust. In the instant case applicant being a society prima fade does not get covered under section 10(23C)(vi) of the Act. This view is further upheld by Hon'ble ITAT Chandigarh "B" Bench in the case of M/s Prakash Education Society Vs, CIT (Exemptions) Chandigarh in ITA No.1083/Chd/2016. 7. Keeping in the view of decision of the Hon'ble Punjab & Haryana High Court and also the Hon'ble ITAT Division bench "B" Chandigarh (refer para '6), it is safe to conclude that the applicant being society is not entitled for approval u/s 10(23C)(vi). Further inadmissible claims for exemption in past also impinge on the extent and quality of surpluses being generated by the applicant society and whether the same are getting redeployment into education. Taking all the aforesaid into consideration, it is difficult to verif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f approval u/s 10 (23C)(vi) of the Act, the Ld. Counsel for the assessee contended that they were all either irrelevant, baseless or incorrect for the purpose of grant of approval. Vis- à- vis the assessee having incorrectly claimed exemption u/s 10 (23C)(iiiad) of the Act in the preceding two years, the Ld. Counsel for the assessee contended that the incorrect claim of exemption does not impinge upon its character as an institution existing wholly for the purpose of education, which is the only criteria which the applicant assessee needs to fulfill and satisfy for the purpose of grant of approval u/s 10 (23C)(vi) of the Act. As for the applicant society not qualifying as per the decision of the Hon'ble Jurisdictional High Court in the case of Pinegrove International Charitable Trust(supra), the Ld. Counsel for the assessee contended that the same has been incorrectly applied by the Ld. CIT(E) as is evident from the reproduction of the order of the Hon'ble Jurisdictional High Court itself wherein the Hon'ble High Court has clearly stated that the institutions registered as society would be eligible for grant of exemption and Pinegrove International Charitable Trust being re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause (via): Provided further that the prescribed authority, before approving any fund or trust or institution or any university or other educational institution or any hospital or other medial institution, under sub- clause (iv) or sub- clause (v) or sub- clause (vi) or sub- clause (via), may call for such documents (including (including audited annual accounts) or information from the fund or trust or institution or any university or other educational institution or any hospital or other medical institution, as the case may be, as it thinks necessary in order to satisfy itself about the genuineness of the activities of such fund or trust or institution or any university or other educational institution or any hospital or other medical institution, as the case may be, and the prescribed authority may also make such inquiries as i t deems necessary in this behalf." 8. As is evident from a bare perusal of the above, For the purpose of granting approval the prescribed authority is to satisfy himself about the objects and activities of the applicant university/institution, whether its income qualifies for exemption as such under the said provision. 9. Now in the present case undoub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23C)(iiiad) only in the later part of the preceding years, it applied for grant of approval in the impugned year. 11. As far as the Ld. CIT(E)'s finding that applicant society is not eligible for approval u/s 10 (23C)(vi) of the Act on account of the decision of the Hon'ble Jurisdictional High Court in the case of Pinegrove International Charitable Trust(supra) which addressed the issue whether the societies registered as such qualified as institutions for the purpose of grant of exemption u/s 10 (23C)(vi) of the Act, we find that the Ld. CIT(E) has clearly misread and misapplied the said decision as rightly pointed out by the Ld. Counsel for the assessee. The Hon'ble High Court in the said decision had clearly held the societies also as eligible educational institutions for exemption u/s 10 (23C)(vi) of the Act as is evident from the relevant portion of the order reproduced in the order of the Ld. CIT(E) also. The assessee, admittedly being registered as a society, it qualified for exemption u/s 10 (23C)(vi) of the Act, as per the said decision. In view of the same, the findings of the Ld.CIT(E) on this account also, we find is incorrect. 12. In view of the above we hold that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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