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TMI Blog2022 (5) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... in expansion of its activities and, consequently, further profit, but the said activities, being in the realm of education are, as aforesaid, charitable under the Act. We have, toward this, also gone through the rules and regulations of the assessee-society, including that per the latest amendment therein, i.e., on 28/12/2020 to find that there is no embargo in its charter on the earning of profits. None such is also observed either u/s. 80G(5) or the relevant rule, being r. 11AA. The same therefore does not serve as a valid ground for denial of approval. As perused each of the decisions cited by the Revenue, to find them as inapplicable. The same are, firstly, in respect of an Approval u/s. 10(23C)(vi), which provision clearly stipul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... val u/s. 80G(5)(vi) would stand to be withdrawn in consequence (s.293C). The said statement by the ld. CIT(E), not acted upon, is thus, to no consequence. Assessee appeal allowed. - I.T.A. No. 15/JAB/2019 - - - Dated:- 13-5-2022 - Shri Sanjay Arora, Hon ble Accountant Member And Shri Manomohan Das, Hon'ble Judicial Member For the Applicant : Shri Manoj Jain, FCA For the Respondent : Shri U.B. Mishra, CIT-DR ORDER PER BENCH This is an appeal by the assessee agitating the non-approval order of the Commissioner of Income Tax (Exemption), Bhopal ( CIT(E) ) dated 28-02-2019 passed under section 80(G)(5)(vi) of the Income Tax Act, 1961 (the Act ). 2.1 The facts of the case in brief are that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion to its students. 2.3 The ld. CIT(E) further noticed that the applicant had incurred huge capital expenditure on addition to the school building as well as expansion of its activities. The same was again only for the purpose of generating more profit, not charity. The motive of the applicant is to expand educational institutions on commercial lines, which could not be regarded as a charitable purpose. 2.4 The ld. CIT(E) further observed that there are substantial discrepancies in the amount stated to have been applied for charitable purpose and the amount of accumulation, i.e., as per the computation of total income and the Audit report (in Form 10B) respectively, the details of which are as under: (Amount in Rs.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in the case of Pradeep Education Society v. CIT (Exemption) ITAT Delhi 5. Judgment in the case of Artemis Education Research Foundation v. Commissioner of Income Tax (Exemptions) 6. Commissioner of Income Tax v. Maharaja Sawai Man Singh by Hon ble Supreme Court The ld. CIT-DR, would, in reply, rely on the following case law: 1. Rajah Sir Annamalai Chettiar Foundation v. Director of Income Tax (Exemptions) of ITAT, Madras 2. Aswini Sahakari Rugnalaya Research Centre [2021] 130 taxman.com 366 (SC) 3. Visvesvaray Technological University [2016] 68 taxman.com 287 (SC) 4. [2016] 73 taxman.com 286 (SC). 4. We have heard the parties, and perused the material on record. 4.1 The only reason for den ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit, so that in the facts of a given case, it could be contended that the pre-dominant purpose for the existence of the said institution is the earning of profit. The other decisions are qua the residual clause of s. 2(15), i.e., advancement of any object of general public utility , to which commercial considerations apply, in contradistinction to the other charitable purposes, including education . 4.3 As regards the objection with reference to the discrepancies in the assessee s accounts in view of the differences observed between the amount applied and amount accumulated as per the statement of computation of income (forming part of the return of income) and the audit report (in Form 10B), the same, to our mind, is a matt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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