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TMI Blog2023 (6) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... ncerned, the Apex Court [ 2022 (10) TMI 855 - SUPREME COURT] has held that the registration under different statues is also a relevant consideration while deciding the application for approval under Section 10(23C) of the Act. In the case on hand, we are not dealing with a situation where the IT Department was considering any application for granting exemption. On the other hand, the department had issued the exemption certificate and the AO on an incorrect assumption has treated the money collected by the assessee as capitation fee under the KEI (Prohibition of Capitation Fee) Act. Therefore, the said authority does not lend any support to the Revenue. This court has already taken a view in Kammavari Sangham and the same is applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l institutions is overshadowed by profit-making motives of the Society and the assessee trust is making huge surplus every year and is involved in collection of capitation fee in the guise of Voluntary Contributions and is evident that the charity is no more in spirit and practice and the assessee is indulging in commercial activity? 2. Heard Shri E.I.Sanmathi, learned standing counsel for the Revenue and Shri Vikram Huilgol, learned Senior Advocate for the assessee. 3. Undisputed facts of the case are, assessee is a charitable trust registered under Section 12A of the Income Tax Act, 1961 [IT Act] . It has obtained approval under Sections 11 and 12 of the Act. For A.Y. 2012-13, assessee filed returns of income declaring incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In reply, Shri Vikram Huilgol, learned Senior Advocate, placing reliance on the decision of this court in Kammavari Sangham Vs. Deputy Director of Income-tax (Exemptions) [2023] 146 taxmann.com 367 (Karnataka) para 16 submitted that this court has taken a view that so long as exemption certificate is in force, the Income Tax Authorities are bound by the same and that assessee had filed an affidavit before the ITAT stating that no action under the KEI (Prohibition of Capitation Fee) Act was initiated against the assessee. The ITAT has considered this aspect and recorded a finding in para 18 of the impugned order that the said affidavit was not contraverted by the Revenue. Therefore, the very premise of the Revenue that assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not contradicted the said affidavit either orally or by filing a counter affidavit. Based on this factual aspect, the ITAT has recorded thus in the impugned order; 37. In the light of the above, we are of considered opinion that the Appellant is carrying out education which is charitable within the meaning of section 2(15), it has applied and/ or accumulated sums as required by section 11(1)(a), the explanation thereto and section 11(2), it is duly registered under section 12A and has not violated section 13. Further there is no private gain and all the funds are ploughed back only into education. Thus accumulations and application are as per the provisions of section 11. Therefore, exemption under section 11 and 12 has to be al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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