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TMI Blog2024 (1) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... t substantial amounts of its so-called receipts out of the regulated banking channels. Society s indulgence in cash transactions makes the activities not amenable to proper verifications. It doesn t make the functioning of the entity, based on public funding and sitting over public money, transparent and amenable to scrutiny by the beneficiaries from amongst the general public as also the regulating agencies. In the light of aforesaid discussion the issue is restored to the file of Learned CIT(Exemptions) to examine the amended and active Memorandum of Association and bye-laws of the Society for the purpose of satisfaction about the genuineness of the activities of Society and pass order afresh in the light of aforesaid observations. Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d therein aims and objectives were re-defined including; i. to establish, finance, manage and run educational institutions from lowest level to highest level like Preparatory schools, Middle schools, Sr. Sec. Schools, Degree Colleges, College of Education, Professional Course Institutes like Engg. Degree College, Polytechnics with different diploma courses, Medical College, Physical Education Institute, D-Pharmacy College etc. Learned CIT(Exemptions), however, has erroneously considered the scope of activities as per the Memorandum of Association dated 29.04.1994. 5. At the same time Learned CIT(Exemptions) has fallen in error to examine the issues of grant of registration u/s u/s 12AA 80G(5)(vii) of the Act, on basis that asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inent to mention at this point that the applicant society is the managing committee for the school. The applicant has claimed exemptions u/s 10(23C)(iiiad) in past preceding years. The applicant society has taken itself to be an institution running solely for education purpose in past preceding years and has claimed exemption u/s 10(23C)(iiiad) of the Act by depicting its aggregate receipts under Rs. 1 Crore in past years. In that context the applicant had all the reasons to apply for exemption under the provision of section u/s 10(23C)(vi) rather than 12AA. This following the statutory provisions, would have necessitated an application u/s u/s 10(23C)(vi) as per the scheme of the I.T. Act,1961. Although the judicial precedents have allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to manage and run DVM Public School. In fact the name clearly is the managing committee for the school. The same memorandum has now been utilized to also run a college named DVM College of Education . Running of a college is a clear cut infraction of the bye-laws etc of the society intended to run a school. Also, none of the financial statements clarify the amounts attributable to the DVM College of Education . Such practices make the examination of genuineness of activities difficult. Seemingly the applicant society has been claiming income earned from the college as exemption continuously u/s 10(23C)(iiiad) without the college being part of the bye-laws/objects of the society. It clearly leads to conclusion that the applicant is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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