9911796707
TMI Blog2024 (9) TMI 976X X X X Extracts X X X X X X X X Extracts X X X X ..... h the authorities that the appellant University does not satisfy the objects and the genuineness of its activities as required under the 2nd proviso to Section 10(23C) of the IT Act. Orders impugned passed by both the authorities are hereby set aside and the matter is remitted to the CIT(E), Bhopal to consider and decide the application under Section 10(23C)(iii) afresh in light of the decision of the Supreme Court in New Noble Educational Society [ 2022 (10) TMI 855 - SUPREME COURT] . - Hon'ble Shri Sanjay K. Agrawal And Hon'ble Shri Amitendra Kishore Prasad , JJ. For the Appellant : Mr. Apurv Goyal and Mr. Nikhilesh Begani , Advocates For the Respondent : Mr. Amit Chaudhari and Ms. Ankita Gouraha , Advocates ORDER Sanjay K. Agrawal , J. 1. This tax case has been preferred under Section 260A of the Income Tax, 1961 calling in question legality, validity and correctness of the order dated 31-5-2024 passed by the Income Tax Appellate Tribunal (ITAT), Raipur Bench, Raipur in ITA No.171/RPR/2023 affirming the order dated 15-3-2023 passed by the Commissioner of Income Tax, Exemption, Bhopal. 2. This tax case was admitted for hearing on 30-8-2024 by framing the following subst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion not finding the reply satisfactory, rejected the application against which the assessee preferred an appeal before the ITAT which was also dismissed holding that the appellant was unable to furnish necessary information / details before the CIT(E) which was well within the jurisdiction of the CIT(E) to call for such details/documents/ information against which the appellant preferred this tax case. 4. Mr. Nikhilesh Begani, learned counsel appearing for the appellant / assessee, would submit that both the authorities i.e. the Commissioner of Income Tax, Exemption CIT(E) and the Income Tax Appellate Tribunal (ITAT) have misdirected themselves in rejecting the application overlooking the provisions contained in Section 10(23C)(iii) of the IT Act, which mandates the consideration as to whether the appellant University being the educational institution existing solely for educational purposes and not for purposes of profit as contained in sub-clause (iii-ab) or subclause (iii-ad) by recording a finding which is perverse to the record, which requires to be set aside in light of the decision of the Supreme Court in the matter of New Noble Educational Society v. Chief Commissioner of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause (iv) of the said proviso, pass an order in writing granting approval to it provisionally for a period of three years from the assessment year from which the registration is sought, and send a copy of such order to the fund or trust or institution or university or other educational institution or hospital or other medical institution. 8. The aforesaid provision came up for consideration before the Supreme Court in New Noble Educational Society (supra) and summarised the conclusions with regard to Section 10(23C) of the IT Act holding that the Commissioner or the authority concerned, while considering an application for approval and the further material called for (including audited statements), should confine the inquiry ordinarily to the nature of the income earned and whether it is for education or education related objects of the society (or trust). It has been observed in paragraphs 82 83 of the report as under: - 82. The conclusions of this Court are summarised as follows: 82.1. It is held that the requirement of the charitable institution, society or trust, etc. to solely engage itself in education or educational activities, and not engage in any activity of profit, mea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lies to newly set up charities, trusts, etc. the proviso under Section 10(23-C) is not confined to newly set up trusts it also applies to existing ones. The Commissioner or other authority is not in any manner constrained from examining accounts and other related documents to see the pattern of income and expenditure. 82.7. It is held that wherever registration of trust or charities is obligatory under State or local laws, the trust, society, other institution, etc. concerned seeking approval under Section 10(23-C) should also comply with provisions of such State laws. This would enable the Commissioner or authority concerned to ascertain the genuineness of the trust, society, etc. This reasoning is reinforced by the recent insertion of another proviso of Section 10(23-C) with effect from 1-4-2021. 83. In a knowledge based, information driven society, true wealth is education and access to it. Every social order accommodates, and even cherishes, charitable endeavour, since it is impelled by the desire to give back, what one has taken or benefitted from society. Our Constitution reflects a value which equates education with charity. That it is to be treated as neither business, trad ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
