INCOME TAX ACT, 1961

Section 10(23C)(vi)

Exemption under section 10(23C)(vi) - Educational institution - Rejection of application alleging that registration under section 12AA already granted -

Assessee-educational society was engaged in charitable activities and was also running a school. It was granted registration under section 12AA. Further, it also applied for approval under section 10(23c)(vi). CIT rejected the application made for such approval on the ground that as assessee was already granted registration under section 12AA, there was no justification for seeking approval under section 10(23C)(vi). Held: Assessee was having objects both in the nature of performing charitable activities and also running for educational purpose without any purpose of earning profits. Therefore, for getting both the exemptions, the assessee was required to be separately registered under section 10(23C)(vi) and registration under section 12AA. Both the provisions work independently and there is no provision of law which shows that if the assessee is registered under section 12AA it cannot be granted claim under section 10(23C)(vi) or vice versa. Accordingly, the CIT before denying approval under section 10(23c)(vi) should have focused on examining the activities undertaken by the assessee rather than denying it merely because the assessee was enjoying registration under section 12AA. Hence, the matter was remanded to CIT for afresh examination.

REFERRED :

FAVOUR : In assessee's favour by way of remand

A.Y. :

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