ANAND EDUCATION SOCIETY Vs. DIRECTOR GENERAL OF IT

JUDGEMENT

(1.) Anand Education Society has filed the present writ petition impugning the order dated 29.04.2010 passed by the Director General of Income Tax (Exemption) respondent No. 1 rejecting the application filed by the petitioner in Form No. 56D for grant of registration u/s 10(23C)(vi) of the Income Tax Act, 1961 (Act for short) for the assessment year 2008-09 onwards. The petitioner society was set up vide certificate of registration dated 4.11.1982. It has been managing and running a school in Delhi since 1988. The petitioner was registered u/s 12A of the Act on 04.04.2005.

(2.) The impugned order dated 29.04.2010 refers to the balance sheet/profit & loss account of the petitioner society for the assessment years 2006-07 to 2009-10. The respondent No. 1 in the impugned order has pointed out discrepancies with regard to sale of buses, vehicles maintenance, maintenance of furniture and sale of furniture/fixed assets. It appears that these discrepancies have been culled out on the basis of the records/accounts which were produced by the petitioner during the course of proceedings u/s 10(23C)(vi) of the Act. The final analysis and reasoning of the respondent No. 1 in the impugned order reads:-

(3.) Learned counsel for the petitioner has drawn our attention to the jurisdiction, scope and ambit of the power exercised by respondent No. 1, while adjudicating an application u/s 10(23C)(vi) of the Act. The Supreme Court of India in American Hotel & Lodging Association Educational Institute v. CBDT, 2008 301 ITR 86, had examined the provisos to the aforesaid section and the scope and ambit of the jurisdiction and power exercised by the prescribed authority to whom an application for registration is made. After referring to provisions and the reasons for inserting Section 10(23C)(vi) it was held:-