B.S. ABDUR RAHMAN INSTITUTE OF SCIENCE & TECHNOLOGY Vs. THE CHIEF COMMISSIONER OF INCOME TAX - 3, CHENNAI

JUDGEMENT

(1.) The petitioner has filed the above Writ Petition to issue a writ of certiorarified mandamus to call for the records dated 30.09.2015 on the file of the respondent and to quash the same and to direct the respondent to grant exemption sought for by the petitioner in terms of Sec.10(23C)(vi) of the Income Tax Act.

(2.) According to the petitioner, it is a Society constituted in terms of the provisions of the Indian Societies Act, 1975. According to the petitioner, the objectives for which the Institute is established are:

(3.) According to the petitioner, the Institute was established for the purpose of dissemination of organized education and it has been engaged only in activity ever since inception. Further, the petitioner contended that it does not engage in other activity other than the purposes stated above. The petitioner has been granted Registration under Ss. 12AA and 80G of the Income Tax Act vide approvals dated 18.12.2009 and claims exemption in terms of Sec. 11 of the Act in respect of the income earned from the charitable and educational activities carried on by it. Under Sec. 11 of the Income Tax Act, an exemption from income derived from activities of charitable nature has been provided. As per Sec. 2(15) of the Act "Charitable purpose" means "charitable purpose includes relief of the poor, education, medical relief, [preservation of environment (including watersheds, forests and wild life) and preservation of monuments or places or objects of artistic or historic interest] and the advancement of any other object of general public utility". The petitioner contended that they were advised to seek and obtain exemption in terms of Sec. 10(23C)(vi) of the Act that provides an exemption for an University or an educational institution solely for educational purposes and not for purposes of profit. The petitioner filed an application in Form -56D seeking approval for exemption under Sec. 10 (23C)(vi) of the Act for the assessment year 2014 -15 on 30.09.2014. The said application was rejected by the order dated 30.09.2014 on the ground that the petitioner Society did not exist solely for educational purpose and in fact had multiple objectives and therefore, the Society does not qualify under Sec. 10 (23C)(vi) of the Act in question. According to the petitioner, the respondent came to the said conclusion on the basis of existence of the 4th objective in the original memorandum that has been deleted and it has never been acted upon. The show cause notice issued on 23.09.2015 to the petitioner calling upon certain clarification.