RABINDRANATH EDUCATIONAL TRUST RAYAGADA Vs. UNION OF INDIA

JUDGEMENT

(1.) IN the present Writ Petition, the Petitioner challenges the order of the Chief Commissioner of Income Tax, Orissa, Ayakar Bhawan, ' Bhubaneswar (hereinafter referred to as 'the CCIT') -O.P. No. 3 wherein the CCIT refused to grant exemption claimed under Section 10(23C)(vi) of the Income Tax Act, 1961 (hereinafter referred to as 'the IT Act') for the assessment years 2003 -04 and 2004 -05 on the ground that the said order has been passed illegally and arbitrarily.

(2.) BEREFT of unnecessary details, the facts and circumstances giving rise to the present Writ Petition are that the Petitioner is an Educational Trust registered with District Sub -Registrar, Rayagada on 17.08.1998. Its main object is to spread education and to establish high schools, colleges, technical institutes, medical and dental colleges etc. The Petitioner -Trust is running a college, viz., Institute of Advanced Computer and Research, Rayagada, AT: Prajukti Vihar, P.O./Dist: Rayagada, which is imparting technical education. The Petitioner has got approval from different authorities for running its technical institutions.

(3.) MR . Akhila Kumar Mohapatra, Learned Counsel for the Revenue vehemently argues that the Petitioner having violated the condition stipulated in 3rd proviso to Section 10(23C)(vi) by not investing the surplus funds in accordance with provisions of Section 11(5) of the IT Act is not entitled to avail exemption under Section 10(23C)(vi) for the assessment years 2003 -04 and 2004 -05. The Learned CCIT is fully justified in rejecting the Petitioner's claim for exemption under Section 10(23C)(vi) for these two years. Therefore, the petition is liable to be dismissed.