KANYA PATHSALA TRUST Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition under article 226 of the Constitution of India challenges the legality and validity of the order dated October 12, 2011, passed by the Chief Commissioner of Income-tax, Shillong, rejecting the application of the petitioners seeking exemption under section 10(23C)(vi) of the Income-tax Act, 1961 ("the Act") and further seeks a declaration that petitioner No. 2 is entitled to exemption under the aforesaid provision. Facts of the case may be briefly noted.

(2.) Petitioner No. 1 is a trust called "Sree Kanya Pathshala Trust". The main object of petitioner No. 1 is to carry out educational activities, particularly to impart education to girls. Petitioner No. 2 is one of the units of petitioner No. 1.

(3.) Since petitioner No. 2 is an educational institution existing solely for educational purpose and not for the purpose of profit, it sought for exemption under section 10(23C)(vi) of the Act. However, the Assessing Officer, i.e., the Deputy Commissioner of Income-tax, Circle-Tinsukia, insisted on production of approval of the Chief Commissioner of Income-tax and in this connection, issued notice dated July 28, 2010. At that stage, petitioner No. 1 by his letter dated July 31, 2010, requested the Chief Commissioner of Income-tax, Shillong, for an early action on the application seeking exemption of income from payment of income-tax under section 10(23C)(vi) of the Act.