KATIANI EDUCATIONAL SOCIETY, MOHAL Vs. UNION OF INDIA

JUDGEMENT

(1.) BY medium of present writ petition a direction has been sought for quashing the order passed by the Chief Commissioner of Income Tax, whereby the petitioner has been denied the benefit of exemption, as provided under section 10(23C) (vi)/ (via) of Income Tax Act (for short, the Act), for the assessment year 2011 -2012.

(2.) THE petitioner is an educational society registered under the Societies Act, 1860 at District Kullu and applied for exemption under section 10(23C) (vi)/(via) of the Act before the competent authority vide form No. 56 (D) on 10.6.2011. It is claimed that when the application was being processed, a number of queries were raised by the department, which were duly replied to by the petitioner and accordingly its case was recommended to respondent No.3 i.e. Chief Commissioner of Income Tax for further necessary action. However, the respondent No. 3 vide order dated 28.6.2012, (for short the impugned order), denied exemption to the petitioner on the ground that the society does not exist solely for the educational purpose and it is existing for the purpose of profit.

(3.) THIS order has been challenged on the ground that respondent No. 3 has not appreciated the provisions of section 10(23C) (vi)/ (via) of the Act in its correct perspective and thereby reached to a wrong conclusion. It is also claimed that no reasonable opportunity of being heard had been afforded to the petitioner which is against the principles of natural justice and lastly it is claimed that impugned order is not only harsh and oppressive but against the aims and objectives of sections 10(23C) (vi)/ (via) and 139 of the Act.