M/S RAM LAL BHASIN PUBLIC SCHOOL,LUDHIANA vs. COMMSSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH

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ITA 699/ASR/2017Status: DisposedITAT Amritsar17 January 20198 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee school, existing solely for educational purposes and not for profit, is entitled to exemption under Section 10(23C)(vi) of the Act. The Tribunal referred to the provisions of Section 10(23C)(vi) which allows exemption to any university or other educational institution existing solely for educational purposes and not for purposes of profit, provided it is approved by the prescribed authority. It noted that it is not disputed that the assessee is a school affiliated with the Council for the Indian School Certificate of Examination (ISCE) and that the Department does not contend that the school exists for profit. The Tribunal relied on the ratio laid down by the Hon'ble Karnataka High Court in CIT and Another Vs Children Education Society (2013) 358 ITR 373, which held that educational institutions are separate entities, and their management by societies or trusts does not negate their independent status. The Tribunal set aside the impugned order and directed the CIT(E) to allow the exemption/approval claimed by the assessee. The issue of the assessee not having its own PAN was implicitly addressed by the reliance on the Karnataka High Court judgment which emphasizes the separate entity status of educational institutions.

What were the facts?

The assessee, M/s Ram Lal Bhasin Public School, filed an application in Form No. 56D for exemption under Section 10(23C)(vi) of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemptions) [CIT(E)] rejected the application. The CIT(E) noted that the school was run by 'Sanatam Dharma Paracharak Sabha', a society registered in 1914. The CIT(E) observed that the assessee had not claimed exemption under Section 10(23C)(iiiad) in the past and had not filed its own return of income, but the Sabha's return was filed. The CIT(E) held that an entity claiming exemption under Section 10(23C)(vi) must exist solely for educational purposes and not for profit, and that the assessee, not being a separately registered entity with its own PAN, did not qualify. The assessee appealed this order dated 29.09.2017.

What were the issues?

1. Whether the assessee school, M/s Ram Lal Bhasin Public School, qualifies for exemption under Section 10(23C)(vi) of the Income Tax Act, 1961, despite not having its own PAN and being part of a larger society. Assessee's contentions: The assessee argued that exemption under Section 10(23C)(vi) is for a University or Educational Institution, not a Trust or Society. It contended that it runs the school and previously claimed exemption under Section 10(23C)(iiiad) until AY 2015-16. For the current year, it filed Form No. 56D as per Rule 2CA(2), and no PAN is required for claiming exemption under Section 10(23C)(iv). It relied on the Karnataka High Court judgment in CIT Vs Children Education Society. Revenue's contentions: The Revenue, through the CIT(DR), strongly supported the impugned order passed by the CIT(E) and reiterated the observations made therein.

Which sections of the Income-tax Act were involved?

Section 10(23C)(vi),Section 10(23C)(iv)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Camp Bench at Jalandhar

Before: Shri. N.K. Saini & Shri. Ravish Sood

For Appellant: Shri Ashwani Kumar, CA &, Shri Vinay Shrivastav, CA
For Respondent: Smt. Parvinder Kaur, CIT D.R
Hearing: 15.01.2019Pronounced: 17.01.2019

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. आयकर आयु�त(अपील) / The CIT(A)- 4. आयकर आयु�त / CIT 5. DR, ITAT, Camp Bench, Jalandhar 6. गाड� फाईल / Guard file.

स�या�पत � त //True Copy// आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील�य अ�धकरण,/ITAT, Camp Bench, Jalandhar

P a g e | 8 ITA No. 699/Asr/2017 M/s Ram Lal Bhasin Public School, Distt. Ludhiana

Sr.No. Details Date Initials Designatio n 15.1.19 1 Draft dictated on Sr.PS/PS 16.1.19 2 Draft Placed before author Sr.PS/PS 3 Draft proposed & placed before the JM/AM Second Member 4 Draft discussed/approved by Second JM/AM Member 5 Approved Draft comes to the 17.1.19 Sr.PS/PS Sr.PS/PS 6 Kept for pronouncement on 17.1.19 Sr.PS/PS 7 File sent to the Bench Clerk Sr.PS/PS 17.1.19 8 Date on which the file goes to the Head clerk 9 Date on which file goes to the AR 10 Date of Dispatch of order

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