Rewa (Sunil) Education Society, Indore v. CIT Examption Bhopal, Bhopal

IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH INDORE BEFORE HONBLE KUL BHARAT JUDICIAL MEMBER AND HONBLE MANISH BORAD ACCOUNTANT MEMBER ITA NO.866/IND/2018 REVENUE BY S HRI K.G. GOEL SR. DR ASSESSEE BY SHRI MANJ I T SACHDEVA CA DATE OF HEARING 1 9 . 1 1 .2019 DATE OF PRONOUNCEMENT 21 . 1 1 .2019 O R D E R PER MANISH BORAD AM THE ABOVE CAPTIONED APPEAL FILED AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST THE ORDERS OF LD. COMM ISSIONER OF INCOME TAX (EXEMPTION) (IN SHORT LD.CIT(A)] BHOP AL DATED 28.9.2018. 2. ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEALS ; M/S REVA (SUNIL) EDUCATION SOCIETY 101 ANURAG APARTMENT 69 ANOOP NAGAR INDORE VS. CIT(EXEMPTION) BHOPAL (APPELLANT) (RESPONDENT ) PAN NO. A A CAR4988D REVA (SUNIL) EDUCATIONAL SOCIETY INDORE ITA NO. 866/IND/18 2 1. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION) ERRED IN REJECTING THE APPLICATION MADE FOR APPROVAL UNDER SECTION 10( 23C)(VI) OF THE INCOME TAX ACT. 2. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION) REJECTED THE APPLICATION FOR APPROVAL UNDER SECTION 10(23C)(VI) JUST ON THE BASIS THAT REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX A CT HAS ALREADY GRANTED TO THE ASSESSEE. 3. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION) WITHOUT PINPOINTING ANY DEFECT IN THE OBJECTS OF THE ASSESS EE PROCEEDED TO THE REJECTION THE APPLICATION FILED FOR APPROVAL UNDER SECTION 10(23C)(VI) OF THE INCOME TAX ACT. 4. THE REJECTION OF APPLICATION IS UNLAWFUL AND NEE DS TO BE DELETED. 5. THE APPELLANT CRAVES LEAVE TO ADD ALTER AND FOR DE LETE ANY OF THE GROUNDS OF APPEAL. 3. BRIEF FACTS OF THE CASE AS CULLED OUT FROM THE R ECORDS ARE THAT THE ASSESSEE IS A EDUCATIONAL SOCIETY REGISTERED ON 29.9.2015 AND ENGAGED IN CHARITABLE ACTIVITIES AND ALSO RUNNING S CHOOL IN THE NAME OF SAKET INTERNATIONAL SCHOOL. THE MAIN OBJEC TS OF THE SOCIETY ARE AS FOLLOWS; (I) TO PROVIDE THE FACILITIES OF FIRST CLASS PUBLI C SCHOOL REVA (SUNIL) EDUCATIONAL SOCIETY INDORE ITA NO. 866/IND/18 3 (II) TO WORK FOR PROMOTION OF SCIENCE EDUCATION L ITERATURE OR FINE ART (III) TO WORK FOR FOUNDATION OR MAINTENANCE OF LIBR ARIES (IV) TOW WORK IN THE FIELD OF WATER CONSERVATION RAIN HARVESTING CREATING NEW WATER BODIES DEVELOPMENT OF RURAL URBAN WATER SUPPLY SYSTEM REHABILITATION OF WATER BODIES VILLAGE UPLIFTMENT AND DEVELOPMENT OF A MOD EL VILLAGE. (V) TO WORK IN THE FIELD OF EDUCATION AND TRAINING (VI) TO WORK IN THE FIELD OF ENVIRONMENT (VII) IN THE FIELD OF MAILA AND BAL VIKAS AND PANCH AYAT AND SAMAJ KALIAN AND ANCILLARY WORK TO OTHER SOCIAL WEL FARE ACTIVITIES. (VIII) TO DO ALL OR ANY OF THE ABOVE THINGS EITHER ALONE OR IN CONJUNCTION WITH OTHERS AND TO DO ALL OTHER SUCH TH INGS AS THE SOCIETY MAY CONSIDER NECESSARY INCIDENTAL O R CONDUCIVE TO THE ATTAINMENT OF THE ABOVE OBJECTS. 4. THE ASSESSEE WAS GRANTED REGISTRATION U/S 12A A OF THE ACT VIDE ORDER DATED 30.01.2017. ASSESSEE SOCIETY APPL IED FOR APPROVAL U/S 10(23C)(VI) IN FORM NO.56D ON 09.08.2017. DURI NG THE COURSE OF HEARING LD. CIT (EXEMPTION) NOTICED THAT AS PER THE BYE-LAWS THE OBJECT OF THE SOCIETY ARE NOT SOLELY FOR EDUCATIONA L PURPOSES AS MENTIONED IN OBJECT CLAUSE NO. (IV) (V) & (VI). L D. CIT (EXEMPTION) OBSERVED FOLLOWING IN THE IMPUGNED ORDER; REVA (SUNIL) EDUCATIONAL SOCIETY INDORE ITA NO. 866/IND/18 4 AS PER INCOME TAX ACT APPROVAL U/S 10(23C)(VI) ANY UNIVERSITY OR OTHER EDUCATIONAL INSTITUTION EXISTING SOLELY FOR EDUCATI ONAL PURPOSES AND NOT FOR PURPOSE OF PROFIT IS ENTITLED FOR APPROVAL U/S 10(2 3C)(VI) . THE ABOVE FACTS. HAVE BEEN BROUGHT TO THE KNOWLEDGE OF THE AR. IT IS SEEN THAT THE ASSESSEE HAS APPLIED BEFORE THE REGISTRAR OF FIRMS & SOCIETI ES TO AMEND THE OBJECTS. IT IS ALSO NOTICED THAT THE SOCIETY IS REGISTERED U /S 12AA VIDE ORDER DATED 30.1.2017. SINCE REGISTRATION U/S 12AA IS ALREADY G RANTED TO THE SOCIETY HE HAS BEEN ASKED TO FOR SEEKING APPROVAL U/S 10(23C)(VI) OF THE I T ACT BY 21.8.2018. 5. THEREAFTER ON 21.08.2018 ASSESSEE SOUGHT ADJOURNME NT TO FILE MORE INFORMATION BUT SINCE THE CASE WAS GETTING TIM E BARRED BY LIMITATION ON 31.03.2018 LD. CIT (EXEMPTION) PASSED ORDER DATED 29.8.2018 REJECTING THE APPLICATION U/S 10(23C)(VI) OF THE ACT. 6. AGGRIEVED ASSESSEE IS NOW IN APPEAL BEFORE THE T RIBUNAL. 7. LD. COUNSEL FOR THE ASSESSEE SUBMITTED AS FOLLOW S :- (1) REASONABLE OPPORTUNITY WAS NOT GRANTED TO FURNI SH VARIOUS DETAILS AND INFORMATION CALLED FOR BY LD. CIT (EXEM PTION). (2) LD. CIT (EXEMPTION) HAS NOT CONSIDERED THE CIR CULAR NO.14 OF 2015 ISSUED BY CENTRAL BOARD OF DIRECT TAXES DAT ED 17.8.2015 PRESCRIBING THAT SECTION 10(23C)(VI) OF T HE ACT DOES REVA (SUNIL) EDUCATIONAL SOCIETY INDORE ITA NO. 866/IND/18 5 NOT PRESCRIBE ANY STIPULATION WHICH MAKES REGISTRAT ION U/S 12AA OF THE ACT MANDATORY OR PRE CONDITION. (3) LD. CIT (EXEMPTION) HAS ALSO NOT CONSIDERED THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CAS E OF CIT V/S FRANSISCAN CLARIST SOCIETY (2014) 24 ITJ 329 (MP). (4) THE OBJECTS OF THE SOCIETY APART FROM RUNNING T HE SCHOOL ALSO INVOLVES EDUCATING STUDENTS ON VARIOUS ASPECTS RELATING TO WATER CONSERVATION RAIN HARVESTING VILLAGE UPL IFTMENT AND DEVELOPMENT OF A MODEL VILLAGE. 8. LD. COUNSEL FOR THE ASSESSEE THEREFORE REQUESTED THAT THE ISSUE RAISED IN THE APPEAL MAY BE RESTORED TO LD. CIT(EXE MPTION) FOR AFRESH ADJUDICATION OF THE APPLICATION OF THE ASSES SEE U/S 10(23C)(VI) OF THE ACT IN THE LIGHT OF THE JUDGMENT OF HON'BLE JURISDICTIONAL HIGH COURT THE CIRCULAR ISSUED BY C ENTRAL BOARD OF DIRECT TAXES AND OTHER REASONS MENTIONED HEREIN ABO VE. 9. PER CONTRA LD. DEPARTMENTAL REPRESENTATIVE SUPPO RTED THE ORDER OF LD. CIT (EXEMPTION) BUT DID NOT OPPOSE TO THE REQUEST OF THE LD. COUNSEL FOR THE ASSESSEE FOR SETTING ASIDE ALL THE MATTERS RAISED IN THIS APPEAL TO THE FILE OF LD. CIT (EXEMP TION). REVA (SUNIL) EDUCATIONAL SOCIETY INDORE ITA NO. 866/IND/18 6 10. WE HAVE HEARD RIVAL CONTENTION AND PERUSED THE RECORDS PLACED BEFORE US. THE ASSESSEE SOCIETY WAS REGISTE RED ON 29.09.2015 WITH THE FOLLOWING OBJECTS; (I) TO PROVIDE THE FACILITIES OF FIRST CLASS PUBLI C SCHOOL (II) TO WORK FOR PROMOTION OF SCIENCE EDUCATION L ITERATURE OR FINE ART (III) TO WORK FOR FOUNDATION OR MAINTENANCE OF LIBR ARIES (IV) TOW WORK IN THE FIELD OF WATER CONSERVATION RAIN HARVESTING CREATING NEW WATER BODIES DEVELOPMENT OF RURAL URBAN WATER SUPPLY SYSTEM REHABILITATION OF WATER BODIES VILLAGE UPLIFTMENT AND DEVELOPMENT OF A MOD EL VILLAGE. (V) TO WORK IN THE FIELD OF EDUCATION AND TRAINING (VI) TO WORK IN THE FIELD OF ENVIRONMENT (VII) IN THE FIELD OF MAHILA AND BAL VIKAS AND PANC HAYAT AND SAMAJ KALIAN AND ANCILLARY WORK TO OTHER SOCIAL WEL FARE ACTIVITIES. (VIII) TO DO ALL OR ANY OF THE ABOVE THINGS EITHER ALONE OR IN CONJUNCTION WITH OTHERS AND TO DO ALL OTHER SUCH TH INGS AS THE SOCIETY MAY CONSIDER NECESSARY INCIDENTAL O R CONDUCIVE TO THE ATTAINMENT OF THE ABOVE OBJECTS. 11. WE HAVE ALSO OBSERVED THAT THE ASSESSEE SOCIETY ENJOYS THE REGISTRATION U/S 12AA OF THE ACT GRANTED ON 30.1.20 17 WHICH ESTABLISHES THAT IT IS RUNNING FOR CHARITABLE ACTIV ITIES. AS REGARDS REVA (SUNIL) EDUCATIONAL SOCIETY INDORE ITA NO. 866/IND/18 7 APPLICATION U/S 10(23C)(VI) OF THE ACT DURING THE C OURSE OF HEARING ASSESSEE SOCIETY MADE FOLLOWING SUBMISSION BEFORE L D. CIT (EXEMPTION):- REG: REVA (SUNIL) EDUCATION SOCIETY INDORE PAN 'AA CAR4988D' SUB.: YOUR NOTICE NO. ITBA/EXMF/EXM17/2018-191/1010 275227(1) SIR WITH REFERENCE TO THE ABOVE WE HEREBY SUBMIT THE F OLLOWING INFO RM ATION AND PARTICULARS AS REQUIRED IN SERIATIM AS UNDER: _ 1. THAT BOOKS OF ACCOUNTS WITH S U PPORTING VOUCHERS ARE PRODUCED HEREWITH. 2. THAT REGARDING SOURCES OF FUNDS IT IS SUBMITTED T HAT THE ASSESSEE DID NOT RECEIVED ANY CORPUS FUND AND / OR OTHER FUND DURING THE FINANCIAL YEAR 2016- 2017. WITH REGARD TO CREDITORS AND LIABILITIES IT IS SUBMITTED THAT IT CONSIST OF ADVANCE FEES RECEIVED OF RS.10200/- WHICH IS FEES RECEIVED FROM THE STUDENTS OF THE SCHOOL RUNNED BY THE ASSESSEE IN AD VANCE FOR THE NEXT SESSION OF WHICH COPY OF LEDGER ACCOUNT ARE ENCLOSED HERE W ITH SUNDRY CREDITORS OF RS.8542981/- SUNDRY CREDITORS FOR EXPENSES OF RS. 1000874/- CAUTION MONEY OF RS. 2252000/- TDS PAYABLE OF RS.534239/- OF WHICH COPY OF L EDGER ACCOUNT ARE ENCLOSED H EREWITH AND OTHER CURRENT LIABILITIES AND PROVISION OF RS.1820865/-. OF WHICH COPIES LEDGER ACCOUNT AND COPIES OF CHALLANS IN RESPECT OF PAYMENT OF STATUTORY PROVISI ON ARE ENCLOSED HEREWITH. WITH REGARD TO FIXED ASSETS C O PY OF LEDGER ACCOUNT OF FIXED ASSETS AND SOME SAMPLE BILLS COPIES ARE ENCLOSED. WITH REGARD TO DE POSIT IT IS SUBMITTED THAT IT IS TERM DEP O SIT FOR CBSE MP BOARD AND COPY OF LEDGER ACCOUNT IS ENCLOSED HEREWITH. WITH REGARD TO LOANS AND ADVANCES IT IS SUBMITTED THAT IT REVA (SUNIL) EDUCATIONAL SOCIETY INDORE ITA NO. 866/IND/18 8 CONSISTS OF SUNDRY DEBTORS 13063844/- WHICH IS FEE S DUE FROM THE STUDENTS OF WHICH COPY OF LEDGER ACCOUNT IS ENCLOSED HEREWIT H ADVANCE TO SUPPLIERS OF RS. 190510/- AND TDS RECEIVABLE OF RS.41201/- OF WHICH DETAILS ARE ENCLOSED HEREWITH. 3.COPY OF DEED OF THE ASSESSEE SOCIETY IS ENCLOSED HEREWITH AND ORIGINAL IS PRODUC ED FOR VERIFICATION. 4. THAT THE ASSESSEE IS RUNNING SCHOOL IN THE NAME SAKET INTERNATIONAL SCHOOL H HAS GOT PERMISSION FROM CBSE AND M.P. BOARD TO RU N CLASSES FROM NURS ERY TO 9 TH CLASS. HOWEVER THE ASSESSEE IS RUNNING CLASSES FR OM NURSERY TO EIGHT CLASS AS OF NOW. AND THE ASSESSEE CONDUCTS SPORTS A ND OTHER RELATED ACT IVITIES. THE DATE OF COMMENCEMENT IS 01.06.2016. 5.THAT YEAR WISE DETAILS OF DEPOSITS/LOAN! ADVANCES GIVEN DURING THE YEAR 2015-16 TO 2016-17 IS ENCLOSED HEREWITH. THAT NO LO AN HAS BEEN GIVEN BY THE ASSESSEE AND ALSO NO INTEREST HAS BEEN CHARGED BY T HE ASSESSEE. DETAILS AND C OPIES OF LEDGER ACCOUNT ARE ENCLOSED HEREWITH. 6. THAT CONSOLIDATED CHART OF PROFITABILITY IN THE FORMAT AS REQUIRED AND DETAILS ARE ENCLOSED HEREWITH. 7. THAT THERE IS FIXED DEPOSIT HELD WITH THE BANK B Y THE ASSESSEE AND DETAILS CHART ARE ENCLOSED HEREWITH. 8. (A) AND (B). THAT THE ASSESSEE HAS NOT ENTERED FOR THE F.Y. 2015-16 TO 2016- 17 WITH MEMBERS/OFFICE BEARERS/FOUNDER MEMBERS AND PERSONS RELATED TO THEM. 9. THAT THE DETAILS OF THE BUSINESS CONCERN WHERE THE FOUNDER MEMBERS OR OFFICE BEARERS ARE EITHER PROPRIETOR OR PARTNER OR DIRECTOR OR HAVING SUBSTANTIAL INTEREST IS ENCLOSED HEREWITH. AND THE ASSESSEE HAS NOT ENTERED ANY TRANSACTIONS WITH SUCH CONCERNS. REVA (SUNIL) EDUCATIONAL SOCIETY INDORE ITA NO. 866/IND/18 9 10. THAT THE ASSESSEE HAS NOT RECEIVED ANY DONATIONS D URING THE PERIOD 2015- 16 TO 2016-17 AND THEREFORE NOT APPLICABLE. THAT TH E FEES STRUCTURE OF THE SCHOOL OPERATED BY THE ASSESSEE IS ENCLOSED HEREW ITH . 11. THAT THE DETAILS OF THE STUDENT GIVING NAME OF THE STUDENT FATHER'S NAME ADDRESS WITH SUMMARY GIVING NUMBER OF STUDENT'S CLA SS WISE IS ENCLOSED HEREWITH AND THERE WAS NO STUDENT UNDER RTE AT THAT TIME. 12. THAT IN RESPECT OF LEASE RENT PAID OF RS. 480000/- PER MONTH OF THE PROPERTY SITUATED AT REVENUE AREA ANJAD DIST. BARW ANI TAKEN ON LEASE RENT IT IS SUBMITTED THAT THE SCHOOL IS SITUATED I N ANJAD DIST. BARWANI WHICH IS ONE OF THE POSH AREAS OF THE BARWANI DISTRICT AN D LEASE RENT PAID IS IN ACCORDANCE AS PER THE MARKET RATE OF THE AREA. THE SIZE OF THE PROPERTY TAKEN ON RENT IS 3.50 ACRES. THE PAYMENT OF THE LEA SE RENT IS MADE THROUGH THE BANKING CHANNEL AND TDS IS MADE BY THE ASSESSEE ON - ~ LEASE RENT PAID. THE LEASE RENT INCOME IS SHOWN BY THE OWNERS OF THE PROPERTY IN THEIR INCOME TAX RETURN. COPY OF THE LEASE RENT AGREEMENT IS ALREADY SUBMITTED WITH EARLIER SUBMISSION. 13. THAT IN RESPECT OF AMENDMENT OF BYE L AWS IT IS SU B MITTED THAT ASSESSEE CAS E APPLIED FOR THE AMENDMENT OF BYE LAWS IN THE OFFIC E OF REGISTRAR OF FIRMS AND S O CIETY AND AS SOON AS THE AMENDED COPY OF BYE LAWS I S R ECEIVED THE SAME WOULD BE SUBMITTED. COPY OF THE APPLICATION FI LED BEFORE THE REGISTRAR OF FIRMS AND SOCIETY OFFICE IS ENCLOSED HEREWITH. 14. THAT IN RESPECT OF JUSTIFICATION OF FIXED ASSET S IT IS SUBMITTED THAT THE ASSESSEE HAS TAKEN LAND ON LEASE RENT AND CONSTRUCT ED BUILDING FOR THE PURPOSE OF RUNNING SCHOOL AND FOR IT THE ASSESSEE M ADE SCHOOL BUILDING} OTHER BUILDING THE ROOMS FOR THE CLASSES AND THESE WERE C APITALIZED AND SHOWN UNDER FIXED ASSETS UNDER BU IL DING CONSTRUCTION. COPIES OF THE BILLS OF THE ADDITION IS ENCLOSING HEREWITH. REVA (SUNIL) EDUCATIONAL SOCIETY INDORE ITA NO. 866/IND/18 10 15. THAT PHOTOGRAPHS OF THE BOTH THE BUILDING PREMI SES WHERE SCHOOL IS OPERATED BY THE ASSESSEE ARE ENCLOSED HEREWITH. WE TRUST ABOVE WOULD SUFFICE. 12. AFTER RECEIVING THE ABOVE SUBMISSION LD. CIT(EX EMPTION) IN ITS PARA-3 OF THE ORDER DATED 29.08.2018 GAVE A FINDIN G THAT SINCE THE ASSESSEE IS ALREADY GRANTED REGISTRATION U/S 12AA O F THE ACT WHAT IS THE JUSTIFICATION FOR SEEKING THE APPROVAL U/S 10(2 3C)(VI) OF THE ACT. THIS FINDING OF LD. CIT (EXEMPTION) SHOWS THAT IN H IS VIEW THERE WAS NO NEED TO SUBMIT APPLICATION U/S 10(23C)(VI) OF TH E ACT WHEN THE ASSESSEE ALREADY HAVE REGISTRATION U/S 12AA OF THE ACT. WHETHER THIS VIEW OF THE LD. CIT (EXEMPTION) IS IN ACCORDAN CE WITH LAW CORRECT NEEDS TO BE ADDRESSED. WE OBSERVE THAT CENTRAL BOARD OF DIRECT TAXES VIDE CIRCULAR NO.14 OF 2015 DATED 17.8 .2015 WITH THE SUBJECT OF CLARIFICATION ON CERTAIN ISSUES RELATED TO GRANT OF APPROVAL IN CASE OF SECTION 10(23C(VI) OF THE ACT CLARIFIED ON THE ISSUE ABOUT THE NECESSITY FOR REGISTRATION U/S 12AA WHILE SEEKING APPROVAL/CLAIMING EXEMPTION U/S 10(23C)(VI) OF THE ACT (WHICH IS THE EXACT CASE OF THE ASSESSEE). THE RELEVANT PORT ION OF THE CIRCULAR DEALING WITH THIS ISSUE IS REPRODUCED BELOW:- REVA (SUNIL) EDUCATIONAL SOCIETY INDORE ITA NO. 866/IND/18 11 2. NECESSITY FOR REGISTRATION U/S 12AA WHILE SEEKIN G APPROVAL/CLAIMING EXEMPTION U/S 10(23C)(VI) 2.1 SECTION 10(23C)(VI) DOES NOT PRESCRIBE ANY STIPULATION WHICH MAKES REGISTRATION U/S 12AA A MANDATORY PRE OR POST CONDITION IN FACT PROVISIONS OF SECTION 11 AND 10(23C) ARE TWO PARALLEL REGIMES AND OPERATE INDEPENDENTLY IN THEIR RESPECTIVE REALM S ALTHOUGH THE COMPLIANCE CRITERIA MAY BE COMMON TO BOTH. HENCE OB TAINING PRIOR REGISTRATION BEFORE GRANTING APPROVAL U/S 10C23E) C ANNOT HE INSISTED UPON. . 2.2 HOWEVER IN CASE OF A TRUST OR AN INSTITUTION H AVING OBTAINED REGISTRATION U/S 12AA AS WELL AS APPROVAL U/S L 0 (23C)(VI) IF REGISTRATION IS WITHDRAWN AT SOME POINT OF TIME CLU E TO CERTAIN ADVERSE FINDINGS THE WITHDRAWAL OF APPROVAL U/S 10 (23C)(VI) SHALL NOT AUTOMATIC BUT WILL DEPEND UPON WHETHER THESE AD VERSE FINDINGS ALSO IMPACT THE CONDITIONS NECESSARY TO KEEP APPROV AL U/S 1 O(23C)(VI) ALIVE. 13. HONBLE JURISDICTIONAL HIGH COURT IN THE CASE O F CIT V. FRANCISCAN CLARIST SOCIETY (SUPRA) HELD THAT WITHOUT CONSIDERING THE ACTUAL ACTIVITIES UNDERTAKEN BY THE SOCIETY THE EXE MPTION CANNOT BE DENIED MERELY RELYING ON THE BYE-LAWS. 14. EXAMINING THE FACTS OF THE INSTANT CASE IN THE LIGHT OF THE ABOVE JUDGMENT AS WELL AS CENTRAL BOARD OF DIRECT T AXES CIRCULAR NO.14 OF 2015 DATED 17.8.2015 WE OBSERVE THAT THE ASSESSEE REVA (SUNIL) EDUCATIONAL SOCIETY INDORE ITA NO. 866/IND/18 12 SOCIETY IS HAVING THE OBJECT BOTH IN THE NATURE OF PERFORMING CHARITABLE ACTIVITIES AND ALSO RUNNING FOR EDUCATIO NAL PURPOSE WITHOUT ANY PURPOSE OF EARNING PROFITS. CLAIMING EXEMPTION FOR THE PROFITS EARNED FROM PERFORMING EDUCATIONAL ACTIVITI ES IS PROVIDED IN SECTION 10(23C)(VI) OF THE ACT AND THE BENEFIT OF C LAIM OF EXEMPTION FOR RECEIPTS/INCOME FROM CHARITABLE ACTIVITIES IS P ROVIDED U/S 11 OF THE ACT. FOR GETTING BOTH THE EXEMPTIONS ASSESSEE NEEDS TO BE SEPARATELY REGISTERED U/S 10(23C)(VI) OF THE ACT AN D REGISTRATION U/S 12AA OF THE ACT. BOTH THE PROVISIONS WORK INDEPEND ENTLY AND THERE IS NO PROVISION OF LAW WHICH SHOWS THAT IF THE ASSE SSEE IS REGISTERED U/S 12AA OF THE ACT IT CANNOT BE GRANTED CLAIM U/S 10(23C)(VI) OF THE ACT OR VICE VERSA. LD. CIT (EXEMPTION) SHOULD HAVE FOCUSED ON EXAMINING THE ACTIVITIES UNDERTAKEN BY THE ASSESSEE AND IF ASSESSEE SOCIETY FULFIL THE CONDITIONS FOR GETTING THE REGIS TRATION U/S 10(23C)(VI) OF THE ACT IT SHOULD NOT BE DENIED MERE LY BECAUSE THE ASSESSEE SOCIETY ENJOYS REGISTRATION U/S 12AA OF TH E ACT. 15. WE THEREFORE IN THE GIVEN FACTS AND CIRCUMSTAN CES OF THE CASE AND IN VIEW OF THE DISCUSSIONS HEREIN ABOVE SET ASI DE THE ISSUE OF APPROVAL U/S 10(23C)(VI) OF THE ACT TO LD. CIT (EXE MPTION) FOR AFRESH REVA (SUNIL) EDUCATIONAL SOCIETY INDORE ITA NO. 866/IND/18 13 EXAMINATION AFTER GIVING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AS PER THE TERMS INDICATED ABOVE. 16. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. THE ORDER PRONOUNCED IN THE OPEN COURT ON 21.11.20 19. SD/- SD/- ( KUL BHARAT) (MANISH BOR AD) JUDICIAL MEMBER ACCOUNTANT MEMBE R / DATED : 21NOVEMBER 2019 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR ITAT INDORE/GUARD FILE. BY ORDER ASSTT.REGISTRAR I.T.A.T. INDORE