Approval u/s 10(23C)(vi) cannot be denied on the ground that the aims and object of the trust include several clauses which are not for the purposes of education

ST. MARY’S EDUCATION TRUST vs. COMMISSIONER OF INCOME TAX (EXEMPTION)
 ITAT, AMRITSAR BENCH

 Exemption under s. 10(23C)(vi)—Educational institution—Trust solely carrying on educational activities vis-a-vis other—Objects—Applicant trust has filed an affidavit through its managing director deposing that the trust was created with the object to educate the public by establishing school and professional and technical colleges and other educational institutions for such educational purpose and the trust only deals in educational services and is not carrying on any other activities—Therefore, approval under s. 10(23C)(vi) cannot be denied to it on the ground that the aims and object of the applicant trust include several clauses which are not for the purposes of education—As regards the competent authority before whom the application for approval is maintainable, in view of Notification No. 52 of 2014, dt. 22nd Oct., 2014, all classes of persons assessed or assessable by an IT authorities in the States of Jammu and Kashmir, Himachal Pradesh, Punjab, Haryana and Union Territory of Chandigarh, can be subjected to CIT (Exemptions) for appropriate approval—It is apparent from the documents on record that the assessee-trust has been assessed regularly by the ITO, at Pathankot since asst. yr. 2011-12 and the school which is run by the trust is also approved in Punjab state and situated within the jurisdiction of IT Department, at Pathankot—In the application, the applicant trust has mentioned that its administrative officer is located in Pathankot—As per note No. 1 in Form No. 56D, the application for grant of exemption under ss. 10(23C)(vi) and (via) can be filed before the CIT or Director of IT (Exemptions) having jurisdiction over the university or other educational institution or hospital or other medical institution—Therefore, in view of the said notification the jurisdiction to grant approval under s. 10(23C)(vi) vests with the CIT(Exemptions), Chandigarh, notwithstanding the fact that the assessee-rust is having its registered officer in Chennai and it has secured registration under s. 12A from the authorities at Chennai—CIT(Exemption) has not given any opportunity to the applicant trust either to establish its case or to substantiate the documents relied upon by the applicant—Since reasonable opportunity is mandatory before declining the approval, impugned order is set aside on this aspect also, and the case is remanded back to the CIT(Exemptions) to decide the same afresh