- (1.) BY means of this petition, the petitioner has prayed for the quashing of the order dated 16th October, 2008 passed by the Chief Commissioner of Income Tax, Allahabad rejecting the application of the petitioner for exemption under Section 10(23C)(vi) of the Income Tax Act, 1961 (hereinafter referred to as Act).
(2.) THE facts leading to the filing of the writ petition is that the petitioner is a trust and on account of its charitable activities has been registered under Section 12AA of the Act. The trust has various objects and one of the objects is education. Based on this object, the petitioner is running and managing two educational institutions. Since the institution was existing solely for educational purposes and not for the purposes of profit. The petitioner applied for exemption under Section 10(23C)(vi) of the Act for the assessment year 2005 -06. The said application was rejected by the Chief Commissioner of Income Tax by the impugned order dated 16th August, 2008 against which the present writ petition has been filed.
(3.) THE Chief Commissioner has rejected the application on various grounds, namely, that the objects mentioned in the will for which the trust was to be created has been altered in the objects of the trust and, whereas, under the will, educational institution was a residuary clause, under the trust deed, education has become the main clause. Further, the trust has various objects and that education was one of the objects. The Chief Commissioner found that the other objects of the trust did not directly relate to education and, consequently, was of the opinion that the trust was not existing solely for educational purposes as envisaged under Section 10(23C)(vi) of the Act and, accordingly, rejected the application. We have heard at length Sri Praveen Kumar, the learned counsel for the petitioner and Sri Dhananjay Awasthi, the learned counsel for the respondent.;