- (1.) The writ petition seeks to impugn the legality of an order passed by the Chief Commissioner of Income Tax, Ghaziabad on 10/11 October 2013 denying to the petitioner an exemption under Section 10 (23C) (vi) of the Income Tax Act, 1961.
(2.) The petitioner is stated to have established an educational institution called Ch. Natthu Singh Yadav Mahavidyalaya in a rural segment situated at Dihuli in Barnahal, District Mainpuri. After obtaining the recognition of the National Council for Teacher Education (NCTE) for running the B Ed degree course, affiliation was obtained from the Dr Bhim Rao Ambedkar University, Agra. Apart from the B Ed course, the institution imparts education leading to the conferment of B A, B Sc & M Sc degrees. The first academic session commenced in 2004 - 05. Since receipts exceeded the threshold limit of Rupees one crore, an application under Section 10 (23C) (vi) was filed before the Chief Commissioner, Income Tax, Ghaziabad on 30 September 2009. The application was rejected on 31 August 2010, which led to the filing of an earlier writ petition (Writ Petition No. 1714 of 2010). In the interregnum, the petitioner filed an application for registration under Section 12AA which was allowed by the Commissioner of Income Tax, Aligarh by an order dated 27 June 2011 read with a subsequent order dated 26 July 2011 effective from assessment year 2011-12. The earlier writ petition was allowed by an order of the Division Bench dated 4 July 2013 and while quashing the order passed by the Chief Commissioner of Income Tax, proceedings were remitted back to the authority for a fresh decision in accordance with law. On remand, the application has been rejected by the impugned order dated 10 October 2013. The only ground on which the application has been rejected is that under clause (6) of the Memorandum, the institution is required to impart training for technical, industrial, business and medical education free of cost and to enable the unemployed to obtain self-employment. However, it has been found that the petitioner has charged fees for the B Ed course which would violate the objects as stated in clause (6) of the memorandum.
(3.) The exemption provision of Section 10(23C) (vi) of the Income Tax Act, 1961 refers to the following: "(vi) any university or other educational institution existing solely for educational purposes and not for purposes of profit, other than those mentioned in sub-clause (iiiab) or sub-clause (iiiad) and which may be approved by the prescribed authority; or";