- (1.) HEARD learned counsel for the appellant. This appeal is filed by the Deputy Commissioner of Income-tax, Central Circle-2, Jaipur, under Section 260A of the Income-tax Act, 1961 (hereinafter to be called "the Act"), aggrieved by the order dated October 26, 1998, passed by the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, in Income-tax Appeal No. 1189/JP of 1994, for the assessment year 1990-91, by which, the learned Income-tax Appellate Tribunal has held that Cosmopolitan Educational Society, Jaipur (the assessee), is entitled for claiming the benefit of exemption under Section 10(22) of the Act.
(2.) LEARNED counsel for the appellant contended that this appeal raises substantial questions of law, namely, (1) whether the assessee-society is entitied for claiming exemption under the provisions of Section 10(22) of the Act, even if its funds are being misutilised by the members of the society. (2) whether the relief under Section 10(22) can well be given to the asses-see-society when its property is used for personal gain, by its members and surplus funds or profits are invested in creating personal properties. The assessing authority refused to grant exemption under Section 10(22) of the Act, finding that the income of the funds of the society, was not used for the educational purposes of the society and that the funds were misutilised by the members of the society. The assessee filed the Income-tax Appeal No. 82 of 1993-94, for the assessment year 1990-91. The appellate authority, i.e., the Commissioner of the Income-tax (Appeals), did not agree with the assessing authority and held that the assessee was entitled for exemption under Section 10(22) of the Act. The Department aggrieved by the order of the Commissioner of Income-tax (Appeals), went before the Tribunal. The Tribunal also confirmed the order of the Commissioner of Income-tax (Appeals), based on the findings of facts recorded. Hence, this appeal is filed. Learned counsel for the appellant urged that the Commissioner of Income-tax (Appeals) as well as the Tribunal committed an error in not taking note of the fact that the funds of the assessee-society were misutilised by the members of the society and not for the purposes of education ; hence, the assessee ought not to have been given exemption with regard to the income under Section 10(22) of the Act. We have considered the submissions of learned counsel for the appellant. The Commissioner of Income-tax (Appeals) has recorded a finding of fact ; it was not known that any part of the income of the assessee-society was misutilised. For so saying, the appellate authority referred to the balance-sheet. The appellate authority further noticed that the assessee-society is a registered society under the Rajasthan Societies Act and that it is also recognised by the CBSE ; if there was any misutilisation or mismanagement, action could be taken against the members of the society, but, from the records and facts, it is not possible to say that any amount of funds of the society was not utilised for educational purposes. The Tribunal concurred with this finding of fact. The authorities also referred to a decision of the apex court, in the case of Aditnar Educational Institution v. Addl. CIT [1997] 224 ITR 310, in which, it is held that an overall view is to be taken and without being hypertechnical in granting exemption under Section 10(22) of the Act, which include the objects of the society.
(3.) HAVING regard to the finding of fact recorded, it is not possible for us to say that any substantial question of law arises for consideration, in this appeal, so as to admit it. Hence, the appeal is rejected.;