Case Law Details
Sanskar Tirth Educational and Charitable Trust Vs CIT (ITAT Rajkot)
Merely because one of the clauses of trust deed of assessee trust provided that trust could carry on other businesses as decided by trustees, it would not per se disentitle trust from being considered for registration under section 10(23C)(vi) of the Act.
Facts-
The assessee is a charitable trust registered with Assistant Charity Commissioner, Rajkot vide registration dated 01.04.19 86. The trust is also registered under section 12A of the Act. The assessee trust filed an application dated 30.03.2017 and sought an approval under section 10(23C)(vi) of the Act. According to assessee, the trust is carrying out educational activities through its various institutions like primary schools, secondary and higher secondary schools.
The Commissioner of Income Tax (Exemptions) observed that assessee trust is not existing solely for educational purposes but also purposes other than educational as evident from the objects of the trust deed. The provisions of section 10(23C)(vi) is applicable only in case of university or other educational institution existing solely for educational purposes. Therefore, since the assessee had other noneducational objects as per the trust deed, the CIT(Exemptions) held that assessee has not fulfilled the conditions laid down in section 10(23C)(vi) of the Act and hence rejected the application of the assessee trust for seeking approval under the above section.
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