Siddhartha Nautiyal ORDER
Siddhartha Nautiyal, Member (J)
1. This assessee's appeal for A.Y. 2017-18, arises from order of the Commissioner of Income Tax (Exemption), Ahmedabad dated 07-03-2018, in proceedings under section 10(23C)(vi) of the Income Tax Act, 1961; in short "the Act".
2. The assessee has raised following grounds of appeal:-
"1. Ld. learned CIT(Exemptions) has erred in law as well as on fact in rejecting approval u/s. 10(23C)(iv) of the Act on facts and circumstances of the case."
3. The brief facts of the case are that the assessee is a charitable trust registered with Assistant Charity Commissioner, Rajkot vide registration dated 01.04.1986. 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. However, the Commissioner of Income Tax (Exemptions), Ahmedabad observed that on perusal of the objects of the trust mentioned in the trust deed, it is seen that apart from providing educational services, the assessee trust, as per the stated objectives in the trust deed, is also engaged in providing medical facilities, social welfare, Social Security and other general activities. Therefore, from perusal of above objects, 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 non-educational 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. The CIT(Exemptions) held as below while passing the Order:
"The submission of the assessee trust has been carefully considered and found not convincing and therefore not acceptable in view of following facts. It would not be out of place to reproduced the provisions of section 10(23C)(vi) which reads as under.
"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"
In view of the above, the assessee has other non-educational objects as per the trust deed mentioned above. Therefore, the assessee has not fulfilled the condition laid down to proviso of section 10(23C)(vi) of the Act."
4. Before us, the counsel for the assessee submitted that the assessee trust had obtained registration under section 12A of the Act on 22.08.1986. The assessee also drew our attention that it is being audited for the past 20 years and audit report has been submitted as part of the paper book. The assessee submitted that though the terms of the trust deed cover activities other than educational activities, but the assessee trust never carried out any of activities other than educational activities. The counsel for assessee als........