IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI K.M. ROY, ACCOUNTANT, MEMBER ITA no.538 and 615/Nag./2024 (Assessment Year : N.A.)

G.H.R. Educational Foundation T–8, Shradha House, 345 Kingsway ……………. Appellant Nagpur 440 001 PAN – AALCG0443P v/s Commissioner of Income Tax ……………. Respondent Exemption, Pune Assessee by : Shri Mukesh Agrawal Revenue by : Shri Sandipkumar Salunke Date of Hearing – 04/02/2025 Date of Order – 10/02/2025

O R D E R

PER V. DURGA RAO, J.M.

The captioned appeal by the assessee in ITA no.538/Nag./2024, is emanating from the impugned order dated 30/08/2024, passed by the learned Commissioner of Income Tax (Exemption), Pune, [“learned CIT(E)”] rejecting the approval under section 10(23C)(vi) of the Income Tax Act, 1961 ("the Act")t.

2. In its appeal, the assessee has raised following grounds:–

“1. On the facts and circumstances of the case and in law, the learned CIT Exemption, Pune has grossly erred in rejecting assessee's application for approval u/s 10(23C)(vi) of I T Act. The order passed by CIT Appeals is illegal, invalid and against the principles of natural justice.

2. On the facts and circumstances of the case and in law, the learned CIT Exemption, Pune ought to have granted approval under section 10(23C) (vi) of IT Act to the Appellant as the Appellant has duly complied with all the conditions as prescribed under law for grant of approval under section 10(23C)

(vi) of the Act.

3. On the facts and circumstances of the case and in law, the learned CIT Exemption, Pune has grossly erred in holding that the objects of the appellant are not solely and/or incidental to educational activities.

4. The Appellant craves leave to add, amend, alter, vary and / or withdraw any or all the above grounds of Appeal.”

3. Facts in Brief:– The assessee was incorporated on 18/02/2024 under section 8 of the Companies Act with the main object "To convert existing Society "G.H.R. Education Foundation" having registration no.MAH/830/04 dated 21/12/2004 (PAN: AAATG7303E) as going concern under Section 366 to 374 of Part-1, Chapter-XXI of the Companies Act, 2013 r/w with the Companies [Authorised to be Register] Rules, 2014 as amended from time to time, on its incorporation under the Companies Act, 2013 to "G.H.R. Education Foundation", a Section 8 Company, limited by guarantee and not having share capital under the Companies Act, 2013. The predecessor society was an approved educational institution under section 10(23C(vi) of the Act having registration under section 80G of the Act. Details of previous approval under section 10(23C)(vi) of the Act are as under:–

Sr.

Particulars Section Approval No. Approval Date no.

PN/DGIT(Inv.)/GH Prior to REF

1. 10(23C)(vi) 28/04/2009

01/04/2021 Soc/10(23C)/2009–

10/28/04/2009

2. After 01/04/2021 10(23C)(vi) AATG7303EC20214 28/05/2021 The assessee runs following Schools and Colleges:–

Since the status of assessee changed from society to Section 8 Company, it had filed an application in Form no.56D, on 11/04/2008, seeking grant of fresh approval under section 10(23C)(vi) of the Income tax Act, 1961 (“the Act”).

4. Before the learned CIT(E), the assessee furnished various details and documents in support of its claim. However, the learned CIT(E) considering the same, rejected the application of the assessee by following certain judicial pronouncements and held that the assessee is not found eligible for approval under section 10(23C)(vi) of the Act by observing as under:–

“3. The information / details were called for under the provisions of sub-clause (a) of clause (ii) of second proviso to section 10(23C) of the Income Tax Act, 1961. These are the basic details required to ascertain the validity of the application and the overall nature of the activities of the assessee and are directly relevant to the present proceedings. The assessee was requested to submit its compliance by 17/05/2024. The assessee was specifically informed that in the event of