32 Educational institution – Exemption u/s. 10(23C)(vi) – School run by assessee having only up to kindergarten class – Provision of Right to Education Act applicable to school imparting education from class 1 to class 8 – Provision not applicable to assesee – Assessee cannot be denied exemption for failure to comply with that Act

CIT(Exemption) vs. Infant Jesus Education Society; 404 ITR 85 (P&H):

Date of order: 14^th July, 2017:

A. Y.: 2013-14:

Section 10(23C)(vi) of I. T. Act 1961

The assesee was a society registered under the Societies Registration Act, 1860. The Society was running a school since the year 2006 and the school was from class play to kindergarten class. For the A. Y. 2013-14, the assessee applied for grant of exemption u/s. 10(23C)(vi) of the Income-tax Act, 1961. The Principal Chief Commissioner rejected the application primarily on the ground that the assessee had not been complying with the provisions of Right of Children to Free and Compulsory Education Act, 2009.

The Tribunal held that the provisions of the 2009 Act were not applicable to school being run by the assessee and directed the Principal Chief Commissioner to grant approval for exemption to the assessee.

On appeal by the Revenue, the Punjab and Haryana High Court upheld the decision of the Tribunal and held as under:

“i) The school was only up to kindergarten class. No doubt was raised with regard to the genuineness of the activities of the society. The provisions of the 2009 Act were applicable to schools imparting education from class 1 to class 8 and hence the school of the assessee was not to be governed by the 2009 Act.

ii) The Department failed to show that the provisions of the 2009 Act were applicable to the assessee or the findings recorded by the Tribunal were in any way illegal or perverse warranting interference. No substantial question of law arose. The appeal stands dismissed.”