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.”