Neo Gurishi Educational Society (Registered) vs Director of Income Tax

The petitioner is a society registered under the Societies Registration Act and is engaged in educational activities. It is running a Senior

Secondary school in the name of ""Neo Convent Senior Secondary School"" at Janakpuri from its inception in the year 1975. On 10.8.1989

petitioner''s society was also registered with the Income Tax Department u/s 12A(a) of the Income Tax Act. It has been getting benefit of Section

10(23C)(vi) of the said Act ever since the said provision was inserted in the Income Tax Act by Finance (No.2) Act, 1998. However for the year

2007-08 the request of the petitioner to give exemption u/s 10(23C)(vi) has been rejected on the ground that the object clause of the petitioner

society also, besides education, hay some other objects and therefore, the petitioner society does not exist solely for educational purposes. One of

the other objects mentioned is ""to uplift the weaker sections of Sikh community and promote Sikh culture"". Submission of the petitioner''s society in

this petition, is that though aforesaid object is mentioned in the objects clause of the society, till date only activity in which the petitioner''s society

has engaged is only educational activity which is managing the aforesaid school and is not engaged in any other activity. Mr. Sanat Kumar placed

on record a copy of order dated 24th March, 2009 passed by the Director General of Income Tax (Exemptions) Delhi, in respect of the

petitioner''s society for the assessment year 2008-09 as per which exemption u/s 10(23-C)(vi) has been granted subject to certain conditions.

A perusal of the said order would show that the petitioner society had filed an affidavit dated 25th April, 2009 inter alia stating that the society is

doing solely the educational activity till date and will not undertake any other activity in future as well. Undertaking is also given to the fact that

Clauses B, D and E of the memorandum of association would be deleted/amended within a period of six months. In view of the aforesaid, we

dispose of this writ petition with a direction to the Director General of Income Tax (Exemptions) Delhi to pass appropriate orders by granting

exemption to the petitioner under the aforesaid provision of section 10(23C)(vi) in respect of assessment year 2007-08 as well on the same terms

and conditions as is granted for the assessment year 2008-2009.