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Benefit of section 10(23C)(v) cannot be denied merely because there are profits
Case Law Details
- Case Name
- Pinegrove International Charitable Trust Vs Union of India and others (Punjab and Haryana High Court at Chandigarh)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Punjab and Haryana HC
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S. 10(23C)(vi) provides that the income of any university or other educational institution existing solely for educational purposes and not for purposes of profit shall be exempt. The assessee was running a school solely for educational purposes and claimed exemption u/s 10 (23C) (vi).
The exemption was denied/ withdrawn on the ground that as the assessee had earned substantial profits year after year and had not made efforts to lower its fees, the profits were not incidental and the assessee existed for profits. On a writ petition filed by the assessee, HELD allowing the challenge:
(i) To dec...
Depriciation will not be included as part of legitimate expense while calculating the 15% surplus. But you can calculate the expenditure incurred by total capital expenditure during the year.
Q1.Will depreciation be included as part of legitimate expense while calculating 15% surplus ?
Q2.If Education Society has contributed Financialy to Kargil War, Gujrat Earthquake, Orphanages,will this be taken other than education and a debar for Sec10(23C)(vi)?
Q3.Can society be covered under 10(23)(vi) and Sec11 ie Charitable