Exemption U/s. 10(23C)(vi) cannot be denied merely because there is a surplus

Delhi HC Rules Exemption Under Section 10(23C)(vi) of the Income Tax Act, 1961 cannot be denied merely because there is a surplus.

Delhi High Court held that It is not possible to carry on educational activity in such a way that the expenditure exactly balances the income and there is no resultant profit, for, to achieve this, would not only be difficult of practical realization but would reflect unsound principles of management. The assumption that for exemption there should not be any surplus and if it is otherwise the institution society exists for profit and not charity is not justified.

Delhi High Court

W.P.(C) 1254/2010

St. Lawrence Educational Society (Regd.) & Another

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