Case Law Details
Queen’s Educational Society Vs CIT (Supreme Court of India)
SC Held that Law common to Section 10(23C) (iiiad) and (vi) may be summed up as follows:
♦ Where an educational institution carries on the activity of education primarily for educating persons, the fact that it makes a surplus does not lead to the conclusion that it ceases to exist solely for educational purposes and becomes an institution for the purpose of making profit.
♦ The predominant object test must be applied – the purpose of education should not be submerged by a profit making motive.
♦ A distinction must be drawn between the making of a surplus and an institution being carried on “for profit”. No inference arises that merely because imparting education results in making a profit, it becomes an activity for profit.
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It is a good decision and control over the institution which benefited and created assets in the name of charity or non profit organisation.