45% profit from educational activities establishes profit motive of trust and exemption U/s. 11 cannot be allowed

IILM Foundation Vs. ADIT (ITAT Delhi) We find that after the profit and loss A/c is prepared according to normal business practice it is observed that the profit margin of the assessee is 44.6% for the asstt. year 06-07 and 48.43% for the asstt. year. 07-08. Such high rate of profit clearly goes to establish that the appellant is existing for the purpose of profit and not for the purpose of charity. We further note that the Hon’ble Supreme Court of India delivered its decision on August 12, 2005 in the case of P A Inamdar Vs State of Maharashtra AIR 2005 SC 3226/ [2005] SCC 537 a unanimous j...