Case Law Details
Dismissing the appeal filled by the Revenue and the cross appeal of the assessee, this Court HELD : 1.1. An educational society or Trust or other similar body running an educational institution solely for educational purposes and not for purposes of profits could be regarded as `other educational institution’ coming within Section 10(22) of the Act. [954-F] Katra Education Society v. Income Tax Officer, 111 ITR 420 (All); CIT v. Doon Foundation, 154 ITR 208 (Cal) and Agarwal Shiksha Samiti Trust v. CIT, 168 ITR 751 (Raj), approved. 1.2. On facts, the assessee society comes within the scope of `other educational institution’ under section 10(22) of the Act and was not only a financing body. The sole purpose of the existence of the Assessee society was to impart education at the levels of schools and colleges. The object was accomplished by establishing, running, managing or assisting colleges, schools or other educational institutions solely for educational purposes and in that regard, raise or collect funds, donations, gifts etc. [953-F] 2. As regard the assessee’s appeals, the High Court rightly observed that applicability of Section 10(22) is to be evaluated or investigated in each year to ascertain whether the institution existed during the relevant year solely for educational purposes and not for purposes of profits. In the event of profits arising, the income would be exempt as it was incidental to the main purpose of education. [955-F] Governing Body of Rangaraya Medical College v. ITO, 117 ITR 284 (AP) and Secondary Board of Education v. ITO, 86 ITR 408 (Orissa), ap-proved.
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 2578-80 of 1979 Etc.
Subject-Income Tax Act, 1961-Section 10(22)-
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