Case Law Details
Indian Institute Of Banking & Finance Vs CIT (ITAT Mumbai)
ITAT Mumbai held that denial of exemption under section 10(23C)(vi) of the Income Tax Act justified as assessee has been found to be not ‘existing’ solely for the purposes of education.
Facts- The assessee claiming itself to be an educational institution existing solely for educational purposes and not for the purpose of profit filed an application dated 24/10/2017 seeking exemption under section 10(23C)(vi) of the Act for the assessment year 2017-18.
Upon perusal of the aforesaid application and the details filed by the assessee, it was observed that the object of the assessee prima facie shows that the entire work of the institution is related to developing professionally qualified and competent bankers and financial professionals, to encourage innovation and creativity among finance professionals. Thus, no general public is being served with the services of the institution and the assessee is not imparting any formal education or normal schooling which shows that it does not exist solely for education. It was also observed that every year there is a huge surplus which indicates that the activities are conducted with the motive of profit.
Accordingly, vide show cause notice the learned CIT(E) asked the assessee to show cause as to how the assessee is eligible for registration under section 10(23C)(vi) of the Act. In response thereto, the assessee filed its detailed submissions.
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