Educational institution exemption under section 10(23C)(vi) is available despite society control and no separate PAN.

A school run solely for educational purposes and not for profit satisfied the statutory conditions for approval under section 10(23C)(vi). Filing the application in Form No. 56D under Rule 2CA(2) was treated as compliant, and the fact that the school was managed by a society or did not have a separate PAN did not defeat its status as an educational institution. The operative principle was that, where the statutory conditions are met, the institution may be treated as a distinct entity for exemption purposes under the Income-tax Act, 1961.

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Issues: Whether a school run as an educational institution, existing solely for educational purposes and not for profit, was entitled to approval and exemption under section 10(23C)(vi) despite being a unit of a society and not having a separate PAN.

Analysis: The application for approval was filed in Form No. 56D in accordance with Rule 2CA(2) of the Income Tax Rules, 1962. The decisive requirement under section 10(23C)(vi) is that the institution must exist solely for educational purposes and not for profit. The record showed that the assessee was running a school and there was no finding that it was functioning for profit. The fact that the school was managed by a society and did not have a separate PAN did not negate its character as an educational institution for the purpose of the exemption. The Tribunal relied on the principle that an educational institution is to be treated as a distinct entity for the purpose of section 10(23C) where the statutory conditions are satisfied.

Conclusion: The assessee was entitled to approval and exemption under section 10(23C)(vi) of the Income-tax Act, 1961.

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