Exemption for charitable educational and hospital institutions depends on use of surplus for institutional purposes, not private diversion. Income of educational institutions and hospitals is exempt under 10(22) and 10(22A) only if they exist solely for educational or philanthropic purposes and not for profit; a year end surplus does not bar exemption provided it cannot be diverted for personal use and is applied to the institution's educational or philanthropic objects, otherwise exemption fails and applicability of the trust/income application regime should be examined.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Exemption for charitable educational and hospital institutions depends on use of surplus for institutional purposes, not private diversion.
Income of educational institutions and hospitals is exempt under 10(22) and 10(22A) only if they exist solely for educational or philanthropic purposes and not for profit; a year end surplus does not bar exemption provided it cannot be diverted for personal use and is applied to the institution's educational or philanthropic objects, otherwise exemption fails and applicability of the trust/income application regime should be examined.
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