TaxTMI 
TaxTMI 
2014 (2) TMI 72
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....nder section 10(23C)(vi) of the Act. However, the Assessing Officer, i.e., the Deputy Commissioner of Income-tax, Circle-Tinsukia, insisted on production of approval of the Chief Commissioner of Income-tax and in this connection, issued notice dated July 28, 2010. At that stage, petitioner No. 1 by his letter dated July 31, 2010, requested the Chief Commissioner of Income-tax, Shillong, for an early action on the application seeking exemption of income from payment of income-tax under section 10(23C)(vi) of the Act. Ultimately, the Chief Commissioner of Income-tax, Shillong, passed order dated October 12, 2011, rejecting the prayer of the petitioners by declining to grant approval under section 10(23C)(vi) of the Act. Aggrieved, the petitioners have preferred the present writ petition seeking the reliefs as indicated above. Heard Mr. Kamal Agarwal, learned counsel for the petitioners, and Mr. S. Saikia, learned standing counsel, Income-tax Department. While Mr. Agarwal, learned counsel for the petitioners submits that the Chief Commissioner of Income-tax had committed a manifest error of law and fact while rejecting the claim of the petitioners for exemption of income f....
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....r a trust or other similar body running an educational institution solely for educational purposes and not for the purpose of profit could be regarded as "other educational institution". It was further observed that the applicability of section 10(22) should be evaluated or investigated every year and only if it is found that the institution exists for educational purposes in the relevant year and even if any profit results which is only incidental to the purpose of education, the income would be exempt. It was held as under (page 318) : "We may state that the language of section 10(22) of the Act is plain and clear and the availability of the exemption should be evaluated each year to find out whether the institution existed during the relevant year solely for educational purposes and not for purposes of profit. After meeting the expenditure, if any surplus results incidentally from the activity lawfully carried on by the educational institution, it will not cease to be one existing solely for educational purposes since the object is not one to make profit. The decisive or acid test is whether on an overall view of the matter, the object is to make prof....
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....d classical manuscripts, writings and literature of all kinds and painting curies and sculptures. (f) To print, publish, distribute and sell, books, newspapers, magazines, pamphlets, leaflets, brochures, souvenirs and other publications having its objects teaching, propagation, promotion and development of ancient Hindu culture, literature science and technology, and to keep reserved the copyright of all or any of such publications for the trust, if considered necessary. (g) To award grant and present stipends, scholarships, prizes, bonus, medals, study-loans and other allowances, concessions, gratuities to students, workers, writers, authors, editors and other interested persons in the advancement of education and culture. (h) To declare and give bonus, gratuities pensions or other concessions and allowances to persons who are or were in the employ of the trust or of any institution or institutions maintained and run by the trust or the families or dependants of such persons. (i) To help needy persons, whether victims of flood, epidemic, earthquakes, war, civil disturbances or any other cause whatsoever with medicines, clothes, accommodations and rendering all other he....
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....nd conditions as the trustees may think fit and proper. (s) To work for all or any other charitable purposes which may benefit the people in general provided always that and it is hereby declared that if any one or more of the objects specified above are held not to be for public charity, the trustees shall not carry out such object or objects as if the same are not incorporated in these presents, but the validity of the trust created by these presents as a trust for charitable purposes shall not be affected in any manner." The trust deed has to be read as a whole. If the object clause of the trust deed is read in a holistic manner, it would show beyond any reasonable doubt that the principal objective of the trust is to establish and maintain educational institutions in the country. We may now refer to the relevant portion of the impugned order passed by the Chief Commissioner, which is as under : "The applicant-school has its own bye-laws and constitutions wherein the objects of the school are also mentioned. However, the school being a unit of a trust, it is governed and administered by the trust deed of 'Sree Kanya Pathsala Trust' whos....