TaxTMI 
TaxTMI 
TaxTMI 
2015 (5) TMI 124
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....s a registered society under the provisions of the Societies Registration Act; petitioner society is running an educational institution in the name and style of Doon (P.G.) College of Agriculture Science and Technology; petitioner society has been granted registration under Section 12A of the Income Tax Act by the Commissioner, Income Tax, Dehradun treating it as a charitable society on 14.3.2008; petitioner society applied for grant of exemption under Section 10 (23C) (vi) of the Income Tax Act for financial year 2008-09 (relevant to assessment year 2009-10) by filing an application in the prescribed Form No. 56D along with the Memorandum of Association of the society; application of the petitioner society was rejected vide impugned order ....
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....able and, on this ground too, the petitioner society is not entitled for any exemption under Section 10 (23C) (vi) of the Income Tax Act. Undisputedly, petitioner society is running an educational institution and furnished income tax return declaring 'Nil' return by claiming exemption and was duly assessed by the income tax authorities as 'Nil" income tax for the assessment year 2008-09. Mr. Hari Mohan Bhatia, learned counsel appearing for the Revenue, does not dispute that petitioner society does not have any other source of income and return was submitted by the petitioner society pertaining to the educational institution in question only. Since, petitioner registered society is running the education institution, therefore, for all pract....
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....ax, Gujarat v. Surat Art Silk Cloth Manufacturers Association reported in (1980) 121 ITR 1 SC, Hon'ble Apex Court has held that test of pre-dominant object of the activity is to see whether it exists solely for educational purposes and not for profit. The judgment of Hon'ble Apex Court in the case of Surat Art Silk Cloth Manufacturers Association (supra) and in the case of Aditanar Educational Institution (supra) were duly relied upon by the Hon'ble Apex Court in the case of American Hotel & Lodging Association, Educational Institute v. Central Board of Direct Taxes & Ors. Reported in (2008) 301 ITR 86 (SC). Judgments were further approved in the recent judgment of Hon'ble Apex Court in the case of M/s Queen's Educational Society v. Commis....
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....e development in the fields of science literature, sports etc. and to further the objects of the society. 9. To construct, demolish, acquire, maintain any building in connection with the school and boarding houses for the residence for the students, employees and worker of the society and affiliate or manage institution of the similar object. 10. To provide scholarship to deserving students. 11. To seek help from the public or Government for finance as and when deemed necessary in the interest of the society. 12. To accept voluntary donations, from the parents of the students or from any other person, firm, society and /or foreign country, who may desire to contribute towards the aims of the society. 13. To organize cultural shows, dra....
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....or calculated to further its objects. 21. To co-operate, federate, associate or otherwise to establish contract with other organizations in India or abroad living having similar aims and objects and nature. 22. To obtain loan for development of educational institute by pledging the assets , if required, and to give financial help only to other educational institute at its urgent need which is existed solely for educational purposes and not for purposes of profit." The perusal of all 22 Objects of the Memorandum of Society of the petitioner society would reveal that none of the object is for the purpose of earning profit. The perusal of Object Nos. 3, 4 & 5 of the Memorandum of Society would reveal that petitioner society shall undertake....