2006 (9) TMI 107

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....y, i.e., the Commissioner of Income-tax (Appeals), to decide the issue again as to whether there was any misutilisation of the funds by the trustees or owners of the assessee society and consequently whether the assessee was entitled to exemption from income-tax under section 10(22) of the Act. 2 This appeal is for the assessment year 1996-97 and learned counsel urged that for the preceding assessment year 1995-96 the Income-tax Appellate Tribunal itself has decided in favour of the assessee that the assessee was entitled to exemption under section 10(22) of the Act and even the appeal against the said order of the Income-tax Appellate Tribunal  was dismissed by this court and the said judgment has been reported as Deputy CIT v. Cos....

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....th effect from April 1, 1999, provided for exemption from income-tax. Section 10(22) at relevant point of time read as under : "10. (22) any income of a university or other educational institution, existing solely for educational purposes and not for purposes of profit." 6 With effect from April 1, 1999, i.e., the assessment year 1999-2000, this exemption available to educational institution, stands withdrawn and the rationale behind such withdrawal lies in the wide misuse of such exemption in the absence of any monitoring mechanism for checking the genuineness of the activities of the educational institutions claiming such exemption. 7 The question whether the educational institution existed solely for educational  purposes a....

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....cting the assessing authority to exempt the income of the assessee der section 10(22) of the Act. That was not found to be justified by the learned Income-tax Appellate Tribunal and, therefore, the Tribunal has remanded the case back to the Commissioner of Income-tax (Appeals) for redeciding the issue and give appropriate findings of facts. Without com paring the facts of the assessment year 1996-97 with the facts of the pre vious assessment year 1995-96 the learned Commissioner of Income-tax (Appeals) could not have mechanically observed that the facts were identical  to those obtaining in the previous assessment year. Since the misutilisation of funds is a question of fact which may be different in different assessment years this exe....