2017 (1) TMI 174

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....given free exemption and all these children were of staff members. These exemptions have been allowed to the meritorious students only. Total receipts of the school of the society is 1,74,61,091/-, which does not include building fund amount of Rs. 3,16,500/-, out of such huge receipts the surplus generated by the society is Rs. 67,01,868/- after claiming huge expenses. The school is indulging in commercial activities like plying of buses, running hostels and mess, organizing tours etc. No separate books of a/c have been maintained for such activities. The society is not at all bothered to take into a/c its sound financial position and charging fees from the students in mind less gradually increasing way. The society has invested 2,26,97,76....

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....iness is incidental to the attainment of the objectives of the Institution and separate books of account are maintained in respect of such business; d) the Institution will regularly file its return of income before the Income Tax authority in accordance with the provisions of the Income tax Act, 1961; e) that in the event of dissolution of the Institution, its surplus and the assets will be given to an organization with similar objectives., f) the institution will continue to be exist solely for educational purpose. g) The institute will get its accounts audited by an accountant as defined in Explanation below sub section (2) of section 288 and furnish along with the return of Income. The report of such audit in the prescribed form....