2006 (5) TMI 68

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....tution for the past many years. It has been allowed exemption under section 10(22) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), from payment of tax ever since the assessment year 1986-87. For the assessment years 1995-96 and 1996-97, the Assessing Officer declined exemption under the provision mentioned above on the ground that the assessee was a profit making organisation a....

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....earlier did not disentitle the society from claiming exemption under section 10(22) as it could utilise the surplus funds available with it for better returns which would in turn be used for educational purposes. Reliance in support was placed upon the decisions in Birla Vidhya Vihar Trust v. CIT [1982] 136 ITR 445 (Cal), Gujarat State Co-operative Union v. CIT [1992] 195 ITR 279 (Guj) and Seconda....

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....Income-tax Appellate Tribunal. We entirely agree with the view taken by the Commissioner of Income-tax (Appeals) and the Income-tax Appellate Tribunal that the respondent-assessee-society existed solely for educational purposes and that it had no profit motive in mind. We also are of the view that the surplus funds available with the assessee could be suitably invested whether by way of fixed depo....