TaxTMI 
TaxTMI 
2018 (5) TMI 1770
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....e is a Trust, formed and registered (under the Societies Registration Act, 1860) on 01. 4. 2001 and 18. 04. 2001 respectively. The trust deed stood amended (with effect from 01. 01. 2003) on 11. 02. 2003, again registered with the office of the Sub-registrar, Ludhiana (East). It is running a School by the name 'Sutlej Public Senior Secondary School' at village Hawas, Rahon Road, Ludhiana which is also the registered address of the trust, since the year 2002. The school, presently up to Class XII (PB pg. 78), has been, subject to the conditions specified by it, vide its' letter dated 03. 05. 2015, and the further conditions as may be intimated from time to time, granted provisional affiliation up to 31. 03. 2020 by the Central Board of Secon....
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....pinges on the second condition 'not for profit' of section 10(23C)(vi). In other words, neither the condition of 'existing solely for the purposes of education' nor 'not for the purposes of profit' of the said provision stand satisfied, even as non-fulfillment of either would make the assessee ineligible for approval u/s. 10(23C)(vi). The same being decided thus, the assessee is in appeal. 4. We have heard the parties, and perused the material on record. 4.1 Section 10(23C)(vi) reads as under: 'Incomes not included in total income. 10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included- (23C) any income received by any person on behalf of- ....
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.... number, he had no answer, but would reiterate that the trust does not 'intend' to engage in any other activity. As regards the vesting of the power of management in the members of one family, so that it looses its public character, he would refer to Circular No. 14/2015, dated 17. 08. 2015, by the CBDT (copy on record). At para 5 thereof, it stands clarified that though the answer to such a situation would normally depend on the factual implication of such an arrangement, the same should generally not be a ground for denying exemption, i. e. , unless the nature of the activities of the trust/institution get changed or modified or no longer remain as existing solely for the purposes of education and not for the purposes of profit. No such f....
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....onstituting document; it being undisputed that the said school is owned and managed by the assessee trust. 4.4 Continuing further, without doubt, SPSSS exists solely for the purpose of education, having 585 students (from class LKG to XII) on its rolls (for the academic session 2017-18), undergoing scholastic training, under affiliation to CBSE, which also prescribes the syllabi, the course curriculum, including facilities, viz. for sports, science labs, music, etc. to be provided to its students. It, as it appears, under its' guidelines (or the Right to Education Act), is extending concession in fee to the economically backward students, etc. (PB pg. 34). How could, then, one may ask, it be said or regarded as not existing solely for educ....
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....trust (for fys. 2014-15 to 2016-17) have also been perused by us to find the profit rate, as a percentage of the gross receipt, as reasonable. There is thus little merit in the Revenue's objection of the said restrictive clauses impinging adversely on the condition as to existing 'not for the purpose of profit' in section 10(23C)(vi). 4.6 The only issue, thus, that survives is that the funds (or income) of the educational institution are (or, is) not to be utilized by the assessee-trust, owning and managing it, for any other (non-educational) object/purpose, which, as aforenoted, there are several (also refer para 2 of the impugned order/cl. 3 of the trust deed). That is as where the funds of an educational institution are used by the pers....