TaxTMI 
TaxTMI 
1998 (6) TMI 9
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.... the Board as colleges and training schools ; so also, to improve the conduct and knowledge of the students ; (Corrigendum : It was resolved unanimously in the general body meeting convened on August 29, 1953, to amend clause (b) as follows : To convert Board schools into special schools or branch schools ; to found and improve ladies college and ladies training school ; and to improve the conduct and knowledge). (c) To administer and improve the properties mentioned in the schedule ; (d) To construct buildings in the lands belonging to the Board ; and to change, modify or remove the existing buildings ; (e) To get immovable properties like land, buildings, etc., or movable properties on lease basis or to purchase them, that are necessa....
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.... a decision of the Supreme Court in the case of Aditanar Educational Institution v. Addl. CIT [1997] 224 ITR 310, wherein the Supreme Court laid down the following test to determine when the institution would qualify for exemption under section 10(22) of the Act : "We may state that the language of section 10(22) of the Act is plain and clear and the availability of the exemption should be evaluated each year to find out whether the institution existed during the relevant year solely for educational purposes and not for purposes of profit. After meeting the expenditure, if any surplus results incidentally from the activity lawfully carried on by the educational institution, it will not cease to be one existing solely for educational purpos....
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....trust. The apex court in Aditanar Educational Institution's case [1997] 224 ITR 310, held that a distinction/difference should be made between the corpus, objects and powers of the trustees. When the distinction between the objects and powers are kept in mind, clauses (c) to (e) are only powers of the trustees which is made explicit by clause (f). That apart, clause 3(g) of the trust deed also makes it clear that the income from the properties should be utilised to implement the objects mentioned in clauses 3(a) and 3(b). Therefore, we are of the view, the object of the trust is education and it is not to make profit. As held by the Supreme Court the acid test is whether the object is to make profit. But, in construing the objects, one has ....