TaxTMI 
TaxTMI 
TaxTMI 
2019 (2) TMI 815
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....ee, a charitable institution registered under the Travancore- Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 and running an educational institution affiliated with CBSE, is before us. The following substantial questions of law, as framed by another Division Bench of this Court, arise for consideration: "(i)Whether on the facts and circumstances of the case, Appellate Tribunal was justified in sustaining the order of the assessing authority by not granting the benefit of exemption under Section 10(22) of the Income Tax Act ? (ii)Ought not the Hon'ble Tribunal to have found that an enquiry as to the ownership of land on which the educational institution was situated was wholly alien to the issue of eligib....
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....ed and that the document of sale inadvertently mentions the names of Satheesh Kumar and Pushpavally, though the purchase of land was accounted for in the school register and books. 5. The appeal preferred before the C.I.T. (Appeals) was allowed vide Annexure G holding that the onus is on the A.O. to establish the existence of profit motive in the activities of the assessee. 6. The Revenue preferred appeal before the Tribunal, which was allowed vide Annexure I order confirming the finding of the A.O. on the sole ground that the land in question was purchased in the name of the Secretary and Principal of the school. The said order stands impugned. 7. The learned Counsel for the assessee argues that the Society is not being run for profit a....
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....e. "10.Incomes not included in total income.- xx xx (22)any income of a university or other educational institution, existing solely for educational purposes and not for purposes of profit;" 10. The provision indicates that the exemption granted under Section 10(22) is not to the income derived from any educational institution, but to institutions existing "solely for educational purposes and not for the purpose of profit". Facts reveal that the school is functioning in a property, acquired in the name of the Secretary and his wife, and not in the name of the Society or the school; which has no independent existence from the Society, atleast so far as the Income Tax Act. The balance sheet of the assessee indicated acquisition of a....
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.... of the institution. The mere existence of profit/ surplus did not disqualify the institution. It was held so: "36.The moot question in Section 10(22) was whether the activities of the applicant came within the definition of "income of educational institution". Under Section 10(22) one had to closely analyse the activities of the institute, the objects of the institute and its source of income and its utilisation. Even if one of the objects enabled the institute to undertake commercial activity, the institute would not be entitled to approval under Section 10(22). The said section inter alia excludes the income of the educational institute from the total income. 37. In CIT v. Surat Art Silk Cloth Manufacturers' Assn., (1980) 2 SCC 31, ....
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....rting of education in India. Therefore, the test formulated by the Court to decide the character of the recipient of income under Section 10(22) is whether there is in fact existence of an activity, which is in the nature of "imparting of education in India". American Hotel and Lodging Association Educational Institute found that this is how the words "in India" have come into the judgment in Oxford University Press (supra) and not by incorporation from Section 11(1)(a) of the Act. Oxford University Press carried no educational activity in India and the exemption did not apply to the University. All the learned Judges held in Oxford University Press (supra) that the words "in India" cannot be read into Section 10(22) resulting in either onl....