TaxTMI 
TaxTMI 
2021 (7) TMI 905
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....ssessing hostel surplus as business income of the assessee, completely ignoring the fact that the assessee is an educational society providing education by running various educational institutes and hostel facility is provided to the students as per ACITE norms and it is an inseparable and integral part of the main purpose of society for which it has been established i.e. to provide education to the students, which is not a business activity. 2. Whereas Ld. Commissioner (Appeal) erred in law as also in facts and circumstances of the case to confirm the findings of the AO which are largely based on the information given on a website, which is totally irrelevant to the facts and circumstances of the case of the assessee. It is clear from t....
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....er dated 7/3/2013. The assessee runs various Educational Institutions, Colleges and various courses are maintained by the assessee which are govern by Rules and Regulations, All India Counsel for Technical Education (AICTE), Gautam Budh Technical University(GBTU), apart from Running Educational Institutes, Medical Colleges and Charitable Hospitals. The assessee is also maintaining hostel from the in house student which is an integral part/integral activity for the functionality of Educational Institute. The Ld. AR submitted that if any surplus is generated, the same is applied for running and maintaining various charitable activities carried on by assessee society to which the Assessing Officer has wrongly treated running and maintain hoste....
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....on the assessment order and the order of the CIT(A). 7. We have heard both the parties and perused all the relevant material available on record. There is delay of 32 days in filing the present appeal which was explained by the Ld. AR at the time of hearing, the same is genuine, hence the delay is condoned. The assessee is a Society running Educational Institutes, Medical Colleges and Charitable Hospitals which is affiliated with All India Counsel for Technical Education. It is also undisputed that assessee is carrying educational activity and running various Colleges especially Medical Colleges and Charitable Hospitals. The income from charitable activities declared by the assessee was NIL and the assessee earned gross receipt of Rs. 61,6....
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....ational Institute cannot be considered as business activity but is subservient to the object of educational activities performed by the society. We are also supported by our view by the decision of the Hon'ble Allahabad High Court in IT vs. State of UP (1976) 38 STC 428 (All) wherein question arose in Indian Institute of Technology vs. State of UP (1976) 38 STC 428 (All) with respect to the visitors' hostel maintained by the Indian Institute of Technology where lodging and boarding facilities were provided to persons who would come to the Institute in connection with education and the academic activities of the Institute. It was observed that the statutory obligation of maintenance of the hostel, which involved supply, and sale of food was ....