TaxTMI 
TaxTMI 
2022 (7) TMI 801
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..... He, therefore, submits that respondent-assessee received income from this hostel and other activities, which is not exempted and such income has rightly been added by the assessing officer. Learned counsel for the respondent-assessee opposes the contention of the learned counsel for the appellant. We have perused the order of the Income Tax Appellate Tribunal. In para no.7 of the impugned order, the Income Tax Appellate Tribunal has held as under:- "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 educ....
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....ataka Lingayat Education Society in ITA No. 5004/2012 dated 15/10/2014 wherein it has been held that providing hostel to the students/staff working for the society's incidental to achieve the object of providing education, namely the object of the society. In view of this we are of the opinion tht providing of hostel facility and transport facility to the student and staff member of the educational institute cannot be considered as business activity, but it subservient to the object of educational activity 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 (I976) 38 STC 428 (All) wherein question arose in Indian Instifute of Technology vs. State of UP (197....
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....eld that transport and hostel facilities surplus cannot be considered as business income of the assessee society which is manly engaged in business activities and these activities are subservient to the main object of education of the trust". In the absence of any evidence to show that the hostel facilities were provided to anybody other than students and staff of the trust, the hostel facilities provided by the educational institution shall be construed to be the intrinsic part of the 'educational activities' of the assessee and they cannot be considered different than activities of the society of 'education'. Thus, the addition amounting to Rs. 3,92,25,432/- made by the Assessing Officer and sustained by the CIT (A) is n....