TaxTMI 
TaxTMI 
2009 (10) TMI 60
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....bers nominated by the State Government. In the year 1968, the Government re-constituted the said Committee as `Board of Text Book Production and Research'. The said Board was converted into Corporation in 1972 and the name was changed to `Assam State Text Book Production and Publication Corporation Limited' vide Notification dated 26th July, 1972 [for short, "the Corporation"]. All the assets of the said Board stood transferred to the Corporation with effect from 1st July, 1972. The Corporation had paid-up share capital of Rupees one crore and the break-up of the share holding was as follows: NAME SHARES FACE VALUE 1. Governor of Assam, represented by the Secretary, Education Department, Govt. of Assam 9998 nos. Rs.99,98,0....
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....ot exist solely for educational purposes, particularly in view of Clause 21 of the Memorandum of Association which provides for distribution of dividends, hence, its income was not exempt under Section 10(22) of the Act. This decision of the Assessing Officer was upheld by Commissioner of Income Tax (Appeals]. In the Tribunal, there was difference of opinion between Member [Judicial] and Member [Accountant]. By decision of the majority, it was held that the Corporation was an Educational Institution and, consequently, the Corporation was entitled to the benefit of exemption under Section 10(22) of the Act for the relevant Assessment Years in question. However, in appeal filed by the Department, the High Court came to the conclusion th....
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....ation. That, Clause 21 of the Memorandum and Articles of Association provides a Return on Investment to the State of Assam. That, in the year 1975, in a similar situation, Central Board of Direct Taxes [for short, "C.B.D.T."] had granted exemption under Section 10(22) of the Act vide letter dated 19th August, 1975, to Tamilnadu Text Books Society, which performed activities similar to those of the assessee. The letter dated 19th August, 1975, is referred to in the judgement of the Rajasthan High Court in the case of Commissioner of Income Tax vs. Rajasthan State Text Book Board, reported in 244 I.T.R. 667. As can be seen from the facts of that case, a similar question came up for consideration before the Rajasthan High Court, namely, whethe....
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....amount, if any, of the respondent- assessee, is used for any other purpose or distributed to other members. The Commissioner of Income-tax (Appeals) as well as the Tribunal have noticed that even if some amount remains surplus, that is utilised only for the purposes of education. Thus, having regard to the concurrent findings of fact recorded by the Commissioner of Income-tax (Appeals) and the Tribunal and also taking note of the letter of the Central Board of Direct Taxes itself, it is not possible for us to say that the order of the Tribunal is erroneous in any way. In this way, no question of law arises for consideration much less a substantial question of law." Following the judgement of the Rajasthan High Court, we are of the view t....