2024 (5) TMI 703

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.... order passed by the ITAT whereby the order passed by the CIT (Exemptions), Chandigarh was quashed and set aside. 2. Learned counsel for the Revenue submits that the ITAT has fallen in error and a substantial question of law arises in the present case for adjudication by this Court. 3. However, we find that the ITAT has found that Rule 2BBB was not applicable during the impugned assessment year i.e. A.Y. 2012-13, as the same was brought in force from 12.12.2014. 4. Learned counsel further submits that judgment of Tolani Education Society vs. Deputy Director of Income Tax (Exemptions), [2013] 351 ITR 184 relied on the judgment passed by the Supreme Court in Queen's Educational Society vs. Commissioner of Income Tax, [2015] 372 ITR 6....

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....tion 10(23C), as well as Section 11(4A) refer to profits which may be 'incidentally' generated or earned by the charitable institution. In the present case, the same is applicable only to those institutions which impart education or are engaged in activities connected to education. d. The reference to 'business' and 'profits' in the seventh proviso to Section 10(23C) and Section 11(4A) merely means that the profits of business which is 'incidental' to educational activity - as explained in the earlier part of the judgment i.e., relating to education such as sale of text books, providing school bus facilities, hostel facilities, etc. e. The reasoning and conclusions in American Hotel (supra) and Queen's Education Society (s....