Educational society's exemption restored; surplus profits allowed if linked to education.

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Full Text of the Document

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....Assessee society's activities allowed as eligible for deduction u/s 10(23C)(vi) for previous assessment years. AO denied exemption u/s 11, alleging profits from publication business and advances to sister concern/universities. Supreme Court in New Noble Educational Society case held that disproportionate surpluses/profits should not be given weight if incidental to main educational activities. Matter remanded to AO to re-examine issue after giving opportunity of hearing to assessee, who shall furnish evidence proving activities are not commercial in nature and interlinked with imparting education. Assessee can file requisite documents.....