TaxTMI 
TaxTMI 
2025 (3) TMI 873
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....ned order dated 03.09.2013 (Annexure P-9) passed by the Chief Commissioner of Income Tax Aayakar Bhawan, Rishi Nagar, Ludhiana, whereby the application preferred by the petitioner for exemption/approval under Section 10 (23 C) (vi) of the Income Tax Act, 1961 (for short, 'the Act of 1961') for the assessment year 2012-13, was declined. 2. Learned Senior counsel for the petitioner submits that the trust was entitled for exemption under Section 10 (23C)(vi) of the Act of 1961 with respect to the income of the educational institution and as per the plain reading of the said Section the income received was required to be exempted only if it was solely for the purpose of education. It was also urged that the surplus was only to be used for th....
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....er Section 12AA of the Act of 1961 and the aims and objects of the entire memorandum of the society are for charitable purpose, to grant exemption under Section 10 (23 C) (iv) of the Act of 1961. Section 10 (23 C) (vi) of the Act of 1961 provides as under: "(vi) any university or other educational institution existing solely for educational purposes and not for purposes of profit, other than those mentioned in subclause (iiiab) or sub-clause (iiiad) and which may be approved by the prescribed authority;" 6. We have carefully considered the submissions and gone through the impugned order. From perusal of the impugned order it appears that the Authority has noticed the aims and objects of the trust mentioned in the memorandum of a....
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....ations to hospitals, dispensaries, convalescent homes, asylums, nursing homes and other public institutions for administering medical relief of the needy. (ii) Endowments to and help or support to hospitals, maternity homes, sanatorium and dispensaries. (iii) Grant of medical help to the poor and grant of medical help to deserving persons during epidemic, famine, flood earthquake or any unforeseen calamity or way or warlike operations. (i) Distribution of free food and clothing to the poor and needy. (j) Setting up or helping by endowments or otherwise orphanages or poor houses for the benefit of orphans and/or other deserving Persons. (k) Helping of poor widows, single parents and other handicap....
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....es and not for purposes of profit if the aggregate annual receipts of such university or educational institution do not exceed the amount of annual receipts as may be prescribed;" 8. The Authority has rejected the contention and claim of the petitioner-trust on the ground that as per the aims and objects of the trust, it is apparent that it has not only been formed for the purpose of advancing education, but is also for other purposes as mentioned in Clause 5(i) (j) (k) (l) (m) (n) (o) (supra). 9. In New Nobles case (supra), three judges Bench of the Supreme Court considered at length the entire law relating to Section 10 (23 C) (vi) of the Act of 1961 and held as under: "64. In the light of the above discussion, this Court i....
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....e casing the 5. Educational Society (supra), it is specifically observed and held by the three-Judge Bench of this Court that for claiming the benefit/exemption under Section 10(23C)(ii)(ab) which is para materia to Section 10(23C) (vi) the activity of the assessee must be be solely for educational purposes and if ultimately it is found that the activity is for profits the assessee is not entitled to the exemption under Section 10(23C)(vi) of the Act. 6. Applying the law laid down by this Court in the case of New Noble Educational Society (supra) referred to hereinabove to the facts of the case on hand, the impugned judgment and order passed by the High Court is unsustainable. At this stage, it is required to be noted that taking i....