TaxTMI 
TaxTMI 
2025 (3) TMI 873
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....sed 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 the educational purpose. Learned Senior Counsel f....
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....e 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 association, which are reproduced here below: "5(i) The reply of the application has been considered. The memo....
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....elp 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 handicapped. (l) Establishing or rendering help to any institutions for the alleviation of human suffering. (m) Making grants in cash or kind to institutions and organizations engaged in providing relief to people effect....
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....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 is of the opinion that the interpretation adopted by the judgments in American Hotel as well as Queen's Educational Society as to the meaning of the expression "Solely" are erroneous. The trust or education institution, which seeks approval or exemption, should solely be concern....
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....nal 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 into consideration the entire material on record, in fact, the Commissioner, while considering the application of the assessee for grant of exemption under Section 10(23C) (vi) specifically observed and held that the activity of the assessee cannot be said to be solely for imparting the education and th....