2025 (11) TMI 1166

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..../s 10(23C)(vi) of the Income Tax Act, 1961 (hereinafter referred as 'the Act'). 2. Head and perused the records. That the appellant/assessee is an educational institution/society situated in Bhiwani in the State of Haryana. The primary aim and object of the Society is to provide sound education at all levels. The Society is managed and controlled by the Managing Committee of the Society/Institution. Vaish Mahavidyalaya Trust, Bhiwani, being the parent body of the Society/Institution, shall exercise supervisory powers and provide necessary guidance to the Society through the Managing Committee as and when required. The claim of assessee is that all income, earnings, and properties, whether movable or immovable, is devoted entirely for adv....

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....ancy in the maintenance of accounts and incurring of expenditure relating to purchase and consumption of diesel and examination fees, which is not fully & exclusively for the purpose of education 28.09.2018 The assessee (2nd time). approached Hon'ble Punjab and Haryana High Court vide CWP No. 16541 of 2012 challenging the rejection order dated 28.05.2012. The Hon'ble High Court vide order dated 28.09.2018 again set aside the order of rejection dated 28.05.2012 directing the respondent to decide the matter afresh in accordance with law. [Pg.42- Pg.45 of Paper Book] 19.09.2020 The assessee filed an application before the respondents to give effect to the judgment of Hon'ble Punjab and Haryana High Court in CWP No.16541 of 2012. ....

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....ee Society is Generating Substantial Surplus Every Year. The objects of the assessee society is solely to engage itself in education or educational activities. Engaging in educational activities certainly involves creating assets for carrying out such activities. The source of acquisition of such assets need not always by from the corpus or donations, but own surplus generated by the assessee society in course of providing education or educational activities. There is no bar under the Act to not generate surplus so generation of surplus in a given year or set of years per in course of providing education or education related activities cannot by itself be ground to reject application the application for exemption U/s 10(23C)(vi) of the Act ....

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....ns 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 (supra) so far as they pertain to the interpretation of expression 'solely' are hereby disapproved. The judgments are accordingly overruled to that extent. f While considering applications for approval under section 10(23C), the Commissioner or the concerned authority as the case may be under the second proviso is not bound to examine only the objects of the institution. To asce....