TaxTMI 
TaxTMI 
2025 (3) TMI 1764
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....e assessee society is registered under the provisions of Registration of Societies Act, 1860 on 14/3/1990 and obtained approval under section 10(23c)(vi) of the Income Tax Act, 1961 ("the Act") on 20/12/2007 granted by the Chief Commissioner of Income Tax, Visakhapatnam. Assessee society set up the educational institutions, namely, AQJ college of Degree and P.G. College, AQJ Centre for PG Studies and AQJ College of Pharmacy, and was running the same during the subject financial year. 3. For the assessment year 2015-16, assessee filed the return of income on 31/3/2016 declaring nil income, after claiming exemption under section 10(23c)(vi) of the Act to the tune of Rs. 2,34,62,119/-. During the course of assessment, learned Assessing Officer noticed that apart from carrying out the activity of imparting education for graduation and post-graduation courses like B.Sc.,B.Com., MBA., and MCA, the assessee also carrying out short-term courses like coaching for competitive examinations like I-CET, PGCET, banking recruitment, group 1 and 2 services etc., and derived more than 52.72% of income from such activities. According to the learned Assessing Officer such activity does not fall in....
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....f Section 10(23C)(vi) of the Act, which reads that,- Incomes not included in total income. 10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included- ... ... ... ... ... ... (23C) any income received by any person on behalf of- ...  ....
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....on'ble Court expanded the definition of education beyond formal schooling to include any structured activity aimed at intellectual, professional, or character development, such as coaching for professional exams. 9. For an institute to qualify for tax exemptions under Section 10(23C)(vi) of the Act, its primary objective must remain educational, and it must operate without a profit motive. The institution's income, for example, from coaching fees, must be reinvested into the educational activities of the institution, such as faculty development or infrastructure improvement. If the income is diverted for non-educational purposes or distributed as profit, the institution would lose its eligibility for the exemption. This requirement is central to ensuring that institutions claiming exemptions under Section 10(23C)(vi) of the Act are truly focused on educational goals and not on generating private profit. 10. In addition to meeting the criteria of Section 10(23C)(vi) of the Act, the institution must also be registered under Section 12A of the Act, which ensures that the institution operates for charitable purposes. While Section 12A of the Act registration confirms the char....
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.... the year of acquisition, therefore the learned DR relied upon the order of the learned CIT(A) and prayed to uphold the contention of the lower authorities. 14. We have considered the rival submissions based on the material on record. In the present case no new assets are acquired during the year after the date of amendment in the Act and the assessee claimed the depreciation on the opening balance of fixed assets which cannot be denied. On the face of this fact, the issue is also no longer res integra. In the case of Rajasthan and Gujrati Charitable Foundation (supra), Hon'ble Apex Court held that the legislature, realizing that there was no specific provision in this behalf in the Act, has made amendment in Section 11(6) of the Act vide Finance Act No.2/2014 which became effective from the Assessment Year 2015-16, that the Hon'ble Delhi High Court has taken the view and rightly so, that the said amendment is prospective in nature, and it also follows that once assessee is allowed depreciation, he shall be entitled to carry forward the depreciation as well. 15. Respectfully following the judgement of Hon'ble Supreme Court in case of Rajasthan and Gujarati Charitable ....