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2017 (5) TMI 1598 - RAJASTHAN HIGH COURTBenefit of section 11(1) as charitable trust - charitable activity - Held that:- Any educational institution which is required to be run they have to have a surplus fund for educational activity to sustain the consistency in the efficiency and very purpose of collecting donation is to sustain activity of institution. Merely, because surplus fund it cannot be envisaged as profit, the institution has not crossed one crore limit and they are well within their prescribed limit. The income was received by the trust which is reflected in the books of accounts. In our view, the view taken by the authority is required to be reversed and it is required to be looked into the foundation of the ratio laid down by the Supreme Court in the case of Queen’s Education Society (2015 (3) TMI 619 - SUPREME COURT) where funds which has been surplus is within a corpus fund and it has been kept as reserve fund which is not in dispute and they have not crossed the limit of one crore. Taking into consideration the aforesaid, we are of the opinion that the contention raised by Mr. Jhanwar is required to accepted. Therefore, the first question, we answering in favour of the assessee that it is an income entitled for exemption under Section 10(23C)(iiiad) of the Act - Decided in favour of assessee
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