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2006 (5) TMI 68 - DELHI HIGH COURTRespondent-assessee is running an educational institution – AO declined exemption u/s 10(22) on the ground that the assessee was a profit making organisation and that the same did not exist solely for educational purpose. In support, the Assessing Officer relied upon investments made by the respondent in three different companies - surplus funds available with the assessee could be suitably invested whether by way of fixed deposit in a bank or financial institution or in stock market to earn profit which would in turn be available to the society for being utilised to pursue its educational purposes. Inasmuch as the assessee had in the instant case invested a part of its surplus funds for purchase of rights and bonus shares in companies wherein it had acquired some shares in the earlier years, it could not be said to have digressed from its basic purpose of running the educational institution. – revenue appeal dismissed – no perversity in tribunal’s order – exemption available
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