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2014 (2) TMI 72 - HC - Income TaxApplication for exemption u/s 10(23C)(vi) - Held that:- Relying upon the decision in Aditanar Educational Institution v. Addl. CIT [1997 (2) TMI 3 - SUPREME Court] - The applicability of section 10(22) should be evaluated or investigated every year and only if it is found that the institution exists for educational purposes in the relevant year and even if any profit results which is only incidental to the purpose of education, the income would be exempt - After meeting the expenditure, if any surplus results incidentally from the activity lawfully carried on by the educational institution, it will not cease to be one existing solely for educational purposes since the object is not one to make profit - The decisive or acid test is whether on an overall view of the matter, the object is to make profit - In evaluating or appraising the above, one should also bear in mind the distinction/ difference between the corpus, the objects and the powers of the concerned entity - Decided in favour of petitioner.
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