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2014 (4) TMI 747 - HC - Income TaxEligibility to claim deduction u/s 10(23C)(iiiad) of the Act – Purpose not solely Educational – Interpretation of the term “other than education” – Held that:- Any income received by any person on behalf of the educational institution “existing” solely for educational purpose and not for purposes of profit and if its aggregate annual receipts do not exceed the amount of annual receipts as may be prescribed, it is entitled for exemption under this provision – The society has been conducting the primary and secondary school in the State of Karnataka since 2002 - Nor is there any dispute that save and except for conducting school, the society has carried on any other activities since then - Without expressing any opinion whether the object, as reflected in Clause 3(b) and 3(h) of the Memorandum of Association, are related to education, it is clear that save and except educational activity the assessee did not/do not carry on any other activity is the fact, which is not in dispute - though the activities as reflected in Clause 3(b) and 3(h), may constitute the purpose, other than the educational purpose, but, during the relevant assessment year, it is not the case of the revenue nor is there any material to show, that the society was running any activities other than the educational activity. There are adequate safeguards that if the activities other than educational activities are undertaken by the society, exemption granted can be withdrawn - Merely, because there exists object, which is not related to educational activities, is not sufficient to deny the exemption/benefit of Section 10(23C)(iiiad) of the Act - in the absence of any allegation or material against the society showing that they are involved in any other activities than the educational activities, it cannot be denied exemption u/s 10(23C)(iiiad) – Decided in favour of Assessee.
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