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2010 (3) TMI 946 - HC - Income Taxwhether the object of the institution is to make profit and whether the activities of the institution are in terms of the purpose for which it is established, education and education only.? Held that:- What is relevant is purpose and administration of the institution only for education and nothing more or nothing less or else. It has to be noted that on the facts of the case before the Uttarakhand High Court, it was a case falling under section 10(23C)(iiiad) where annual receipt does not exceed ₹ 1 crore. Secondly, going by the accounts, prima facie, we are of the view that there is no question of generation of profit though there is accumulation of surplus, but in case the accumulation of surplus is within the parameters, the petitioner is entitled to succeed. In this context, the contention of the learned counsel for the petitioner that going by annexure P-6, there is no accumulation of income has also to be considered. Still further, the contention that the amount of ₹ 15,45,000 which is paid to Ganesh Rice Mill is only return of loan availed of and not distribution of profit to the author of the trust, has also to be examined. According to the petitioner, M/s. Ganesh Rice Mill is not an author of the trust or a contributor to the trust, but only is an unsecured creditor. As has been rightly pointed out by the learned standing counsel, these are the questions of fact which are to be gone into by the Commissioner since, according to the learned standing counsel, there appears to be a situation of manipulation of accounts, whereby the loan has been credited as the capital initially and, thereafter, on return has been shown as repayment of loan. Thus, on an overall view of the situation both on facts and law the matter requires reconsideration by the Chief Commissioner of Income-tax. Matter remitted back
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