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2012 (8) TMI 645 - HC - Income TaxDenial of grant of approval for exemption u/s 10(23C)(vi) - assessee was engaged in non-educational activities like horticulture - whether the petitioner Trust is existing solely for educational purpose and not for the purpose of profit - Held that:- In Section 10(23C)(vi) emphasis has been given on the word "solely" for educational purposes. Solely means exclusively, thus the only the income of the institution established solely for educational purposes and not for commercial activities is entitled for exemption - as the said order is totally silent as to what is the nature and magnitude of horticultural activities carried on by the assessee and what is its annual income and how it is utilized by the assessee thus accepting the assessee's contention with regard to horticultural income,as that there were standing coconut and mango trees in the land acquired by the petitioner for establishment of the educational institution and order to maintain a salubrious and green environment the trees were not cut down but maintained. The petitioner has reflected the receipt in its income and expenditure account. Amount of Rs.15,000/- received has been utilized in the educational activities of the institutions and for infrastructural development. Therefore, it cannot be treated that the profit was earned for non-educational activities - in favour of assessee. Excess collection of fees for placement and training - Held that:- The Chief Commissioner has relied on the Government of India resolution providing for fee structure, 1997 and the Government of Orissa Industries Department Resolution dated 17.09.1998 to come to a conclusion that the fees collected towards "placement and training" is in excess of what was prescribed by the said resolutions which is no more holds the field in view of the Act, 2007 and the order of the Hon'ble Supreme Court P. A. Inamdar and others Versus State of Maharashtra and others [2005 (8) TMI 614 - SUPREME COURT ] constituted the policy planning body and so also the "Fee Structure Committee" and directed that other provisions of the Act shall continue to be in force and subsequent notification vide Annexure-4 issued by the Industries Department. That on the issue of deciding whether an institution is existing for profit or not, the mere excess of income over expenditure cannot be decisive - The institutions are obliged to see the placements of their students as per the AICTE Guidelines and train them accordingly. The fee for the same has been permitted to be collected which is for educational purpose - the matter is remitted back to the Chief Commissioner to re-examine the case of the petitioner whether the fees collected under head "placement and training" is in consonance with the Act, 2007 - in favour of assessee by way of remand.
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