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2014 (9) TMI 41 - AT - Income TaxClaim of benefit u/s 10(23C)(iiiab) - Activity educational or not - Whether the assessee society is earning profit year to year and printing and publishing of prescribed text book and providing to the students at a cheaper rate is not an educational activity – Held that:- No part of the surplus generated by the assessee was parted by it for the purpose other than aid to Government schools for construction of building, repairing of building, furniture, scholarships to the students etc. - it has not distributed any profit to anybody in any of the assessment years under consideration - all the shares of the society is with the Government of M.P. and Board of Governors of the Society, his ministers and Secretaries of various Departments of M.P. Government and there is no provision for distribution of profit, in the registration of the society itself – Relying upon Haryana State Counselling Society Versus Chief Commissioner, Income Tax, Panchkula [2010 (5) TMI 170 - PUNJAB & HARYANA HIGH COURT] - merely because an educational institution accumulates income, it does not go out of the purview of Section 10(22)/10(23C)(vi). - there is nothing in the Income Tax Act to support the proposition that educational institution cannot generate any surplus. Entire fund has been invested by the State Government either in the form of initial contribution or through accumulation of surplus, therefore, the assessee was not required to be approved by prescribed authority for the purpose of claim of exemption u/s 10(23-C) - as the object of the assessee society vis-à-vis, its constitution remains the same for the AY 1999-2000 and onwards, the claim of deduction on account of assessee being other educational institution is to be allowed u/s 10(23C)(iiiab). The assessee society was established only for the purpose of advancement of education by printing and publishing of text books as prescribed by the Government - all institutions working in all other States of India were held to be eligible for claim of exemption u/s 10(22) - there was no justification on the part of lower authorities for decline of claim of exemption u/s 10(22)/10(23C) – also in Commissioner Of Income-Tax, Karnataka I Versus Academy Of General Education, Manipal [1983 (8) TMI 18 - KARNATAKA High Court] - the assessee itself need not impart education to the students and it need not be necessarily school or college for the claim of benefit - in its account even though the assessee has not included income of Colleges, established under separate trust - the assessee has given grants to some of those schools, it was held that the assessee was entitled for claim of exemption u/s. 10(22) – Decided in favour of Assessee.
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