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2018 (2) TMI 1733 - AT - Income TaxRejection of application u/s 10(23C)(vi) - generation of surpluses out of receipt - excess generated by the applicant is being parked in FDRs - predominant object of the applicant university - Held that:- The argument that as per the statutory provisions, the university is not entitled to expend the money on any other activity and that since it is a government organization, hence, surplus cannot be utilized by the trust members for their personal use or that the surplus ultimately have to be spent on educational activity only, in our view, at this stage is of no help to the applicant university. While granting approval under the relevant provisions of section 10(23C)(vi) of the Act, the Commissioner has to see the activities of the assessee as on date vis-a-vis the accounts and other relevant information. As on date, the applicant university is engaged in the profit making and has accumulated surplus running into thousands of crores of rupees. Though, imparting technical education, is the need of the hour for which the applicant university has been established, but instead of performing its activity in real sense, it has got involved itself in huge profit making. Under the circumstances, it cannot be said that the applicant university is doing activities in the course of fulfillment of its objects. We, therefore, do not find any infirmity in the order of CIT (E) in denying the approval to the assessee-applicant. - Decided against assessee
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