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2017 (1) TMI 174 - HC - Income TaxExemption from payment of tax under the provisions of Section 10(23C)(iiiab) - Exemption u/s 11 - charitable activity - proof of working of school or purposes of education - Held that:- In exercise of powers conferred by the sub-clause (vi) of the Clause (23C) of Section 10 of the Income Tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes vide order dated 23.3.2007 hereby approves that an income received by any person on behalf of “M/s. Model Public School Society, Opp Ashiana Green, Bhiwadi” (hereinafter the “Institution”) shall not be included in the total income of such person as assesseable. The Supreme Court in the case of Visvesvaraya Technological University vs. Assistant Commissioner of Income Tax [2016 (4) TMI 874 - SUPREME COURT], in para 6 has held as under: The relevant principles of law which will govern the first issue i.e. whether an educational institution or a university, as may be, exists only for educational purpose and not for profit are no longer res integra, having been dealt with by a long line of decisions of this Court which have been elaborately noticed and extracted in a recent pronouncement i.e. Queen's Educational Society v. Commissioner of Income Tax [2015 (3) TMI 619 - SUPREME COURT ] wherein held as Where an educational institution carries on the activity of education primarily for educating persons, the fact that it makes a surplus does not lead to the conclusion that it ceases to exist solely for educational purposes and becomes an institution for the purpose of making profit. If after meeting expenditure, a surplus arises incidentally from the activity carried on by the educational institution, it will not be cease to be one existing solely for educational purposes. - Decided in favour of assessee
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