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2018 (10) TMI 1305 - HC - Income TaxRevision filed u/s 264 - declining the grant of approval u/s 10(23C)(vi) r.w.s. 11 - whether an educational institution is existing solely for educational purposes or not, has to be considered and decided not merely by mechanically reading and reproducing the relevant provisions of law but by considering the nature of the activity and the hidden principles behind it, which in my considered view, is essential. Held that:- It is not established by the revenue that the petitioner is carrying on any other activities for profit other than running the school. Therefore, when the only predominant activity is being carried on by the petitioner trust, viz.,the running of the school as stated mere spending a meagre amount, out of the total income derived by the trust, towards the distribution of sarees to mothers and grandmothers of children studying in the school, cannot stand in the way of the Assessing Officer to deny the benefit under Section 10(23C) (iiiad). Thus find that the respondents are not justified in rejecting the claim of the petitioner under Section 10(23C) (iiiad) of the said Act. Accordingly, the writ petition is allowed and the impugned order is set aside. Consequently, the respondents are directed to consider the claim of the petitioner under Section 10(23C) (iiiad).
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