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2019 (2) TMI 1588 - HC - Income TaxRefusal of exemption u/s 10(22) - Charitable activities - assessee, a charitable institution registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 and running an educational institution - denial of claim as school has not got CBSE recognition and that the property purchased in 1997 is in the name of the Secretary and the Manager of the Trust Satheesh Kumar and his wife, Pushpavally, a teacher in that school respectively - HELD THAT:- Even though it is true that the assessee is running an educational institution, it cannot be said that the society exists solely for educational purposes and not for profit. The Tribunal rightly concluded that the acquisition of property in the name of individuals is indicative of the fact that the profits of the institution was being used for self aggrandizement; which is the explicit motive. The explanation that the property was inadvertently purchased in the name of individuals by an innocuous mistake, can only be taken with a pinch of salt. Also the assessee is a society, formed with many objectives, one of which is imparting education. Hence, the assessee cannot be found to be an institution established and existing solely for educational purposes. The assessee also has declared income from cultural activities, which again reinforces the finding that the object is not solely education. - Decided against the assessee.
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