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2022 (3) TMI 1288 - HC - Income TaxApplicability of provisions of Sec.10(23C)(vi) introduced only w.e.f. 1. 4.1999 - HELD THAT:- As prior to its re-enactment as Section 10 (23C) (vi) of the Act, the very same provision existed in the statute book as Section 10 (22) of the Act. In other words, what was in fact referred to both by the Assessing Officer (AO) and the CIT (A) as far as the present case is concerned, was Section 10 (22) of the Act and not Section 10 (23C) (vi) of the Act. The latter provision was mentioned as Section 10(22)/10(23C) (vi) only to indicate that the same provision has been reenacted as Section 10 (23C) (vi) of the Act with effect from 1st April, 1999. This is not to say that reliance is placed on the re-enacted provisions. Consequently, as far as Question No.(ii) is concerned, the Court finds nothing erroneous in the order of either the CIT (A) or the ITAT. The issue is decided in favour of the Assessee and against the Department. Approval to the Institution u/s 10(23C)(vi) - whether the income earned by the Trust was exclusively from educational activities? - HELD THAT:- Present case does not involve grant of approval by the CCIT, the general proposition in law that the word ‘solely’ appearing in Section 10(23C)(vi) of the Act emphasizes that the income of the Institution has to be from activities which are solely educational and not commercial activities, if the income has to be exempted from tax. This Court was reiterating the settled legal position in this regard as explained in Aditanar Educational Institution v. Additional Commissioner of Income Tax [1997 (2) TMI 3 - SUPREME COURT] followed in American Hotel and Lodging Association Educational Institute v. Central Board of Direct Taxes,[2008 (5) TMI 17 - SUPREME COURT]. The decision of the High Court of Punjab and Haryana in Pinegrove International Charitable Trust v. Union of India, [2010 (1) TMI 49 - HIGH COURT OF PUNJAB AND HARYANA AT] and of this Court in The Commissioner of Income Tax v. Silicon Institute of Technology [2014 (11) TMI 588 - ORISSA HIGH COURT] are all to the same effect. While the legal position is clear, each of these cases turned on the peculiar facts on whether the income earned by the institution involved in those cases was from activities which were solely and exclusively ‘educational’. In the present case, the concurrent findings of the CIT (A) and the ITAT that the income earned by the Assessee was from solely educational activity and not commercial activity appears to be based on a proper analysis of all the materials available on record and, therefore, the Court is unable to agree with the contention of the Revenue that either order requires interference. Questions Nos. (i) and (iii) are answered accordingly in favour of the Assessee and against the Revenue.
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