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2022 (7) TMI 801 - HC - Income TaxExemption u/s 11 - proof of hostel facilities as object of educational activities performed by the society - charitable activity u/s 2(15) - hostel being run by the respondent-assessee, cannot be treated as charitable activity and it is not necessary for functionality of the educational institution - HELD THAT:- Tribunal has recorded specific finding that in the absence of any evidence to show that the hostel facilities were provided to anybody other than students and staff of the trust, the hostel facilities provided by the educational institution shall be construed to be the intrinsic part of the 'educational activities' of the assessee and they cannot be considered different than activities of the society of 'education. It has been further observed that undisputedly the assessee is carrying out educational activity and running various colleges, especially Medical Colleges and Charitable Hostels and thus income from charitable activities was nil. The assessee is also running hostels for the students as per the UGC Guidelines which is an ancillary activity. The Tribunal has relied upon judgment in the case of Krishna Chatirtable Society [2017 (9) TMI 1030 - ITAT DELHI] wherein it has been observed that providing of hostel facilities and transport facilities to the student and staff member of the educational Institute cannot be considered as business activity but as subservient to the object of educational activities performed by the society. - Decided in favour of assessee.
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