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2023 (5) TMI 283 - SC - Income TaxExemption u/s 10(23C)(vi) - Commissioner was of the opinion that the activity of the respondent-assessee cannot be said to be solely for imparting the education and, therefore, not entitled to the benefit/exemption under Section 10(23C)(vi) - HC allowed exemption - HELD THAT:- In the recent decision of this Court in the case of New Noble Educational Society [2022 (10) TMI 855 - SUPREME COURT] it is specifically observed and held by the three-Judge Bench of this Court that for claiming the benefit/exemption u/s 10(23C)(iii)(ab) which is para materia to Section 10(23C)(vi) the activity of the assessee must be be solely for educational purposes and if ultimately it is found that the activity is for profits the assessee is not entitled to the exemption u/s 10(23C)(vi) of the Act. Applying the law laid down by this Court in the case of New Noble Educational Society (supra) the impugned judgment and order passed by the High Court is unsustainable. It is required to be noted that taking into consideration the entire material on record, in fact, the Commissioner, while considering the application of the assessee for grant of exemption u/s 10(23C)(vi) specifically observed and held that the activity of the assessee cannot be said to be solely for imparting the education and that the assessee is indulging into the profit which was found to be 67.81% without depreciation and 44.48% with depreciation. The finding of fact recorded by the Commissioner, as such, not been upset by the High Court in the impugned judgment and order. The present Appeal succeeds. The impugned judgment and order passed by the High Court deserves to be quashed and set aside and is, accordingly, quashed and set.
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