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2023 (8) TMI 32 - AT - Income TaxExemption u/s. 10(23C)(vi) - denial of exemption as assessee not carrying out the activities solely for the purpose of education - HELD THAT:- ‘Education’ connotes the process of training and developing the knowledge, etc., of students by normal schooling. The assessee Trust though submitted clarification regarding its medical object but conveniently remained silent on its object of scholarship. The assessee Trust also remain silent regarding its other non-educational objects such to organize Family Planning Centers, undertake activities for upbringing and training for self-reliance to orphan and deserted women and children, etc. Thus it clearly proves that the assessee is not existing “solely for the purpose of education”. The assessee trust has not submitted documentary evidence, which could establish its contention that such scholarships are in fact been used by those students for the purpose of education. Thus the contention of the assessee that the activities of the Trust are only for education is also not correct. The Hon. Supreme Court in the case of Dharamposhanam [1978 (7) TMI 2 - SUPREME COURT] has held that whether a Trust is for charitable purpose or not is to be determined by reference to all the objects for which the trust has been brought into existence and for considering the claim of exemption, the activities under the provisions of its memorandum of association are relevant and not the activity actually conducted by the assessee. Assessee Trust having multiple objects cannot be said to be existing “solely for the purpose of education”. It is open to the trust to pursue all or any of the objects of the trust under the garb of education. Therefore in our considered view, the condition of section 10(23C)(vi) i.e the applicant existing “solely for educational purposes” is not fulfilled in the present case. The case laws relied by the assessee are all from Lower Forums and clearly distinguishable, however we hereby dealt with the judgments of the Hon’ble Apex Court only to arrive our conclusion. Thus we have no hesitation in confirming the denial of exemption u/s. 10(23C)(vi) of the Act to the assessee. Decided against assessee.
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