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2015 (5) TMI 3 - HC - Income TaxExemption under Section 10 (23C) (vi) refused - Held that:- Evidently, the application itself was filed without the audited accounts for the last three years. The provision of 30th day of September of the assessment year concerned as the cut-off-date for filing of the application has been clearly given so that the balance sheet and audited account of the said year could also be given. The petitioner not only failed to supply initially the audited accounts and balance-sheet for the financial year which pertained to the said assessment year but despite opportunities granted, the same was not produced nor the books of account were shown and thus rejection of the claim on the said ground cannot be said to be contrary to law. The petitioner had approached the Settlement Commission and showed his undisclosed income to the extent of ₹ 4 crores. In this connection it is submitted that the society is systematically generating huge surplus year after year and there is an institutional mechanism through which the society is perpetuating its profit motive every year. It is now well settled that if surplus is generated year after year, it cannot be said to be existing solely for educational purposes and in support of the said proposition learned counsel for the revenue has rightly relied on the decision of Uttarakhand High Court in the case of CIT Vs. Queens' Educational Society and St. Pauls Sr. Secondary School (2007 (9) TMI 347 - UTTARAKHAND HIGH COURT). The said decision has not been assailed by learned counsel for the petitioner. - Decided against assesee.
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