2001 (1) TMI 79 - SC - Income Tax

Whether the Oxford University Press, Bombay, which, is part of the Oxford University, is exempt under section 10(22) of the Income-tax Act, 1961?

Held that:- It is evident that for the purposes of granting exemption the Legislature assumed the existence of educational activity in India by a University or other educational institution but did not want to restrict the exemption only to such university or educational institution which is established or constituted or set up in India. That seems to be the reason for not placing limitation as to the setting up of such a body in India. In this view a foreign university would also be entitled to claim exemption so long as it was imparting education in India. The basic requirement of the section is the existence of "education purpose" which, in other words, means the imparting of education which has to be in India. A university established in a foreign country is not excluded from the ambit of section 10(22) in case it is imparting education in India or has some educational activity in India. It is not the case of the assessee nor is there any such finding that the assessee is imparting any education or has any educational activity in India. In this view the assessee is not entitled to claim exemption. Any other interpretation would be absurd and manifestly unjust. The absence of the word "India" in this provision is inconsequential. It has to be read into section 10(22). The literal construction would lead to manifestly unreasonable and absurd consequences as indicated above.

Thus the assessee is not entitled to exemption as held by the High Court. The appeals deserve to be dismissed.