TMI Blog2007 (12) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... acts on record: (a) The appellant was involved in providing transportation facilities and mess activities which were not necessary for running of educational institution. (b) There was no pre-condition that for imparting high quality of education, (sic) increased from year to year as well invested. 3. The order of CIT (A) is thus erroneous in law as well as on the facts of the case. 4. Thus it is prayed that the order of CIT (A) be set aside and the order of AO be restored." 2. We have heard representatives of both the parties and gone through the orders passed by authorities below and also gone through the material furnished during course of hearing. 3. Facts of the issue are that the assessee is engaged in running of school in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d just by referring to the surplus earned by the institution and adopting subjective view about ancillary activities that the institution was existing for the purpose of the profits. According to the CIT (A), merely because some surplus was left after meeting regular expenses, when such surplus was in no way utilized by or diverted to the trustee or other persons connected with the management of institution, it cannot be held that such institution was not existing for the purpose of education and there was profit motive embedded in the activities of the institution. Further, the assessee has furnished ample clarification about the connected activities which are found to be ancillary to the main activities of imparting education and on consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he s. 10(22) of the Act is plain and clear and the availability of the exemption is to be evaluated each year to find out whether the institution existed during the relevant year solely for the educational purposes and not for the purposes of profit. After meeting the expenditure, if any surplus results incidentally from the activity lawfully carried on by the educational institution, it will not cease to be one existing solely for the educational purposes, since object is not one to make profit. The decisive or acid test is whether on an overall view of the matter, the object is to make profit. In evaluating or appraising the above, one should also bear in mind the distinction or difference between the corpus, the objects and the powers of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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