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TMI Blog2012 (3) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... assed by the Director General of Income Tax (Exemptions), Delhi („DG‟, for short) denying them exemption under Section 10(23C)(vi) of the Income Tax Act, 1961 („Act‟, for short). The operative portion of the impugned order which also records the reasoning reads as under: - "Perusal of the documents submitted by the applicant reveal that it conducts examinations for ICSE and ISC; awards certificates to those who have passed the examination and conduct other incidental activities. The applicant's income comes from various sources and mainly from sources such as Registration and Affiliation fees, Examination Fees, Re-check & Miscellaneous fees. The above facts indicate that the applicant Council is not an educational i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion reads as under: - "(23C) any income received by any person on behalf of- (vi) any university or other educational institution existing solely for educational purposes and not for purposes of profit, other than those mentioned in sub-clause (iiiab) of sub-clause (iiiad) and which may be approved by the prescribed authority;" 4. Reading of the said provision shows that any University or other educational institution existing solely for educational purposes qualify under the clause. The University and the educational institution should not be for the purposes of profit. The second requirement is negative in nature, whereas the first requirement is positive. We cannot accept the contention of the Revenue and the reasoning given in the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty and was examined by the Supreme Court in Assam State Text Book Production and Publication Corporation Ltd. v. CIT, (2009) 319 ITR 317 (SC). The said corporation was engaged in publication of text books for the students and had claimed exemption under Section 10(22) of the Act. The Revenue disputed and claimed that the corporation was not an educational institution. The Supreme Court reversed the finding of the High Court and held that the said corporation was engaged in educational purposes and, therefore, an educational institution entitled exemption under Section 10(22) of the Act. The said corporation was not engaged or conducting teaching classes or directly imparting education through teachers. In the said case the Supreme Court not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able as the said assessee was in publication business and engaged in sale of books as a business venture. The assessee had therefore claimed exemption on the ground that it was a university and not on the ground that it is an educational institution. For reasons set out in the majority decision, the claim of the assessee was rejected. 7. Recently, the Madhya Pradesh High Court in CIT v. M.P. Rajya Pathya Pustak Nigam, (2009) 226 CTR (MP) 497 examined a similar question and after referring to several decisions has held that the term educational purpose was not restricted merely to holding of teaching class or lectures but educational purpose was equally served when educational text books were published. It is, therefore, clear that courts h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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