TMI Blog2016 (6) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... ican Hotel and Lodging [2008 (5) TMI 17 - SUPREME COURT OF INDIA], would all apply to determine whether an educational institution exists solely for educational purposes and not for purposes of profit. Also to add that the 13th proviso to Section 10(23C) is of great importance in that assessing authorities must continuously monitor from assessment year to assessment year whether such institutions continue to apply their income and invest or deposit their funds in accordance with the law laid down. Further, it is of great importance that the activities of such institutions be looked at carefully. If they are not genuine, or are not being carried out in accordance with all or any of the conditions subject to which approval has been given, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) No. 12062/2016. For The Appellant : Mr. K. Radha Krishnan, Sr. Adv., Ms. Anita Sahani, Adv., Mr. Arjit Prasad, Adv., Ms. Purnima Bhatt, Adv., Mrs. Anil Katiyar,Adv., Mr. B. V. Balaram Das,Adv. For The Respondent : Ms. Sujata Kurdukar,Adv., Mr. Satyen Sethi, Adv., Mr.Arta Trana Panda, Adv., Mr. Rohit Kaura, Adv., Mr. Rajiv Sharma, Adv., Mr. Arna Das, Adv., Mr. Rameshwar Prasad Goyal,Adv., Mr. Pankaj Jain, Sr. Adv., Mr. Gaurav Mittal, Adv., Mr. Deepanshu Jain, Adv., Ms. Namita Choudhary,Adv., Mr. Mayank Nagi, Adv., Ms. Mahua Kalra,Adv., Ms. Husnal Syali, Adv., Mr. Subramonium Prasad,Adv., Mr. Nikhil Goel,Adv., Ms. Naveen Goel, Adv., Mr. Ashuthosh, Adv., Dr. Rakesh Gupta, Adv., Mr.Somil Agarwal, Adv., Mr. Ambhoj Kumar Sinha,Adv., Ms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under: 11. Thus, the law common to Section 10(23C) (iiiad) and (vi) may be summed up as follows: (1) Where an educational institution carries on the activity of education primarily for educating persons, the fact that it makes a surplus does not lead to the conclusion that it ceases to exist solely for educational purposes and becomes an institution for the purpose of making profit. (2) The predominant object test must be applied the purpose of education should not be submerged by a profit making motive. (3) A distinction must be drawn between the making of a surplus and an institution being carried on for profit . No inference arises that merely because imparting education results in making a profit, it becomes an activity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissed. We reiterate that the correct tests which have been culled out in the three Supreme Court judgments stated above, namely, Surat Art Silk Cloth, Aditanar, and American Hotel and Lodging, would all apply to determine whether an educational institution exists solely for educational purposes and not for purposes of profit. In addition, we hasten to add that the 13th proviso to Section 10(23C) is of great importance in that assessing authorities must continuously monitor from assessment year to assessment year whether such institutions continue to apply their income and invest or deposit their funds in accordance with the law laid down. Further, it is of great importance that the activities of such institutions be looked at carefully. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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