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TMI Blog2017 (12) TMI 1324X X X X Extracts X X X X X X X X Extracts X X X X ..... d CIT(E) erred in holding that the object of admitting children engaged in child labour for education as not an object connected to education on the ground that the Society runs only a Pharmacy College without appreciating the legal position that the Society need not confine itself only to running Pharmacy college but could open other educational institutions and further that the decision in the case of Nobel Educational Society of the A.P. High Court in fact supports giving approval where the objects are ancillary to the object of Education". Ground No.3 is general in nature. 2. Briefly stated, assessee is a trust and is recognized u/s. 12A of the Income Tax Act [Act]. Assessee runs a pharmacy college. It filed an application seeking ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jects, they would still be disentitled to the benefit of being exempted u/s.10(23C)(vi) of the I.T.Act, 1961, as the exemption there under is available only to educational institution whose existence is solely for the purposes of education.' Thus the assessee has not fulfilled one of the prerequisite conditions laid down under section 10(23C)(vi) of I.T. Act, 1961. 6. In view of the foregoing, the application seeking approval u/s. 10(23C)(vi) of the I.T. Act, 1961 submitted by M/s. Ganga Educational Society, Nizamabad, Telangana for Assessment Year 2015-16 cannot be entertained and accordingly stands rejected". 3. Contesting the above, it was the contention that the said object is an ancillary object and the decision of the Hon' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be characterized as those whereby the educational institution can be said to exist solely for the purposes of education- Publication of journals, magazines, or other media for diffusion of useful knowledge for promotion of education is incidental and ancillary to the primary object of the society i.e., to run an educational institution-To conduct seminars, symposiums, workshops and invite experts from India and abroad to improve the quality of education and to support students to elevate themselves to international standards is also incidental and ancilliary to the primaray object of education Held : If there are several objects of a society some of which relate to "education", and others which do not, and the trustees or the manage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iftment of the socially and economically weaker sections of the society, cannot be characterized as those whereby the educational institution can be said to exist solely for the purposes of education. Even if the applicants have not applied their income to achieve these non-educational objects, they would still be disentitled to the benefit of being exempted under s. 10(23C)(vi) as the exemption thereunder is available only to educational institutions whose existence is solely for the purposes of education. The aforesaid objects are neither integrally connected with, nor are they ancillary or incidental to, the primary object of "education". On a conjoint reading of sub-ss. (3) and (4) of s. 8 of A.P. Act 35 of 2001, it is only when the ame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd abroad to improve the quality of education and to support students to elevate themselves to international standards", which the prescribed authority held not to be for the purposes of education, is incidental and ancillary to the primary object of carrying on educational activities by the educational institution. The Chief CIT was, therefore, not justified in rejecting the petitioner's application on this ground. (Paras 35 & 36) Conclusion : If the primary or dominant purpose of an institution is "educational", another object which is merely ancillary or incidental to the primary or dominant purpose would not disentitle the institution from the benefit of exemption under s. 10(23C)(vi); the test which has, to be applied is w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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