9911796707
TMI Blog2003 (2) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... , Nagpur, is exempt under section 10(22) of the Income-tax Act, 1961, for the relevant years involved in the appeals?" The facts: The Vidya Vikas Vihar, Nagpur, is a registered society registered under the Maharashtra Co-operative Societies Act and it is engaged in imparting technical education to the students. The said institute is being run on no grant-in-aid basis. The said institute is imparting training in the discipline of engineering technology. The dominant object of the respondent educational institution is to open and run college of polytechnic to impart technical education. One of the objects shown in the constitution of the society is to construct houses for weaker sections of the society, if anything remains surplus after inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is an educational institution existing solely for educational purposes and not for the purposes of profit as such, the said institution was exempted under the provisions of section 10(22) of the Act in the relevant assessment years involved in the appeal. Consequently, all the appeals were allowed by the Tribunal by setting aside the order of the Commissioner of Income-tax (Appeals) whereunder the orders of the Assessing Officer in refusing to grant exemption were confirmed. Consideration: We have heard the parties at length. The question of exemption from income-tax of profits to the educational institution has been a perennial teaser for the assessee as well as the judiciary. There are various situations in which the question arises. U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause (22) of section 10 of the Act. In other words, this court was pleased to hold that what is exempt is "the income of a university or an educational institution existing solely for educational purposes and not for the purpose of profit". Thus, according to this the condition precedent for exemption under section 10(22) of the Act is the existence of the institution solely for educational purposes and not for the purposes of profit. This judgment has also been affirmed by the apex court in the case of Oxford University Press v. CIT [2001] 247 ITR 658. Similarly, the apex court had also an occasion to consider the scope of section 10(22) of the Act in Aditanar Educational Institution v. Addl. CIT [1997] 224 ITR 310 wherein the apex court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ented or acted upon by the assessee in the relevant assessment year. Under these circumstances no fault can be found with the findings recorded by the Tribunal. The view taken by the Tribunal is absolutely in accordance with law and in consonance with the view taken by the apex court in Aditanar Educational Institution's case [1997] 224 ITR 310. It would be necessary for the assessee to file return every year and to demonstrate that the educational institution existed during the relevant year solely for educational purposes and not for purposes of profit. In the above view of the settled legal position, no fault can be found with the impugned order of the Tribunal impugned in this appeal. In the result, the appeals are dismissed with no o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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