TMI Blog2017 (5) TMI 1620X X X X Extracts X X X X X X X X Extracts X X X X ..... UPREME COURT] in the facts of the present case, it is quite vivid that the conditions precedent for invoking Section 10 (23C)(vi) of the Act, 1961 has not been considered by Chief Commissioner of Income Tax in its proper perspective and, therefore, I deem it expedient to set aside the impugned order and remit back the matter to the Chief Commissioner of Income Tax to decide the petitioner's application afresh - W.P. ( T ) No. 1516 of 2011 - - - Dated:- 4-5-2017 - Shri Sanjay K. Agrawal J. For the Petitioner : Mr. Neelabh Dubey, Advocate. For the Respondent : Ms. Nausina Afrin Ali, Advocate. ORDER Heard. (1) This petition is directed against the order order dated 24.12.2009 passed by Chief Commissioner of Income Tax, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would submit that there is no finding that income obtained from the educational institution is being used for non-educational purposes and the decision relied upon by the learned Commissioner i.e. M/s Queen's Education Society, Nainital(supra) while passing the impugned order has been reversed by the Supreme Court in case of Queen's Educational Society Vs. Commissioner of Income Tax (2015) 8 SCC 47 . He also relied upon the decision of Cacutta High Court Court in the matter of Birla Vidhya Vihar Trust Vs. Commission of Income Tax, Central I, Calcutta 1982 ITR Vol. 36 page 445 in support of his case. (6) Per contra, learned counsel appearing for the respondent would submit that there is clear cut finding recorded by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave held as under:- 11. Thus, the law common to Sections 10(23-C)(iii-ad) and (vi) may be summed up as follows: (1) Where an educational institution carried 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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