TMI Blog2000 (8) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Act, 1961?" The factual position in a nutshell is as follows. The assessee is a society registered under the Societies Registration Act, 1860 (in short "the Registration Act"). It runs a primary school, a middle school and a higher secondary school. It claimed its income to be exempt under section 10(22) of the Act. The Assessing Officer accepted the assessee's claim for exemption in relation to its middle and higher secondary schools. But as regards the primary school he noted that it was unaided and had substantial income and, therefore, it had to be taken that it was run for profit. That being the position, the assessee's claim for exemption under section 10(22) of the Act was rejected. The matter was carried in appeal b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... courses, to prescribe rules and regulations for and to hold examinations and declare the results and to award diplomas or certificates ; (iv) to supervise the residences, progress, health and discipline of the students ; (v) to co-operate with any other organisation with similar objectives in the matter of general education and training ; and (vi) to do all such other acts and things which the society may consider necessary, conducive or incidental to the attainment or enlargement of the aforesaid objects or any one of them." In terms of clause 5 of the memorandum no portion of the income and property of the society could be transferred directly or indirectly in any manner to the members of the society, past or present or anyone cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f exemption to an educational institution under section 10(22) of the Act are as follows : (a) The educational institution must actually exist for application of the said provision and mere taking of steps would not be sufficient to attract the exemption. (b) The educational institution need not be affiliated to any university or Board ; in fact a society need not itself be imparting education and it is enough if it runs some schools or colleges ; (c) The educational institution must exist solely for educational purposes and not for purposes of profit. But, merely because there is a surplus, that is to say a surplus of receipts over expenditure it cannot be said that the educational institution exists for profit ; (d) An entity may ..... X X X X Extracts X X X X X X X X Extracts X X X X
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