TMI Blog1994 (11) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... tuted by a deed dated September 1, 1977. The objects of the trust are to provide for: " (a) Institutions for spreading faith in God, the consciousness of the basic identity of religions, the spirit of religious and universal brotherhood. (b) Educational institutions of any kind either general, vocational, pedagogic or otherwise. (c) Hostels, boarding houses and camps for students, teachers a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med exemption under section 10(22) of the Income-tax Act, 1961, in respect of the income so received. The assessing authority, however, rejected the claim. The Commissioner (Appeals) took a different view and held that the entire income was exempt, inasmuch as the assessee was running only educational institutions and had no other source of income. The institutions were also not run for purposes o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ince a surplus had been generated from the running of the schools, the institution must be treated as one run for profit. We find it difficult to agree with either of these submissions. It is true that the objects of the trust comprehend various items. But admittedly the trust is running only the two educational institutions referred to earlier. The objects clause has no doubt delineated in grea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and the surplus earned from the schools is ploughed back into the schools themselves for their educational and developmental purposes. What is relevant under section 10(22) is the source of the income, whether it has been derived from an educational institution existing solely for educational purposes. The schools in question are not used for any other purposes. They, therefore, exist solely for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rporation of Delhi v. Children Book Trust [1992] 3 SCC 390; AIR 1992 SC 1456, which militates against the view we have taken. All those cases dealt with the scope and effect of the term "charitable purpose" and as to what exactly was charity. They have no application to this case where the claim is under section 10(22). We do not find any error in the order of the Tribunal and no referable quest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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