TMI Blog1989 (12) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... rise to this reference briefly are as follows ; The assessee is a society registered under the Societies Registration Act, 1860, and is assessed in the status of an association of persons. The assessee runs a school known as "St. Xavier's School", Doranda. While framing the assessment of the assessee for the assessment year 1973-74, the Income-tax Officer upheld the contention of the assessee that the income of the school, run by the assessee, was from an educational institution existing solely for educational purposes and not for the purposes of profit. The Income-tax Officer, therefore, held that the income of the said institution was exempt under section 10(22) of the Act. The order of assessment was, however, set aside by the Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be exempt under section 10(22) of the Act. In reply, it was contended on behalf of the assessee that, in view of the finding of the Tribunal that St. Xavier's School was an educational institution solely run for educational purposes and not for profit, the Tribunal was right in holding that the income of the assessee-society from the school was exempt under section 10(22) of the Act. The short question for consideration is whether the income of the assessee from St. Xavier's School run by the assessee can be held to be exempt under section 10(22) of the Act. The Tribunal has found that St. Xavier's School exists for educational purposes only and not for purposes of profit. Section 10 of the Act provides that, in computing the total in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her educational institutions which fulfils the other requirements of that sub-section, that is to say, the educational institution through which the income is generated must exist solely for educational purposes and the educational institutions be not run for profit. A person may have income from different sources. But if a particular income is from an educational institution or a university which exists solely for educational purposes and not for purposes of profit, then that income or the recipient of the other incomes would be entitled to exemption." I respectfully agree with the aforesaid observations. In the instant case, it has been found by the Tribunal that St. Xavier's School, Doranda, school run by the assessee, was an education ..... X X X X Extracts X X X X X X X X Extracts X X X X
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