TMI Blog1987 (8) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... parate assessable entity under the income-tax law ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee-trust was not an educational institution within the meaning of section 10(22) of the Act ? " This reference arises out of the return filed by the assessee, Agarwal Shiksha Samiti Trust, Jaipur, for the assessment year 1973-74. The assessee-trust was formed by a trust deed dated July 31, 1958, which was registered on October 29, 1958, with the Sub-Registrar, Jaipur City. The assessee claimed exemption of income as per the provisions of section 10(22) of the Act. The learned Income-tax Officer found that, the assessee-trust has been giving donations to Agarwal Shiksha Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Tribunal and it was contended that the authorities below had wrongly interpreted section 10(22) of the Act as also the provisions of the trust deed dated July 31, 1958. Learned Tribunal held that from the material on record it is proved that since the assessee-trust does not actually run any educational institution within the meaning of the words " university or other educational institution " existing solely for educational purposes, the authorities below had rightly held that the assessee-trust is not entitled to exemption under section 10(22) of the Act. We have heard Shri V. K. Singhal, learned counsel for the assessee, and Shri R. N. Surolia, learned counsel for the Revenue, and have also gone through the material on reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons. It was pointed out by learned counsel that the word " education " used in section 10(22) has a much wider sense than the word used in section 2(15) of the Act. It is further contended that since the assessee-trust is collecting donations solely, with the object of disbursing the same for running the educational institutions run by Agarwal Shiksha Samiti, it is only natural that it will maintain separate accounts for that purpose. It was pointed out by learned counsel that the trust deed dated July 31, 1958, which is t duly registered document, clearly shows that the only purpose for which the assessee-trust has been formed was to see that whatever funds the trust possesses shall be used for promotion of the educational institutions run ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter of CIT v. Doon Foundation [1985] 154 ITR 208 (Cal), it was pointed out that " sub-section (22) of section 10 of the Income-tax Act, 1961, provides that any income of a university or other educational institution existing solely for educational purposes and not for purposes of profit will not be included in the total income. If the educational institution exists solely for educational purposes and not for purposes of profit, in that event, the fact that the recipient or owner of the income is person other than the educational institution or university, would not affect the position. The word `institution' has not been defined in the Act. A society registered under the Societies Registration Act whose primary objects are to establ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l entity and maintains separate accounts and does not run a school or a college, it is not entitled to exemption under the provisions of section 10(22) of the Act. It was further pointed out that the assessee-trust is only receiving and disbursing donations for the educational institutions run under the auspices of Agarwal Shiksha Samiti and, therefore, evidently, it will be incorrect to say that it is an institution like a college or university, which solely exist for educational purposes. Our attention has been drawn to the case of Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR 234 (SC). This was a case of a charitable trust for running newspapers and journals. The trust was also carrying on the business of printing and, inter a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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