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TMI Blog1984 (6) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... in the constitution of the society : " The aims and objects of the society are to start schools and colleges and to found freeships and scholarships to help deserving students to prosecute their higher studies both at home and abroad. " Clause 28 of the Constitution emphasises that the donations received from public would not be used for objects which are inconsistent with the objects of the society. 4. The first assessment was made for the assessment year 1964-65. The assessee filed revision before the Commissioner under section 264 of the Income-tax Act, 1961 ('the Act'). The revision was allowed and it was held that the assessee was an educational institution within the meaning of section 10(22) of the Act and its income was exempt f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducational institution within the meaning of that expression in section 10(22). He further held that permission to accumulate the surplus was rightly rejected because of the delay in filing notice under section 11(2). 8. Before us, both the findings are challenged by the assessee. It was submitted that running of school or college was not one of the essential conditions for bringing an institution within the ambit of 'educational institution' in section 10(22). Reliance is placed on a decision of the Tribunal to which reference shall be made subsequently. 9. The learned departmental representative had relied on the elaborate reasons given in the order of the Commissioner (Appeals) and cited the decision in Addl. CIT v. Victoria Technical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions' occur in juxtaposition of the word 'university' in section 10(22). The reason which appealed the Commissioner (Appeals) was that since imparting of education was one of the functions of the university, that function should also be present if an institution has to claim that it is an educational institution. We are unable to agree. There have been instances of affiliating universities, i.e., universities having no teaching departments of their own but which conduct examinations and confer degrees. The educational activity may take many forms. Imparting of education may be one of them but not the only one. Grant of scholarship to students to assist them in prosecuting their studies is also an educational activity and an institution whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. If the activities are directed solely for educational purposes, it would be an educational institution. 14. The AAC has strongly relied on the decision of the Supreme Court in Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR 234. In that decision, the question, with which we are concerned, was not involved. The object of the trust in that case was to educate people of India, in general, and of Karnataka, in particular by (a) establishing, conducting and helping, directly or indirectly, institutions calculated to educate the people by spread of knowledge on all matters of general interest and welfare ; (b) founding and running reading rooms and libraries and keeping and conducting printing presses and publishing or enabling pub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years) would be an 'educational institution'. Nothing in the said decision militates against this view. 17. Similarly in Victoria Technical Institute's case relied on by the learned departmental representative, the question before the Court was not whether the institution which had aim of establishing schools and colleges and whose only activity was to grant freeship and scholarship was an 'educational institution' or not. In the trust deed of that case, there were several clauses which indicated that education was not the predominant object. For that reason, it was held that the object was 'general public utility'. 18. The view which we have taken is supported by the decision of the Calcutta Bench of the Tribunal in Saraswat Poor Student ..... X X X X Extracts X X X X X X X X Extracts X X X X
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