2012 (12) TMI 497

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..... behalf of -     any university or other educational institution existing solely for educational purposes and not for purposes of profit if the aggregate annual receipts of such university or educational institution do not exceed the amount of annual receipts as may be prescribed." 2. The amount of annual receipt has been prescribed at Rs. 1 crore. During the relevant year, the assessee received less than Rs. 1 crore. To that, there is no dispute. The assessee held out that it being an educational institution and is existing solely for educational purposes and not for the purposes of profit, the income it has made out of the receipts will not form part of its total income. The Assessing Officer, having noted the expression " .....

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..... g in latest techniques in the education so that the child does not consider education a burden.     10- To promote extra curricular activities and teach the student local art and crafts.     11- Special stress towards children of ex-servicemen, widows and handicaps, for whom education is a burden.     12- Enlighten through visual and black board ways and means to protect themselves and from contagious and other diseases." 3. The Assessing Officer observed that the said objects of the society make it clear that the society has been established to earn profit as excess of receipt over expenditure will be utilized for religious and charitable purposes. Only a prudent person as that of the Assess .....

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..... the assessee used or is using any part of the excess of receipt over expenditure for any other purpose. The Assessing Officer held that the assessee is not existing solely for educational purposes, but, at the same time, it clearly and in no uncertain terms recorded a finding that the assessee is running a school with Nursery and Kindergarten classes. No other existence of the assessee was noticed. Therefore, the conclusion would be that the assessee was existing for the purpose of running the said school with Nursery with Kindergarten classes and, accordingly, was existing solely for educational purposes and not for purposes of profit. If the existence of the assessee was not for the purposes of profit, but solely for educational purpose, .....

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