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TMI Blog2014 (10) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... that there is some profit does not disqualify the petitioner if the sole purpose of existence was not profit making but educational activities - The authority has to find out the predominant object of the activity and see whether the institution exists solely for education and not to earn profit - Merely because some profit arises from its activity will not mean that the predominant object of the activity is to earn profit and that it is not an educational activity - the threshold conditions are actual existence of an educational institution and approval of the prescribed authority for which every applicant has to move an application in the standardised form in terms of the first proviso – thus, the order of the Tribunal is to be set aside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner is required to make an application before the Chief Commissioner of Income Tax for grant of a certificate of registration. The petitioner, accordingly, applied for registration in the prescribed format, which was rejected by an order of the Chief Commissioner of Income Tax dated 16th August, 2011 on the ground that the petitioner society as per the memorandum of association has several other objects, which are not related to educational purpose. The Chief Commissioner of Income Tax, accordingly, rejected the application relying upon the decision of the Andhra Pradesh High Court. The petitioner, being aggrieved by the said order, has filed the present writ petition. In Ewing Christian College Society Vs. Chief Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) shall make an application in the prescribed form and manner to the prescribed authority for the purpose of grant of the exemption, or continuance thereof, under sub-clause (iv) or sub-clause (v) [or sub-clause (via)]: Second Proviso: - Provided further that the prescribed authority, before approving any fund or trust or institution or any hospital or other medial institution, under sub-clause (iv) or sub-clause (vi) or sub-clause (via), may call for such documents (including audited annual accounts) or information from the fund or trust or institution or any university or other educational institution or any hospital or other medical institution, as the case may be, as it thinks necessary in order to satisfy itself about the genuinene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the third proviso; or (ii) the activities of such fund or institution or trust or any university or other educational institution or any hospital or other medical institution - (A) are not genuine; or (B) are not being carried out in accordance with all or any of the conditions subject to which it was notified or approved, it may at at any time after giving a reasonable opportunity of showing cause against the proposed action to the concerned fund or institution or trust or any university or other educational institution or any hospital or other medical institution, rescind the notification or, by order, withdraw the approval, as the case may be, and forward a copy of the order rescinding the notification or withdrawing the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The requirement mentioned in the third proviso can only be tested after the end of the previous year when income is ascertained and thereafter applied. Further, the Supreme Court held that the authority is only required to examine that the petitioner's institution comes within the phrase exists solely for the educational purpose and not for profit . Other conditions like application of income is not to be examined at this stage. The authority is only required to examine the nature, activities and genuineness of the institution. The mere existence that there is some profit does not disqualify the petitioner if the sole purpose of existence was not profit making but educational activities. The authority has to find out the predominant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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