9911796707
TMI Blog2003 (2) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... 03 - Judge(s) : V. C. DAGA., V. M. KANADE. JUDGMENT The judgment of the court was delivered by V.C. DAGA J. -Heard finally by consent of parties. In this batch of six appeals filed at the instance of the Revenue, the following common reframed substantial question of law with respect to the scope of section 10(22) of the Income-tax Act, 1961 (for short, the "Act"), arises for consideration: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that income of M/s. Vidya Vikas Vihar, Nagpur, is exempt under section 10(22) of the Income-tax Act, 1961, for the relevant years involved in the appeals?" The facts: The Vidya Vikas Vihar, Nagpur, is a registered society registered under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f a university or other educational institution, existing solely for educational purposes and not for purposes of profit;" was exempted. On the aforestated facts and in the backdrop of the aforesaid statutory provision, the Tribunal was pleased to hold that the dominant object of the society is only to impart technical education to the students. The supplementary object to provide houses to weaker sections has never taken place and the institution never tried to pursue it. Based on this finding, the Tribunal held that the respondent/assessee is an educational institution existing solely for educational purposes and not for the purposes of profit as such, the said institution was exempted under the provisions of section 10(22) of the Act i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted provided it exists solely for educational purposes and not for purposes of profit. It was thus held that the above provision clearly spells out that for the purpose of exemption under this provision, it is not necessary that the assessee should be a university or educational institution. The character of the assessee is not material. He may be "any person" including a person engaged in business or profession and even then he would be entitled to exemption under section 10(22) of the Act in respect of any income falling within the scope of clause (22) of section 10 of the Act. In other words, this court was pleased to hold that what is exempt is "the income of a university or an educational institution existing solely for educational pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the High Court to the effect that, the applicability of section 10(22) should be evaluated or investigated every year and only if it was found that the "institution" existed for educational purposes in the relevant year in that event even if any profit is resulted; may be incidental to the purpose of education; even then such income would be exempted. In the instant case, it is not in dispute that the assessee-institution solely existed for educational purposes. The incidental object of constructing houses for weaker sections was never implemented or acted upon by the assessee in the relevant assessment year. Under these circumstances no fault can be found with the findings recorded by the Tribunal. The view taken by the Tribunal is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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