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TMI Blog2017 (8) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... bring on record any contrary material to the fact. The assessee is also covered within the provisions of Sec.10(23C)(vi) for grant of registration because in the Act, the institution has not been categorized and it has to be given a general meaning as specified in the dictionary. Excess accumulation in the instant case has certainly applied for the objects of the society itself, therefore, we do not find any hesitation to allow the registration to the assessee society U/s 10 (23C)(vi) of the Act. - Decided in favour of assessee. - I.T.A. No.469(Asr)/2016 - - - Dated:- 11-8-2017 - SH.T.S. Kapoor And SH.N.K.Choudhry, JJ. Appellant by: Sh. J.K.Gupta (Ld. CA) Respondent by: Sh. Rahul Dhawan (Ld. DR) ORDER N. K. Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and to arrange all kind of financial help to needy students, to promote education (Elementary as well as vocational education) for children without any restriction of sex, caste, creed community and faith of the students, to reform, spread all kinds of education for the benefit of people of are and to start, run existing and/or new school, college, library or any other educational institution/centre keeping there objects in kind, to provide guidance to organizations engaged in the promotion of education, do to or to perform any other act which may be incidental or conducive to the attainment of main object of the society. The application U/s. 10(23C)(vi) of the I.T. Act was filed before the Ld. CIT(E) on 13.08.2015 while claiming the exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are required to be redeployed in education and the facts of such redeployment would vary from case to case. The applicant in this case apart from charging fees under several additional heads in addition to admission fee has also resorted to pursuing several other methods, which were better left to commercial enterprises, to generate income and passing them off as charitable. Notwithstanding the fact that the above doesn't exemplify the criteria of solely for education and not for profit it is also true that the applicant in this case is a society and not a University or other educational Institution and to that extent not covered by the provisions of section 10(23C)(vi). The application under Section 10 (23C) (vi) for grant of registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase of the land for further development of the School. 5. On the contrary the Ld. DR submitted that the order passed by the CIT(E) is legal, reasonable, logical and speaking order and does not required to be interfered with and drown our attention to the judgment passed by the Jurisdictional High Court in the case of Dr. Maharaj Krishana Kapur Educational Charitable Trust Management Society vs. Union of India, [Civil Writ Petition No.2047 of 2009] citation 2010(326 ITR 0385) and submitted that excess accumulation has to be applied for the objects of the society and if the percentage of income applied for educational purpose is less than the limit prescribed under clause-(a) of third proviso to Sec.10(23C), then the exemption can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es not lead to the conclusion that it ceases to exist solely for educational purposes and becomes an institution for the purpose of making profit. 2. The predominant object test must be applied-the purpose of education should not be submerged by a profit making motive. 4. A distinction must be drawn between the making of a surplus | and an institution being carried on 'for profit'. No inference arises ' that merely because imparting education results in making profit, it becomes an activity for profit. 5. If after meeting the expenditure, a surplus arises incidentally from the activity carried only the educational institution, it will not; cease, to be one existing solely for educational purposes. 6. The ultimate tes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing defined in the Webster s New Dictionary, the word Institution means an established or organized Society or Corporation, an establishment, especially one of Public Character, or one effecting a community; a Foundation. Further, this Tribunal, Delhi Bench G Bench in I.T.A.NO:3360(DEL) of 2008 dated 30.04.20 10 in deciding the Appeal in the case St.Thomas Girls Senior Secondary School, New Delhi Vs. Director of Income Tax(Exemption), New Delhi have held that the word Institution is wide enough to include a school, which has been established for imparting Education. Merely because the Assessee School does not have power to purchase, acquire, or sell the property, does not mean that the school will cease to exist as an Institution. Thus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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