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TMI Blog2000 (12) TMI 22X 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". It is the case of the Revenue that the word "existing" in this clause mandates that the institution which claims the benefit of this provision must have been functioning as an educational institution in the previous year relevant to the assessment year. Learned counsel referred to the decision of this court in the case of CIT v. Devi Educational Institution [1985] 153 ITR 571. The question there was as to whether the Tribunal was right on the facts of that case in excluding the donations paid to Devi Educational Institution on the ground that an educational institution had not been established by it in the previou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of the other High Courts have placed a broader construction on the provision. Attention was invited to the decision of the Calcutta High Court in the case of CIT v. Doon Foundation [1985] 154 ITR 208. It was found by the court in that case that the assessee therein had taken all the preliminary steps including purchase of books and periodicals for imparting education, though the actual conduct of the classes had not begun during the relevant previous year. Having regard to the fact that the objects of the society were solely educational, and the society was not established for the purpose of making profit, and the further fact that the preliminary steps had been taken to commence the educational activity, it was held that the institution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto existence educational institution, for which preliminary steps have been taken, and the object of the institution is not profit. We are of the prima facie view that the width of the provision is not required to be cut down by insisting that the educational activity must have been carried on in the relevant previous year, even though there is no doubt whatsoever that the society was engaged in taking the steps required to make the educational activity operative, the steps so taken being the construction of the buildings and other facilities in which the task of imparting the education was to be carried out. We also see considerable force in the view expressed in the judgment of the Kerala High Court which has rightly pointed out that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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