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TMI Blog2006 (11) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Tribunal accepted the assessee-respondent as an educational institution existing solely for educational purposes and thus granted exemption from payment of income-tax under section 10(22) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). These appeals are taken up together for disposal by this common judgment and order as the substantial question of law involved in these appeals are the same. The indispensable facts for disposal of these appeals, in short are that the assessee-respondent is a Government company incorporated under the Companies Act, 1956, under the name and style M/s. Assam State Book Production and Publication Corporation Ltd. In all the relevant assessment years the assessee claimed exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case, the Tribunal was justified and correct in law in holding that the assessee was a non-profit making organisation although the constitutive document under which it was created provided for carrying on of any other trade or business apart from printing and publication of books and also for distribution of dividends amongst its members?" A core question involved for decision in these appeals is whether the assessee can be treated as an educational institution existing solely for educational purpose and not for the purposes of profits within the meaning of the provision of section 10(22) of the Act. Heard Mr. U. Bhuyan, learned counsel appearing for the appellant, and also heard Mr. K.H. Choudhury, learned counsel appearing for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , secondary and teachers' education in the State of Assam and elsewhere prescribed and approved by the competent authorities and/or approved or required by the Government of Assam or other educational authorities, institutions and bodies, statutory or otherwise. 3. To carry on business as publishers and printers in all its branches and of all kinds. 4. To purchase or otherwise acquire, own, establish, either wholly or in part and print, publish, edit and sell, import or export or otherwise deal in any magazines, pamphlets, leaflets, posters, journals, reviews, pictorials, books of all kinds, pictures, atlases and maps, to carry on business of press; to manufacture and deal in pictures, charts. 5.(a) To regulate and fix prices of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy and would not come within the scope of 'other educational institution' as specified in section 10(22) of the Act. The object of the society was to establish, run, manage or assist colleges or schools or other educational institutions solely for educational purposes and in that regard to raise or collect funds, donations, gifts, etc. Colleges and schools were the media through which the assessee imparted education and effectuated its objects. In substance and reality, the sole purpose for which the assessee had come into existence was to impart education at the levels of colleges and schools and so, such an educational society should be regarded as an 'educational institution' coming within section 10(22) of the Act. An educational so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purposes of profit. In Oxford University Press v. CIT reported in [2001] 247 ITR 658, the hon'ble apex court held that (headnote): "The imparting of education is service to the society. From the language of section 10(22), it does not appear that without any such service in India, the Legislature intended to exempt the total income of the assessee. The requirement of imparting education or some other educational activity in this country can be read into section 10(22). That is the basic assumption of section 10(22). A university established in a foreign country is not excluded from the ambit of section 10(22) in case it is imparting education in India or has some educational activity in India. It is evident that for the purposes o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stribute any money belonging to the corporation as dividend or bonus shares among the members of the corporation from time to time and also to contribute to the charitable and other funds which are directly or indirectly related to the business of the corporation or not for the welfare of the employees. In view of the above object, the assessee-respondent is not an educational institution within the purview of section 10(22) of the Act, learned counsel contended. On the other hand, learned counsel appearing for the assessee-respondent refuted the above contention by stating that no dividend or bonus has been distributed to the members of the corporation at any relevant point of time. It is immaterial to examine as to whether the dividend ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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