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TMI Blog2010 (11) TMI 1073X X X X Extracts X X X X X X X X Extracts X X X X ..... that their objects are not solely for the purposes of education. It would suffice for the disposal of these writ petitions if the objects of the petitioners societies in each of the writ petitions are noted. In W.P.No.12076 of 2010 the objects of the petitioner society include to install and establish and run gymnasiums, impart physical education, develop sports of all kinds, construct a stadium of modern type and to maintain the same ; in W.P.No.26976 of 2010 the objects of the petitioner society include to encourage social, educational and literary activities among Marathi students; to conduct cultural programmes, help for poor people of the Marathi people for their study ; in W.P.No.27559 of 2010 the objects of the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1st respondent had erred in rejecting the petitioners application, on the ground that their objects included those not solely for the purposes of education, would the question of directing the 1st respondent to consider imposing the condition of registration under A.P. Act 30 of 1987, subject to which approval may be granted, arise. If, on the other hand, the order of the 1st respondent is required to be upheld, on the ground that the objects aforementioned are not solely for the purposes of education, rejection of the petitioners applications would be valid, and no useful purpose would be served in directing the 1st respondent to consider the matter afresh regarding registration of the petitioners societies under A.P. Act 30 of 1987. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2010) 327 ITR 121 (Bombay)]). Even if one of the objects enables the institution to undertake commercial activities, it would not be entitled for approval under Section 10(23-C)(vi) of the Act. (American Hotel Lodging Association Educational Institute v. CBDT[(2008) 301 ITR 86 SC]). It is only if the objects reveal that the very being of the assessee-society, as an educational institution, is exclusively for educational purposes and not for profit, would the assessee be entitled for exemption under Section 10(23-C)(vi) of the Act. (Gurukul Ghatkeswar of Hyderabad[Judgment of APHC DB in R.C. No.35 of 1996 dated 29.09.2010). In case of a dispute, whether the claim of the assessee to be exempted from tax is admissible or not, it is neces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r property to any of those objects, the institution would not be liable to be regarded as one existing solely for educational purposes, and no part of its income would be exempt from tax. In other words, where the main or primary objects are distributive, each and everyone of the objects must relate to education in order that the institution may be held entitled for the benefits under Section 10(23-C)(vi) of the Act. If the primary or dominant purpose of an institution is educational , another object which is merely ancillary or incidental to the primary or dominant purpose would not disentitle the institution from the benefit. The test which has, therefore, to be applied is whether the object, which is said to be non-educational, is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and to co-operate and associate with organizations having similar objectives ; to work for eradication of illiteracy among other economically weaker communities of India ; to maintain unity among the members, to conduct games and sports, to maintain all members meetings and to develop in the locality ; and to organize study circles, discussion groups, library, branches of society anywhere in the state of Andhra Pradesh . These objects do not relate to education. The sense in which the word education has been used, in Section 2(15) of the Income Tax Act, is the systematic instruction, schooling or training given to the young in preparation for the work of life. It also connotes the whole course of scholastic instruction which a person h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 10(23-C) (vi) of the Act. If the assessee's case does not fall within Section 2(15), it is difficult to put it in Section 10(23-C) (vi) of the Act. (Maharaja Sawai Mansinghji Museum Trust[1988) 169 ITR 379 (RAJ)). The submission that the entire surplus income of the educational institution has been spent only for educational activities and nothing else, is of no consequence in as much as the petitionerssocieties non-educational objects would enable them, at their discretion, to apply the funds of the society for such non-educational objects also. Since the basic requirement of Section 10(23-C)(vi) of the Act is that the educational institution must exist solely for the purpose of education, and not for the purpose of profit, incl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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