9911796707
TMI Blog2024 (5) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... 23C)(iiiab) of the Income Tax Act, 1961 as it is substantially financed by the Government receiving grant of Rs. 89,19,294/- against gross receipts of Rs.2,66,32,390/- which is more that 20%, and the expenditure of Rs.2,56,60,780/- had been incurred by the Trust towards its aims and objects in carrying out activities in the field of education, and the expenditures having been incurred with respect to that alone, the exemptions were rightly granted. Thus, we find that the order passed by the ITAT as well as the assessing officer do not require to be interfered with keeping in view the observations and directions passed by Hon ble the Supreme Court in New Noble Educational Society s case [ 2022 (10) TMI 855 - SUPREME COURT ] - Thus no substan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onclusions pertain to the interpretation of expression 'solely' is mentioned in American Hotel and Lodging Association vs. CBDT and others, [2008] 301 ITR 86 (SC) and Queen's Educational Society (supra), has been overruled and the larger Bench in New Noble Educational Society (supra) has held as under: "76. The conclusions of this court are summarized as follows : a. It is held that the requirement of the charitable institution, society or trust etc., to 'solely' engage itself in education or educational activities, and not engage in any activity of profit, means that such institutions cannot have objects which are unrelated to education. In other words, all objects of the society, trust etc., must relate to imparting education or be i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... examine only the objects of the institution. To ascertain the genuineness of the institution and the manner of its functioning, the Commissioner or other authority is free to call for the audited accounts or other such documents for recording satisfaction where the society, trust or institution genuinely seeks to achieve the objects which it professes. The observations made in American Hotel (supra) suggest that the Commissioner could not call for the records and that the examination of such accounts would be at the stage of assessment. Whilst that reasoning undoubtedly applies to newly set up charities, trusts etc. the proviso under Section 10(23C) is not confined to newly set up trusts - it also applies to existing ones. The Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X
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