ALLAHABAD HIGH COURT - Income Tax
Exemption u/s 10(23C)(vi) – Requirement of approval under Rule 2BC – Gross receipts to be lower than Rupees one crore – Held that:- In American Hotel & Lodging Association, Educational Institute Vs. Central Board of Direct TaxesSUPREME COURT OF INDIA] it has been held that the petitioner society is running an educational institution - Merely because there are other objects of the society does not mean that the educational institution is not existing solely for educational purpose - The emphasis of the word "solely" is in relation to the educational institution, which is running not for the purpose of making profit and is not in relation to the objects of the society - the authority is required to consider the nature and genuineness of the activities - mere existence that there is some profit does not disqualify the petitioner if the sole purpose of existence was not profit making but educational activities - the threshold conditions are actual existence of an educational institution and approval of the prescribed authority for which every applicant has to move an application in the standardized form in terms of the first proviso - Director General of Income Tax (Investigation) had misdirected itself in not considering the conditions mentioned u/s 10(23C)(vi) of the Act – the order of the DGIT(Investigation) is set aside – Decided in favour of assessee.
Regards
Prarthana Jalan
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