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Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
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5 Educational Institution : Exemption u/s.
10(22) of Income-tax Act, 1961 : A.Y. 1997-98 : Institution run for educational
purposes : No evidence that capitation fees had been charged : Institution
entitled to exemption u/s. 10(22).
[CIT v. Khalsa Rural Hospital and Nursing Training
Institute, 304 ITR 20 (P&H)]
The assessee-trust was running a rural hospital and training
institute for nurses. During the course of assessment proceedings for the A.Y.
1997-98, the Assessing Officer noticed that the assessee had claimed exemption
u/s.11 of the Income-tax Act, 1961. The Assessing Officer disallowed the
exemption u/s.11 and made an addition of Rs.40 lakhs on account of capitation
fee. The Tribunal allowed exemption u/s.10(22) of the Act.
The Punjab & Haryana High Court dismissed the appeal filed by
the Revenue and held as under :
“There was nothing on record to show that the assessee-trust
was charging any capitation fee. The Assessing Officer had not found any
irregularity in the accounts of the trust. There was no document to show that
the trust was being run for any purpose of profit except that for any
educational purposes. The assesse was entitled to exemption u/s.10(22).”