December 2009
Educational institution : Exemption u/s. 10(23C)(vi) of Income-tax Act, 1961 : Society running various educational institutions : Object of society also to serve church and nation : Not a ground for rejection of approval for exemption.
By K. B. Bhujle, Advocate
New Page 1
Reported :
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Educational institution : Exemption u/s. 10(23C)(vi) of
Income-tax Act, 1961 : Society running various educational institutions :
Object of society also to serve church and nation : Not a ground for rejection
of approval for exemption.
[Ewing Christian College Society v. CCIT, 318 ITR
160 (All.)]
The petitioner-society ran various educational institutions
in the State of UP and it was not for the purpose of making profit. Its
application for approval for exemption was rejected by the Chief Commissioner
on the ground that the purposes for which the society has been established
were religious in nature and consequently the society could not be said to
exist solely for the purpose of education.
On a writ petition filed by the petitioner, the Allahabad
High Court held as under :
“(i) Merely because the object of the petitioner-society
was also to serve the church and the nation, that would not mean that the
educational institution was not existing solely for educational purposes.
(ii) Thus the order passed by the Chief Commissioner
could not be sustained and was set aside. The Chief Commissioner was
directed to pass a fresh order.”
