Birla Vidhya Vihar Trust vs Commissioner Of Income-Tax, Central I on 4 May, 1981
44. The question arises whether exemption under s. 10(22) of the Act can be denied to the income from school, which was solely for educational purposes, because the assessee-society had some non-educational purposes also. The only direct decision on this aspect placed before us is the decision of the Calcutta High Court in Birla Vidhya Vihar Trust vs. CIT (supra). It was held therein that the trust which owned the educational institution may have other charitable though not educational purposes but if taking all the relevant factors the educational institution generating the income was existing for only educational purposes, then the assessee was entitled to exemption under s. 10(22) of the Act. The material facts are similar in this case. We also note that the assessee-society had no other activity apart from running the school. We would respectfully follow the above decision.