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1 - 7 of 7 (0.72 seconds)Section 147 in The Income Tax Act, 1961 [Entire Act]
Section 148 in The Income Tax Act, 1961 [Entire Act]
Section 12A in The Income Tax Act, 1961 [Entire Act]
Section 12 in The Income Tax Act, 1961 [Entire Act]
Trustees Of Vanita Vishram vs Commissioner Of Income-Tax on 29 June, 2005
In the case of Trustees of Vanita Vishram (supra), the assessee-trust claimed exemption under Section 10(22) in respect of interest income earned by it. The exemption was denied on the ground that the source from which the income was generated was interest earned from investment of surplus and it was not an income directly earned from the educational activities qualifying exemption. The High Court held that granting exemption to the income of the educational institutions is to enable such institutions to utilize the monies available with them for the purposes of running the educational institutions. The source from which the monies are received is of no consequence, what is relevant is the application of income. In the present case, it is not disputed that the assessee was engaged in creating the infrastructure for the purpose of setting up of Medical College. It is common knowledge that it takes considerable time to set up such an infrastructure. Since the activity of setting up the infrastructure was towards the fulfilment of the main object for which the Society was established, the assessee should not be denied the benefit of Section 11. In fact, the Teaching Hospital of the Society had come into existence during the previous year 1996-97 itself. It is also not the allegation of the department that the monies were utilised for purposes other than the object of the Society. Therefore, viewing the facts of the case in the light of the judgments referred to above, we are of the opinion that the Commissioner (Appeals) was justified in granting exemption to the assessee under Section 11 of the Act.
Commissioner Of Income-Tax vs Devi Educational Institution And Ors. on 3 October, 1983
Thus, the reliance of the learned departmental Representative on the judgment in the case of Devi Educational Institution (supra) cannot come to its rescue.
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