Quick Summary
The Supreme Court held that educational trust or societies, which seek exemption under Section 10 (23C) of Income Tax Act, should solely be concerned with education, or education related activities. Where the objective of the institution appears to be profit-oriented, such institutions would not be entitled to approval , the bench of CJI Uday Umesh Lalit, Justices S. Ravindra Bhat and P S Narasimha observed. The court overruled its earlier judgments which interpreted the expression solely
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
FAQ :
Educational trusts must have education as their sole objective to claim exemption under Section 10(23C) of the Income Tax Act.
No, if the objective of an educational institution appears to be profit-oriented, it will not be entitled to approval or tax exemption.
Not necessarily. A surplus generated in the course of providing education or educational activities is permissible, provided it's not the primary objective and is incidental to educational pursuits.
The Supreme Court clarified that 'solely' means that all objects of the trust or society must relate to imparting education or be in relation to educational activities, with no unrelated profit-making objectives.
No, the law declared in this judgment will operate only prospectively, meaning it applies to future applications and not to past claims.
Yes, tax authorities can call for audited accounts and other documents to ascertain the genuineness of an institution and its functioning.
CAclubindia
