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TAX ON EDUCATIONAL INSTITUTIONS: RELAXATION UNDER INCOME TAX ACT, 1961 AND IMPACT OF NEW NOBLE EDUCATIONAL SOCIETY’S JUDGEMENT BY - DR. SYED MOHAMMAD YAWAR
[1] Assistant Professor, Department of Law, Aligarh Muslim University, Aligarh.
[2] 2023 6SCC 649
[3] (iiiab) any university or other educational institution existing solely for educational purposes and not for purposes of profit, and which is wholly or substantially financed by the Government
[4] (iiiad) any university or other educational institution existing solely for educational purposes and not for purposes of profit if the aggregate annual receipts of the person from such university or universities or educational institution or educational institutions do not exceed five crore rupees; or
[5] M/s New Noble Educational Society v The Chief Commissioner of Income Tax, (2011) 334 ITR 303
[6] (2011) 334 ITR 303
[7] [1993] 201 ITR 939 (Guj)
[8] Supra Note 5 Para 8.
[9] CIT v. Gurukul Ghatkeswar Trust, (2011) 332 ITR 611 (AP); CIT v. Maharaja Sawai Mansinghji Museum Trust, [1988] 169 ITR 379 (Raj)
[10] Supra Note 5 Para 23 Quoting Para 23.
[11] New Noble Educational Society v. The Chief Commissioner of Income Tax 2023 6SCC 649 Para 32.
[12] Ibid Para 34.
[13] Supra Note 11 para 34
[14] Ibid Para 35.
[15] Supra Note 11 Para 37.
[16] (1976) 1 SCC 324.
[17] Supra Note 11 Para 38.
[18] Additional Commissioner of Income Tax v. Surat Art Silk Cloth Manufacturers’ Association, (1980)2 SCC 31.
[19] Ibid.
[20] Supra Note 11 Para 39.
[21] (1997) 3 SCC 346
[22] Supra Note 11 Para 40.
[23] [2001] 247 ITR 658 (SC)
[24] Ibid Para 42
[25] (2008) 10 SCC 509
[26] Oxford University Press, Supra Note 23
[27] Aditanar, Supra Note 21
[28] (2015) 8 SCC 47.
[29] Supra Note 28 Para 11
[30] Aditanar Educational Institution v. Additional Commissioner of Income Tax (1997) 3 SCC 346.
[31] Ibid.
[32] This condition was propounded in Oxford University Press v. CIT [2001] 247 ITR 658 (SC) where the applicant was a publisher, part of the Oxford University established in the U.K. The assessee did not engage in imparting education, but only in publishing books, periodicals, etc. for profit. Therefore, the court by its majority opinion held that the mere fact that it was part of a university (incorporated or set up abroad) did not entitle it to claim exemption on the ground that it was imparting education in India.
[33]American Hotel and Lodging Association v Central Board of Direct Taxes (2008) 10 SCC 509. It was also held that the stage of examining whether and to what extent profits were generated and how they were utilised was not essential at the time of grant of approval, but rather formed part of the monitoring mechanism.
[34] Queen’s Education Society v. Commissioner of Income Tax (2015) 8 SCC 47.
[35] Supra Note 11 Para 48.
[36] Supra Note 33
[37] Supra Note 34
[38] Supra Note 11 Para 60.
[39] Supra Note 11 Para 63.
[40] Ibid Para 69.
[41] Ibid Para 70.
[42] New Noble Educational Society v. The Chief Commissioner of Income Tax 2023 6SCC 649 Para 76.
