3 SCC 346) and American Hotel & Lodging Association, Educational Institute v. CBDT

10 SCC 509Reported decision2008#5170 most cited

What is 3 SCC 346) and American Hotel & Lodging Association, Educational Institute v. CBDT authority for?

Educational institutions exist solely for educational purposes, not for profit, when any surplus generated is ploughed back for educational purposes. The predominant object test cannot be applied to educational institutions if they are permitted to record profits and gains of business.

22

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2013 to 2025.

Also referred to as

American Hotel and Lodging Association v. CBDT · 2008 · 10 SCC 509 · educational institution · not for profit · surplus for education · predominant object test · Section 10(23C)(vi)

Judgments citing 3 SCC 346) and American Hotel & Lodging Association, Educational Institute v. CBDT

DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2, EXEMPTION, AHMEDABAD, AHMEDABAD vs. SHREE VALLABH SEVA KENDRA, VALSAD

In the result, the appeal of the Revenue is allowed

ITA 201/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad11 Feb 2025AY 2018-19
For Appellant: \nShri Aarsi Prasad, CIT-DRFor Respondent: \nShri M.K. Patel, Advocate
Section 10Section 143Section 143(3)Section 250

…\nbusiness". The facts in this case clearly proves that the fees charged are\nnot nominally but significantly higher. The Hon'ble Apex Court has duly\ndealt with the arguments and judgments in the case of American Hotel and\nLodging Association v. CBDT (2008) 10 SCC 509, Queens Education\nSociety vs. CIT 2015 (8) SCC 47, Surat Art Silk Cloth Mfg. Association\n(supra), which was decided in the context of charities engaged in\nadvancing objects of GPU and not in a case dealing with educational\ninstitutions. Hence, the reasoning of the two cases relied upon is incorrect\nand accordingly, the application of the pred…

COMMISSIONER OF INCOME TAX, vs. SIKHYA\"O\"ANUSANDHAN

ITA/17/2015HC Orissa03 Jan 2023

Bench: The Itat Against The Respondent-Assessee For The Assessment Years (Ays) 2007-08 Till 2012-13.

Section 11Section 11(1)(a)Section 12

…Judges of the Supreme Court has taken a different view from the one expressed in Aditanar Educational Institution (supra), Pinegrove International Charitable Trust (supra) and American Hotel and Lodging Association v. Central Board of Direct Taxes, (2008) 10 SCC 509 and Queen’s Education Society v. Commissioner of Income Tax, (2015) 8 SCC 47, all of which have been relied upon by the ITAT in the instant case. 7. However, this Court notes that in New Noble Educational Society (supra), the Supreme Court in para 88 of the said judgment clarified that “since the present judgment has departed from the previo…

COMNR.OF INCOME TAX vs. SIKHYA O ANUSANDHAN

ITA/34/2013HC Orissa03 Jan 2023

Bench: The Itat Against The Respondent-Assessee For The Assessment Years (Ays) 2007-08 Till 2012-13.

Section 11Section 11(1)(a)Section 12

…Judges of the Supreme Court has taken a different view from the one expressed in Aditanar Educational Institution (supra), Pinegrove International Charitable Trust (supra) and American Hotel and Lodging Association v. Central Board of Direct Taxes, (2008) 10 SCC 509 and Queen’s Education Society v. Commissioner of Income Tax, (2015) 8 SCC 47, all of which have been relied upon by the ITAT in the instant case. 7. However, this Court notes that in New Noble Educational Society (supra), the Supreme Court in para 88 of the said judgment clarified that “since the present judgment has departed from the previo…

ASSISTANT COMMISSIONER OF INCOME TAX (EXEMPTIONS) vs. AHMEDABAD URBAN DEVELOPMENT AUTHORITY

C.A. No.-021762-021762 - 2017Supreme Court19 Oct 2022

Bench: HON'BLE THE CHIEF JUSTICE

…ensure the functioning of the Institute in accordance with the provisions of this Act and in performance of other statutory duties as may be entrusted to the Institute from time to time. 88 (2005) 273 ITR 139 (Guj.) 89 (1992) 195 ITR 279 (Guj.) 90 (2008) 10 SCC 509 50 argue that ICAI is entitled to be notified under Section 10(23C)(iv) r/w Section 2(15) of the Act, 1961. 81. Counsel submitted that profit motive is an essential element, or the driving force, for any business or commercial activity. The activities of ICAI are not of such nature. Counsel relied upon the judgment in NDMC (supra) which…

M/S NEW NOBLE EDUCATIONAL SOCIETY vs. THE CHIEF COMMISSIONER OF INCOME TAX 1

The appeals are hereby dismissed, without order on costs

C.A. No.-003795-003795 - 2014Supreme Court19 Oct 2022

Bench: HON'BLE THE CHIEF JUSTICE

Section 10

…ational Institution v. CIT [(1997) 3 SCC 346 : (1997) 224 ITR 310] ). The test is—the nature of activity. If the activity like running a printing press takes place it is not 5 American Hotel and Lodging Association v Central Board of Direct Taxes, (2008) 10 SCC 509. 6Queen’s Education Society v Commissioner of Income Tax, (2015) 8 SCC 47. 7 educational. But whether the income/profit has been applied for non-educational purpose has to be decided only at the end of the financial year.” 8. It was further held that the third proviso was in effect operative after the registration or approval of t…

INCOME TAX OFFICER (EXEMPTIONS), WARD, JAIPUR, JAIPUR vs. RAJASTHAN CRICKET ASSOCIATION, JAIPUR

In the result, appeal of the Department is dismissed

ITA 68/JPR/2022[2013-14]Status: DisposedITAT Jaipur21 Jun 2022AY 2013-14

Bench: The Hon’Ble Tribunal In The Interest Of Justice.

For Appellant: Shri Shyam Lal Agarwal, CAFor Respondent: Ms Manisha Chandra, CIT fu/kZkfjrh dh vksj ls@
Section 11Section 12ASection 143(3)Section 147Section 148Section 2(15)

…down in Surat Art Silk Cloth case (CIT v. Surat Art Silk Cloth Manufacturer's Association [1980] 2 SCC 31) Aditanar case (Aditanar Educational Institution v. CIT [1997] 3 SCC 346) and American Hotel & Lodging Association, Educational Institute v. CBDT [2008] 10 SCC 509). It is clear that when a surplus is ploughed back for educational purposes, the educational institution exists solely for educational purposes and not for purposes of profit." In that case, the facts of the case before the Hon'ble Supreme Court were that the University had generated huge surplus of about Rs. 500 crores from the year 1999 to 2010…

INCOME TAX OFFICER (EXEMPTION),WARD, JAIPUR, JAIPUR vs. RAJASTHAN CRICKET ASSOCIATION, JAIPUR

In the result, appeal of the Department is dismissed

ITA 67/JPR/2022[2012-13]Status: DisposedITAT Jaipur21 Jun 2022AY 2012-13

Bench: The Hon’Ble Tribunal In The Interest Of Justice.

For Appellant: Shri Shyam Lal Agarwal, CAFor Respondent: Ms Manisha Chandra, CIT fu/kZkfjrh dh vksj ls@
Section 11Section 12ASection 143(3)Section 147Section 148Section 2(15)

…down in Surat Art Silk Cloth case (CIT v. Surat Art Silk Cloth Manufacturer's Association [1980] 2 SCC 31) Aditanar case (Aditanar Educational Institution v. CIT [1997] 3 SCC 346) and American Hotel & Lodging Association, Educational Institute v. CBDT [2008] 10 SCC 509). It is clear that when a surplus is ploughed back for educational purposes, the educational institution exists solely for educational purposes and not for purposes of profit." In that case, the facts of the case before the Hon'ble Supreme Court were that the University had generated huge surplus of about Rs. 500 crores from the year 1999 to 2010…

INCOME TAX OFFICER, JAIPUR vs. RAJASTHAN CRICKET ASSOCIATION, JAIPUR

In the result, appeal of the Department is dismissed

ITA 66/JPR/2022[2005]Status: DisposedITAT Jaipur21 Jun 2022

Bench: The Hon’Ble Tribunal In The Interest Of Justice.

For Appellant: Shri Shyam Lal Agarwal, CAFor Respondent: Ms Manisha Chandra, CIT fu/kZkfjrh dh vksj ls@
Section 11Section 12ASection 143(3)Section 147Section 148Section 2(15)

…down in Surat Art Silk Cloth case (CIT v. Surat Art Silk Cloth Manufacturer's Association [1980] 2 SCC 31) Aditanar case (Aditanar Educational Institution v. CIT [1997] 3 SCC 346) and American Hotel & Lodging Association, Educational Institute v. CBDT [2008] 10 SCC 509). It is clear that when a surplus is ploughed back for educational purposes, the educational institution exists solely for educational purposes and not for purposes of profit." In that case, the facts of the case before the Hon'ble Supreme Court were that the University had generated huge surplus of about Rs. 500 crores from the year 1999 to 2010…

M/S. RAJASTHAN CRICKET ASSOCIATION,JAIPUR vs. ADD.CIT. RANGE-2, JAIPUR

In the result, the matter is decided in favour of the assessee and against the Revenue and the ground of appeal so taken by the assessee society is thus allowed

ITA 284/JPR/2020[2011-12]Status: DisposedITAT Jaipur25 Nov 2020AY 2011-12
For Appellant: Shri Shyam Lal Agarwal (CA) &For Respondent: Smt. Rooni Paul (Addl.CIT) &

…down in Surat Art Silk Cloth case (CIT v. Surat Art Silk Cloth Manufacturer's Association [1980] 2 SCC 31) Aditanar case (Aditanar Educational Institution v. CIT [1997] 3 SCC 346) and American Hotel & Lodging Association, Educational Institute v. CBDT [2008] 10 SCC 509). It is clear that when a surplus is ploughed back for educational purposes, the educational institution exists solely for educational purposes and not for purposes of profit." In that case, the facts of the case before the Hon'ble Supreme Court were that the University had generated huge surplus of about Rs. 500 crores from the year 1999 to 2010…

INCOME TAX OFFICER (EXEMPTION), WARD-1, JAIPUR vs. M/S RAJASTHAN CRICEKT ASSOCIATION, JAIPUR

In the result, the matter is decided in favour of the assessee and against the Revenue and the ground of appeal so taken by the assessee society is thus allowed

ITA 1356/JPR/2018[2011-12]Status: DisposedITAT Jaipur09 Dec 2019AY 2011-12
For Appellant: Shri Shyam Lal Agarwal (CA) &For Respondent: Smt. Rooni Paul (Addl.CIT) &

…down in Surat Art Silk Cloth case (CIT v. Surat Art Silk Cloth Manufacturer's Association [1980] 2 SCC 31) Aditanar case (Aditanar Educational Institution v. CIT [1997] 3 SCC 346) and American Hotel & Lodging Association, Educational Institute v. CBDT [2008] 10 SCC 509). It is clear that when a surplus is ploughed back for educational purposes, the educational institution exists solely for educational purposes and not for purposes of profit." In that case, the facts of the case before the Hon'ble Supreme Court were that the University had generated huge surplus of about Rs. 500 crores from the year 1999 to 2010…

INCOME TAX OFFICER (EXEMPTION), WARD-1, JAIPUR vs. RAJASTHAN CRICKET ASSOCIATION, JAIPUR

In the result, the matter is decided in favour of the assessee and against the Revenue and the ground of appeal so taken by the assessee society is thus allowed

ITA 1355/JPR/2018[2010-11]Status: DisposedITAT Jaipur09 Dec 2019AY 2010-11
For Appellant: Shri Shyam Lal Agarwal (CA) &For Respondent: Smt. Rooni Paul (Addl.CIT) &

…down in Surat Art Silk Cloth case (CIT v. Surat Art Silk Cloth Manufacturer's Association [1980] 2 SCC 31) Aditanar case (Aditanar Educational Institution v. CIT [1997] 3 SCC 346) and American Hotel & Lodging Association, Educational Institute v. CBDT [2008] 10 SCC 509). It is clear that when a surplus is ploughed back for educational purposes, the educational institution exists solely for educational purposes and not for purposes of profit." In that case, the facts of the case before the Hon'ble Supreme Court were that the University had generated huge surplus of about Rs. 500 crores from the year 1999 to 2010…

DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTION), CIRCLE-1, BENGALURU vs. M/S. MAHATMA GANDHI VIDYAPEETHA TRUST, BENGALURU

In the result, appeal of the Revenue is dismissed while cross objection by the Assessee is allowed

ITA 2707/BANG/2017[2012-13]Status: DisposedITAT Bangalore15 Feb 2019AY 2012-13

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

For Appellant: Shri S Sukumar, AdvocateFor Respondent: Shri Pradeep Kumar, CIT
Section 11Section 12ASection 143(3)

…CC 47. To the above principles, one further test as laid down in CIT vs. Surat Art Silk Cloth Manufacturers’ Assn (1980) 2 SCC 31 and culled out in American Hotel and Lodging Association Educational Institute vs. Central Board of Direct Taxes and Others (2008)10 SCC 509 may be added which is as follows: “In order to ascertain whether the institute is carried on with the object of making profit or not it is the duty of the prescribed authority to ascertain whether the balance of income is applied wholly and exclusively to the objects for which the applicant is established.” The above principle has been specificall…

M/S RAJIV GANDHI PROUDYOGIK VISHWAVIDHALYA,HOSANGABAD vs. DCIT CPC, BENGALURU

In the result, the appeal of the assessee in I

ITA 325/IND/2018[15-16]Status: DisposedITAT Indore29 May 2018

Bench: Shri Kul Bharat & Shri Manish Boradआ.अ.सं /.I.T.A. No. 324 & 325/Ind/2018 "नधा"रणवष" / Assessment Years: 2014-15 & 2015-16 M/S. Rajiv Gandhi Proudyogiki Vs. Dcit, Vishwavidyalaya, Cpc, Bhopal Bangaluru

Section 10Section 139Section 143(1)Section 35

…Silk Cloth case [CIT v. Surat Art Silk Cloth Manufactures' Assn.(1980) 2 SCC 31], Aditanar case [Aditanar Educational Institution v. CIT [(1997) 3SCC 346 ] and American Hotel & Lodging case [American Hotel & Lodging Assn. Educational Institute v. CBDT (2008) 10 SCC 509]. It is clear that when a surplus is ploughed back for educational purposes, 15 M/s.Rajiv Gandhi Proudyogiki Vishwavidyalaya,Bhopal. the educational institution exists solely for educational purposes and for purposes of profit." 3. In brief, on the issue of allowability of exemption u/s 10(23c), we have 6 principles or tests laid down on the bas…

M/S RAJIV GANDHI PROUDYOGIK VISHWAVIDHALYA,HOSANGABAD vs. DCIT CPC, BENGALURU

In the result, the appeal of the assessee in I

ITA 324/IND/2018[14-15]Status: DisposedITAT Indore29 May 2018

Bench: Shri Kul Bharat & Shri Manish Boradआ.अ.सं /.I.T.A. No. 324 & 325/Ind/2018 "नधा"रणवष" / Assessment Years: 2014-15 & 2015-16 M/S. Rajiv Gandhi Proudyogiki Vs. Dcit, Vishwavidyalaya, Cpc, Bhopal Bangaluru

Section 10Section 139Section 143(1)Section 35

…Silk Cloth case [CIT v. Surat Art Silk Cloth Manufactures' Assn.(1980) 2 SCC 31], Aditanar case [Aditanar Educational Institution v. CIT [(1997) 3SCC 346 ] and American Hotel & Lodging case [American Hotel & Lodging Assn. Educational Institute v. CBDT (2008) 10 SCC 509]. It is clear that when a surplus is ploughed back for educational purposes, 15 M/s.Rajiv Gandhi Proudyogiki Vishwavidyalaya,Bhopal. the educational institution exists solely for educational purposes and for purposes of profit." 3. In brief, on the issue of allowability of exemption u/s 10(23c), we have 6 principles or tests laid down on the bas…

ITI EDUCATION COMMITTEE,BANGALORE vs. INCOME-TAX OFFICER(EXEMPTION), BANGALORE

In the result, the appeal filed by the assessee is allowed

ITA 425/BANG/2017[2012-13]Status: DisposedITAT Bangalore31 Jan 2018AY 2012-13

Bench: Shri Sunil Kumar Yadav & Shri Inturi Rama Raom/S.Iti Education Committee, Vidyamandir, Dooravaninagar, Bengaluru. Pan : Aaaai0748L … Appellant Vs. The Income-Tax Officer (Exemptions), Ward - 1, Bengaluru … Respondent Appellant By : Shri H Sambhu Sharma, C.A Respondent By : Shri Pradeep Kumar, Acit(Dr)

For Appellant: Shri H Sambhu Sharma, C.AFor Respondent: Shri Pradeep Kumar, ACIT(DR)
Section 10Section 11Section 11(1)(a)Section 143(3)

…[CIT v. Surat Art Silk Cloth Manufacturers' Assn.[1980] 2 SCC 31], Aditanar case [Aditanar Educational Institution v. CIT [(1997) 3 SCC 346] and American Hotel & Lodging case [American Hotel & Lodging Assn. Educational Institute Page 12 of 16 v. CBDT [(2008) 10 SCC 509]. It is clear that when a surplus is ploughed back for educational purposes, the educational institution exists solely for educational purposes and not for purposes of profit." 8. In the present case, we find that during a short period of a decade i.e. from the year 1999 to 2010 the appellant University had generated a surplus of about Rs.500 cror…

The Commissioner of Income Tax (Central) vs. K. V. Srinivasa Rao

ITTA/480/2017HC Telangana01 Aug 2017
For Respondent: Mr. J.S. Guleria, Deputy
Section 120BSection 25Section 27Section 302

…the provocative speeches by A-1. No definite cross-examination on the provocative nature of speech regarding the Khalistan movement was made, so far as this witness is concerned.” 56. This position was reiterated in Shamim v. State (NCT of Delhi), (2018) 10 SCC 509: (2019) 1 SCC (Cri) 319: 2018 SCC OnLine SC 1559 where it was held at page 513: “12. While appreciating the evidence of a witness, the approach must be whether the evidence of the witness read as a whole inspires confidence. Once that impression is formed, it is undoubtedly necessary for the court to scrutinise the evid…

ACIT(EXEMPTION), JAIPUR vs. MAHIMA SHIKSHA SAMITI, JAIPUR

In the result, all the grounds taken by the Revenue are dismissed and ground taken by the assessee society is allowed

ITA 105/JPR/2016[2010-11]Status: DisposedITAT Jaipur03 Mar 2017AY 2010-11
For Appellant: Shri Vinod Kumar Gupta (CA)For Respondent: Shri Anil Kumar (CIT)
Section 11Section 11(1)Section 11(1)(a)Section 12ASection 13Section 13(1)(c)Section 13(3)Section 143(3)Section 32

…own in Surat Art Silk Cloth case (CIT vs. Surat Art Silk Cloth Manufacturer’s Association (1980) 2 SCC 31) Aditanar case (Aditanar Educational Institution vs. CIT (1997) 3 SCC 346) and American Hotel & Lodging Association, Educational Institute vs. CBDT(2008) 10 SCC 509). It is clear that when a surplus is ploughed back for educational purposes, the educational institution exists solely for educational purposes and not for purposes of profit.” In that case, the facts of the case before the Hon’ble Supreme Court were that the University had generated huge surplus of about Rs 500 crores from the year 1999 to 2010…

VISVESVARAYA TECH.UNIVERSITY vs. ASSISTANT COMMISSIONER OF INCOME TAX

C.A. No.-004361-004366 - 2016Supreme Court22 Apr 2016
Section 10Section 148

…ucational Institute v. CBDT [(2008) 10 SCC 509]. It is clear that when a surplus is ploughed back for educational purposes, the educational institution exists solely for educational purposes and not for purposes of profit.” 2 (1980) 2 SCC 31 3 (2008)10 SCC 509 Page 6 JUDGMENT 6 8. In the present case, we find that during a short period of a decade i.e. from the year 1999 to 2010 the appellant University had generated a surplus of about Rs.500 crores. There is no doubt that the huge surplus has been collected/accumulated by realizing fees under different heads in consonance with the powers vested…

VISVESVARAYA TECH.UNIVERSITY vs. ASSISTANT COMMISSIONER OF INCOME TAX

C.A. No.-004361-004366 - 2016Supreme Court22 Apr 2016
Section 10Section 148

…ucational Institute v. CBDT [(2008) 10 SCC 509]. It is clear that when a surplus is ploughed back for educational purposes, the educational institution exists solely for educational purposes and not for purposes of profit.” 2 (1980) 2 SCC 31 3 (2008)10 SCC 509 Page 6 JUDGMENT 6 8. In the present case, we find that during a short period of a decade i.e. from the year 1999 to 2010 the appellant University had generated a surplus of about Rs.500 crores. There is no doubt that the huge surplus has been collected/accumulated by realizing fees under different heads in consonance with the powers vested…

M/S UNITED EDUCATION SOCIETY vs. THE CHIEF COMMISSIONER OF INCOME TAX

WA/3012/2013HC Karnataka12 Feb 2016

Bench: S.SUJATHA,N.K.PATIL

Section 10Section 12ASection 13(1)(d)Section 4Section 80G

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF FEBRUARY, 2016 PRESENT THE HON’BLE MR. JUSTICE N.K. PATIL AND THE HON’BLE MRS.JUSTICE S. SUJATHA WRIT APPEAL No.3012/2013 (T-IT) BETWEEN M/s. United Education Society B M Road Hassan-573 201 (Represented by its Secretary Smt. K R Anusuya Aged about 55 years D/o Rudrappa) ….Appellant (By Sri.K.K.Chythanya, Advocate ) AND The Chief Commissioner of Income tax Central Revenue Building Queen’s Road Bangalore-560 001. ..Respondent (By Sri.K.V.Aravind, Advocate) T…

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3 SCC 346) and American Hotel & Lodging Association, Educational Institute v. CBDT (10 SCC 509) — Cited in 22 Judgments | BharatTax