Aditanar Educational Institution v. Addl. CIT

224 ITR 310Supreme Court of India1997#865 most cited

What is Aditanar Educational Institution v. Addl. CIT authority for?

A charitable educational institution or trust does not lose its charitable character merely because it generates a surplus, provided its primary object remains charitable and it does not operate for profit. The assessment of charitable nature should focus on the institution's objects rather than the quantum of surplus generated.

121

judgments rely on this decision, according to BharatTax’s citation analysis of 367,359 Indian tax judgments — from 2011 to 2025.

Also referred to as

Aditanar Educational Institution v Addl CIT · charitable trust · educational institution exemption · section 11 · section 10(23C) · surplus income · not for profit · objects of institution · Section 12AA · Section 12A · charitable purpose · ancillary activities

Also reported as

90 Taxmann 528

Sections most often in play

Section 11Section 143(3)Section 12AASection 12ASection 139(4A)Section 142(1)Section 10(23C)(v)Section 250

Issues it is cited on

section 10(22)section 11(4a)corpus fundsection 10(23c)(vi)proviso to section 2(15)section 10(23c)section 2(15)section 11(1)application of incomesection 12aaregistration under section 12asection 12a

Judgments citing Aditanar Educational Institution v. Addl. CIT

Roland Institute of Pharmaceutical Sciences, Ganjam vs. Cheif CIT, Bhubaneswar

Appeals are allowed in above terms

ITA 268/CTK/2019[2010-11]Status: DisposedITAT Cuttack15 Feb 2021AY 2010-11

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri S.K. TulsiyanFor Respondent: Shri M.K. Goutham, CIT-DR
Section 10

…al institution exists solely for educational purposes and not for purposes of profit, three Supreme Court judgments, namely, Addl.CIT vs. Surat Art Silk Cloth Manufactures Association – (1980) 121 ITR 1, Aditanar Educational Institution vs. Addl. CIT – (1997) 224 ITR 310 (SC) and American Hotel and Lodging Association Educational Institute vs. CBDT – (2008) 301 ITR 86 (SC) would apply. Hon‘ble Apex Court further held that 13th Proviso to section 10(23C) is of great importance in determining the issue that the AO must continuously monitor from assessment year to assessment year whether such institutions continue t…

Roland Institute of Pharmaceutical Sciences, Ganjam vs. Cheif CIT, Bhubaneswar

Appeals are allowed in above terms

ITA 267/CTK/2019[2009-10]Status: DisposedITAT Cuttack15 Feb 2021AY 2009-10

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri S.K. TulsiyanFor Respondent: Shri M.K. Goutham, CIT-DR
Section 10

…al institution exists solely for educational purposes and not for purposes of profit, three Supreme Court judgments, namely, Addl.CIT vs. Surat Art Silk Cloth Manufactures Association – (1980) 121 ITR 1, Aditanar Educational Institution vs. Addl. CIT – (1997) 224 ITR 310 (SC) and American Hotel and Lodging Association Educational Institute vs. CBDT – (2008) 301 ITR 86 (SC) would apply. Hon‘ble Apex Court further held that 13th Proviso to section 10(23C) is of great importance in determining the issue that the AO must continuously monitor from assessment year to assessment year whether such institutions continue t…

Roland Institute of Pharmaceutical Sciences, Ganjam vs. Cheif CIT, Bhubaneswar

Appeals are allowed in above terms

ITA 266/CTK/2019[2008--09]Status: DisposedITAT Cuttack15 Feb 2021

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri S.K. TulsiyanFor Respondent: Shri M.K. Goutham, CIT-DR
Section 10

…al institution exists solely for educational purposes and not for purposes of profit, three Supreme Court judgments, namely, Addl.CIT vs. Surat Art Silk Cloth Manufactures Association – (1980) 121 ITR 1, Aditanar Educational Institution vs. Addl. CIT – (1997) 224 ITR 310 (SC) and American Hotel and Lodging Association Educational Institute vs. CBDT – (2008) 301 ITR 86 (SC) would apply. Hon‘ble Apex Court further held that 13th Proviso to section 10(23C) is of great importance in determining the issue that the AO must continuously monitor from assessment year to assessment year whether such institutions continue t…

Roland Educational & Charitable Trust, Ganjam vs. Cheif CIT, Bhubaneswar

Appeals are allowed in above terms

ITA 265/CTK/2019[2007-08]Status: DisposedITAT Cuttack15 Feb 2021AY 2007-08

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri S.K. TulsiyanFor Respondent: Shri M.K. Goutham, CIT-DR
Section 10

…al institution exists solely for educational purposes and not for purposes of profit, three Supreme Court judgments, namely, Addl.CIT vs. Surat Art Silk Cloth Manufactures Association – (1980) 121 ITR 1, Aditanar Educational Institution vs. Addl. CIT – (1997) 224 ITR 310 (SC) and American Hotel and Lodging Association Educational Institute vs. CBDT – (2008) 301 ITR 86 (SC) would apply. Hon‘ble Apex Court further held that 13th Proviso to section 10(23C) is of great importance in determining the issue that the AO must continuously monitor from assessment year to assessment year whether such institutions continue t…

Roland Educational & Charitable Trust, Ganjam vs. Cheif CIT, Bhubaneswar

Appeals are allowed in above terms

ITA 264/CTK/2019[2005-06]Status: DisposedITAT Cuttack15 Feb 2021AY 2005-06

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri S.K. TulsiyanFor Respondent: Shri M.K. Goutham, CIT-DR
Section 10

…al institution exists solely for educational purposes and not for purposes of profit, three Supreme Court judgments, namely, Addl.CIT vs. Surat Art Silk Cloth Manufactures Association – (1980) 121 ITR 1, Aditanar Educational Institution vs. Addl. CIT – (1997) 224 ITR 310 (SC) and American Hotel and Lodging Association Educational Institute vs. CBDT – (2008) 301 ITR 86 (SC) would apply. Hon‘ble Apex Court further held that 13th Proviso to section 10(23C) is of great importance in determining the issue that the AO must continuously monitor from assessment year to assessment year whether such institutions continue t…

Roland Educational & Charitable Trust, Ganjam vs. Cheif CIT, Bhubaneswar

Appeals are allowed in above terms

ITA 263/CTK/2019[2012-13]Status: DisposedITAT Cuttack15 Feb 2021AY 2012-13

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri S.K. TulsiyanFor Respondent: Shri M.K. Goutham, CIT-DR
Section 10

…al institution exists solely for educational purposes and not for purposes of profit, three Supreme Court judgments, namely, Addl.CIT vs. Surat Art Silk Cloth Manufactures Association – (1980) 121 ITR 1, Aditanar Educational Institution vs. Addl. CIT – (1997) 224 ITR 310 (SC) and American Hotel and Lodging Association Educational Institute vs. CBDT – (2008) 301 ITR 86 (SC) would apply. Hon‘ble Apex Court further held that 13th Proviso to section 10(23C) is of great importance in determining the issue that the AO must continuously monitor from assessment year to assessment year whether such institutions continue t…

Roland Educational & Charitable Trust, Ganjam vs. Cheif CIT, Bhubaneswar

Appeals are allowed in above terms

ITA 262/CTK/2019[2011-12]Status: DisposedITAT Cuttack15 Feb 2021AY 2011-12

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri S.K. TulsiyanFor Respondent: Shri M.K. Goutham, CIT-DR
Section 10

…al institution exists solely for educational purposes and not for purposes of profit, three Supreme Court judgments, namely, Addl.CIT vs. Surat Art Silk Cloth Manufactures Association – (1980) 121 ITR 1, Aditanar Educational Institution vs. Addl. CIT – (1997) 224 ITR 310 (SC) and American Hotel and Lodging Association Educational Institute vs. CBDT – (2008) 301 ITR 86 (SC) would apply. Hon‘ble Apex Court further held that 13th Proviso to section 10(23C) is of great importance in determining the issue that the AO must continuously monitor from assessment year to assessment year whether such institutions continue t…

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) &

…me Court negated the said line of arguments put forward by Revenue and referred to its earlier decisions rendered in case of Addl. CIT v. Surat Art Silk Cloth Mfg. [1978] 121 ITR 1/[1979] 2 Taxman 501 (SC), Aditanar Educational Institution v. Addl. CIT [1997] 224 ITR 310/90 Taxman 528 (SC) and American Hotel & lodging Assn. Educational Institute v. CBDT [2008] 301 ITR 86/170 Taxman 306 (SC) and laid down the following principles in law as set out in paragraph 11 of its decision which reads as under: '11. the law common to section 10(23C)(iiiad) and (vi) may be summed up as follows: (1) Where an educational instit…

Director of Income Tax (Exemptions) vs. M/S. Karnataka Industrial

In the result, we do not find any merit in this

ITA/205/2016HC Karnataka30 Sept 2020

Bench: ALOK ARADHE,M.I.ARUN

Section 12ASection 2(15)Section 260Section 5

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30th DAY OF SEPTEMBER 2020 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE M.I. ARUN I.T.A. NO.205 OF 2016 BETWEEN: M/S. KARNATAKA INDUSTRIAL AREA DEVELOPMENT BOARD, NO.14/3, 2ND FLOOR, R.P. BUILDING, NRUPATHUNGA ROAD, BENGALURU-560 001. PAN: AAATK 1350J. ... APPELLANT (BY SRI. SANMATHI E.I., ADVOCATE – APPEARED THROUGH PHYSICAL HEARING) AND: THE ADDITIONAL DIRECTOR OF INCOME TAX (EXEMPTIONS), RANGE 17, BENGALURU. ... RESPONDENT (BY SRI. CHYTHANY…

Seth Ramjidas Modi Vidhya Niketan Society, Kota vs. CIT(Exemptio), Jaipur

ITA 197/JPR/2020[2019-20]Status: DisposedITAT Jaipur10 Sept 2020AY 2019-20
For Appellant: Shri Mahendra Gargieya (Adv) &For Respondent: Shri B.K. Gupta (CIT-DR)
Section 10Section 11(5)Section 12A

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES “B”, JAIPUR Jh jes'k lh 'kekZ] ys[kk lnL; ,oa Jh lanhi x®lkÃa] U;kf;d lnL; ds le{k BEFORE: SHRI RAMESH C SHARMA, AM & SHRI SANDEEP GOSAIN, JM vk;dj vihy la-@ITA No. 197/JP/2020 Seth Ramjidas Modi Vidhya cuke CIT(Exemptions), Vs. Niketan Society, Kailash Heights, Lal Kothi, 152, Modi House, Gumanpura, Tonk Road, Jaipur-302015. Kota (Rajasthan)-324007 LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAATN 1183 H vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by: Shri Mahendra Gargieya (Adv) & Ms. Mani…

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) &

…me Court negated the said line of arguments put forward by Revenue and referred to its earlier decisions rendered in case of Addl. CIT v. Surat Art Silk Cloth Mfg. [1978] 121 ITR 1/[1979] 2 Taxman 501 (SC), Aditanar Educational Institution v. Addl. CIT [1997] 224 ITR 310/90 Taxman 528 (SC) and American Hotel & lodging Assn. Educational Institute v. CBDT [2008] 301 ITR 86/170 Taxman 306 (SC) and laid down the following principles in law as set out in paragraph 11 of its decision which reads as under: '11. the law common to section 10(23C)(iiiad) and (vi) may be summed up as follows: (1) Where an educational instit…

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) &

…me Court negated the said line of arguments put forward by Revenue and referred to its earlier decisions rendered in case of Addl. CIT v. Surat Art Silk Cloth Mfg. [1978] 121 ITR 1/[1979] 2 Taxman 501 (SC), Aditanar Educational Institution v. Addl. CIT [1997] 224 ITR 310/90 Taxman 528 (SC) and American Hotel & lodging Assn. Educational Institute v. CBDT [2008] 301 ITR 86/170 Taxman 306 (SC) and laid down the following principles in law as set out in paragraph 11 of its decision which reads as under: '11. the law common to section 10(23C)(iiiad) and (vi) may be summed up as follows: (1) Where an educational instit…

Devki Devi Foundation, New Delhi vs. DIT (Exemptions), New Delhi

ITA 1027/DEL/2012[]Status: DisposedITAT Delhi22 Oct 2019

Bench: Shri R.K. Panda & Ms Suchitra Kambleassessment Year: -- Devki Devi Foundation, Vs Dit (Exemptions), Plot No.15, 3Rd Floor, 2, Press Enclave Road, Saket, Aayakar Bhawan, New Delhi. Laxmi Nagar District Centre, New Delhi. Pan: Aaatd5283G (Appellant) (Respondent) Assessee By : Shri Ajay Vohra, Sr. Advocate, Shri Gaurav Jain, Advocate & Shri Deepesh Jain, Ca Revenue By : Ms Nidhi Srivastava, Cit, Dr Date Of Hearing : 27.08.2019 Date Of Pronouncement : 22.10.2019 Order Per R.K. Panda, Am: The Appeal Filed By The Assessee Is Directed Against The Order Dated 28.12.2011 Of The Dit (Exemptions), Delhi Withdrawing Registration Granted Earlier U/S 12A Of The It Act Since Inception.

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Ms Nidhi Srivastava, CIT, DR
Section 12A

…2 ITR 246 (Bom); v) CIT vs. Bar Council of Maharashtra, 130 ITR 28 (SC); 28 vi) CIT vs. Andhra Pradesh State Road Transport Corporation: 159 ITR 1 (SC) vii) Victoria Technical Institute vs. CIT: 188 ITR 57 (SC) viii) Aditanar Educational Institution V. ACIT: 224 ITR 310 (SC) ix) Samaritan Society vs. CIT : 225 ITR 652 ( SC ) x) Thiagarajar Charities vs. Addl. CIT: 225 ITR 1010, 1026 (SC) xi) CIT v. St. Peter’s Educational Society: 385 ITR 66 (SC) xii) Tolani Education Society v. Dy. DIT(Exemptions)- 351 ITR 184 (Bom.)- (approved by SC Queen's Educational Society v CIT in 372 ITR 699) xiii) CIT v Delhi Kannada Ed…

ACIT(E), New Delhi vs. India International Centre, New Delhi

In the result, this appeal of Revenue is dismissed

ITA 5191/DEL/2016[2012-13]Status: DisposedITAT Delhi13 Sept 2019AY 2012-13

Bench: Shri Amit Shukla & Shri Anadee Nath Misshra

For Appellant: Shri Angad Gulati, AdvFor Respondent: Shri Janardan Das, Sr. DR
Section 10Section 12ASection 143(3)Section 2(15)

…erwise, the income is exempt u/s.l0(23C)(iv) of the I.T. Act.. 15) These observations, it is respectfully submitted, are not legally tenable in view of the judgments of the Supreme Court in the following cases: - “In Aditanars Educational Institution’s case, 224 ITR 310, the Apex Court while dealing with the factum of exemption has held thus: - “The language of section 10(22) of the Act is plain and clear and the availability of the exemption should be evaluated each year to find out whether the institution existed during the relevant year solely for educational purposes and not for purposes of profit. After mee…

The Indian Institute of Banking & Finance ( Formerly Known As the Indian Insitute of Bankers), Mumbai vs. Commissioner of Income Tax (Exemptions), Mumbai

In the result, assessee’s appeal is partly allowed for statistical purposes

ITA 6763/MUM/2017[2016-17]Status: DisposedITAT Mumbai02 Aug 2019AY 2016-17

Bench: Shri Saktijit Dey & Shri Manoj Kumar Aggarwal

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Awungshi Gimsan
Section 10Section 10(22)Section 26

…section 10(23C)(vi) of the Act should be allowed. In support of such contention, the learned Counsel relied upon the following decisions:– 1. Queens Educational Society v/s CIT, [2015] 55 taxmann.com 255; 2. Aditanar Educational Institution v/s ACIT, [1997] 224 ITR 310 (SC); 3. Council for the Indian School Certificate Examination v/s DGIT, [2014] 362 ITR 436 (Del.); and 4. DIT(E) v/s Sumudra Institution of Maritime Studies Trust, [2014] 369 ITR 645 (Bom.). 10. The learned Departmental Representative submitted, in course of proceedings before learned Commissioner (Exemp.), the assessee failed to furnish plausi…

Sharma Modern Public School Shiksha Samiti, Jaipur vs. ITO (Exemption), Alwar

In the result, appeal of the assessee is partly allowed for statistical purposes

ITA 462/JPR/2017[2014-15]Status: DisposedITAT Jaipur20 Jun 2019AY 2014-15

Bench: The Ld. Cit (A)

For Appellant: Shri Manish Agarwal &For Respondent: Shri Rajendra Jha (Addl. CIT)
Section 10

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH ’B’, JAIPUR Jh jes'k lh- 'kekZ] ys[kk lnL; ,oa h Jh fot; iky jkWo] U;kf;d lnL; ds le{k BEFORE: SHRI RAMESH C. SHARMA, AM & SHRI VIJAY PAL RAO, JM vk;dj vihy la-@ITA No. 462/JP/2017 fu/kZkj.k o"kZ@Assessment Year : 2014-15. cuke M/s. Sharma Modern Public School The Income Tax Officer Shiksha Samiti, (Exemption) Vs. Patan Ahir, Bibirani, Kotkasim, Alwar. Alwar. LFkk;h ys[kk la-@thvkbZvkj la-@PAN No. AADAS 1061 K vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri Manish Agarwal & Shri O.P. Aga…

M/S Guru Ram Dass Educational Society, Bathinda vs. The Commissioner of Income Tax (Exemption), Chandigarh

In the result, the assessee’s appeal is allowed

ITA 598/ASR/2016[]Status: DisposedITAT Amritsar03 Jun 2019

Bench: Sh. Sanjay Arora & Sh. N. K. Choudhryi. T. A. No. 598/Asr/2016 Assessment Year: N.A.

For Appellant: Sh. Vineet Krishan (Adv.)For Respondent: Sh. Alok Kumar, CIT-DR
Section 10Section 12A

…975] 101 ITR 234 (SC); Indian Chamber of Commerce v. CIT [1975] 101 ITR 796 (SC); Dharmadeepti v. CIT [1978] 114 ITR 454 (SC); CIT v. Surat Art Silk Cloth Manufacturers’ Association [1980] 121 ITR 1 (SC); Aditanar Educational Institution v. CIT (Addl.) [1997] 224 ITR 310 (SC); American Hotel & Lodging Assn. Educational Institute v. CBDT [2008] 301 ITR 86 (SC); and Queens’ Educational Society v. CIT [2015] 372 ITR 699 (SC), the last also approving the decision by the Hon’ble jurisdictional High Court in Pine Grove International Charitable Trust vs. Union of India [2010] 327 ITR 273 (P&H), settled the law, explaini…

M/S. Gujarat Cricket Association, Ahmedabad vs. The Deputy Commissioner of Income Tax Exeptions, Circle-1, Ahmedabad

In the result, ITA No. 2841/Ahd/17, i

ITA 408/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad24 Jan 2019AY 2012-13
Section 11Section 2(15)

…esults incidentally from the activity lawfully carried on by the educational institution, it will not cease to be one existing solely for educational purposes, since the object is not one to make profit. [Aditanar Educational Institution v. Addl CIT [1997] 224 ITR 310 (SC)]. It is inevitable that in carrying on the activities, certain surplus may ensue. The earning of surplus itself would not mean that the appellant existed for profit. ‘Profits’ means that surplus over which the owners of the entity ITA Nos: 1257/Ahd/13, 3303/Ahd/16, 3304/Ahd/16, 408/Ahd/17 (Assessment years: 2009-10, 2010-11, 2011-12 and…

Saurashtra Cricket Association, Rajkot vs. The Dy. CIT (Exemption), Circle-2, Ahmedabad

In the result, ITA No. 2841/Ahd/17, i

ITA 2841/AHD/2017[2014-15]Status: DisposedITAT Ahmedabad24 Jan 2019AY 2014-15
Section 11Section 2(15)

…esults incidentally from the activity lawfully carried on by the educational institution, it will not cease to be one existing solely for educational purposes, since the object is not one to make profit. [Aditanar Educational Institution v. Addl CIT [1997] 224 ITR 310 (SC)]. It is inevitable that in carrying on the activities, certain surplus may ensue. The earning of surplus itself would not mean that the appellant existed for profit. ‘Profits’ means that surplus over which the owners of the entity ITA Nos: 1257/Ahd/13, 3303/Ahd/16, 3304/Ahd/16, 408/Ahd/17 (Assessment years: 2009-10, 2010-11, 2011-12 and…

Saurashtra Cricket Association, Rajkot vs. The Dy. CIT (Exemption), Circle-2, Ahmedabad

In the result, ITA No. 2841/Ahd/17, i

ITA 2840/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad24 Jan 2019AY 2013-14
Section 11Section 2(15)

…esults incidentally from the activity lawfully carried on by the educational institution, it will not cease to be one existing solely for educational purposes, since the object is not one to make profit. [Aditanar Educational Institution v. Addl CIT [1997] 224 ITR 310 (SC)]. It is inevitable that in carrying on the activities, certain surplus may ensue. The earning of surplus itself would not mean that the appellant existed for profit. ‘Profits’ means that surplus over which the owners of the entity ITA Nos: 1257/Ahd/13, 3303/Ahd/16, 3304/Ahd/16, 408/Ahd/17 (Assessment years: 2009-10, 2010-11, 2011-12 and…