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

Dy.Dir. of I.T vs. Shanti Devi Progressive Edu.Socy

ITA - 93 / 1999HC Delhi10 Feb 2011
Section 10(22)

…, would cease to be a charitable purpose. Thus, the pre-dominant object of the activity is the key factor as canvassed by the learned counsel. Similarly, reliance placed on Aditnar Educational Institution v. Additional Commissioner of Income Tax; 224 ITR 310 (SC) was for canvassing an interpretation of Section 10(22) of the IT Act that the availability of the exemption should be evaluated each year to find out whether the institution existed during the relevant year solely for educational purpose and not for the purpose of profit. Any incidental surplus would, of course, not make it a profit…