American Hotel and Lodging Association Educational Institute v. CBDT

301 ITR 86Supreme Court of India2008#963 most cited

What is American Hotel and Lodging Association Educational Institute v. CBDT authority for?

An educational institution is eligible for exemption under Section 10(23C)(vi) if it exists solely for educational purposes, even if it generates incidental profits. The mere existence of profit does not disqualify an institution from exemption.

111

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

American Hotel and Lodging Association Educational Institute · CBDT · 301 ITR 86 · SC · Section 10(23C)(vi) · educational institution exemption · sole purpose of education · incidental profit

Sections most often in play

Section 2(15)Section 11Section 10(23C)Section 11(4)Section 234ASection 234BSection 32Section 12

Issues it is cited on

section 10(22)section 11(4)advancement of general public utilitysection 10(23c)(vi)proviso to section 2(15)section 10(23c)section 2(15)credit for tdsinterest under section 234asection 32childsection 10

Judgments citing American Hotel and Lodging Association Educational Institute v. CBDT

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) &

…s 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 institution carries on the activity of education primarily for educating persons, the fact that it makes a su…

Advocaye Welfare Fund Trustee Committee, New Delhi vs. CIT(E), New Delhi

ITA 9334/DEL/2019[-]Status: DisposedITAT Delhi08 Jul 2020

Bench: Shri Kuldip Singh

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri Sanjay Goel, CIT DR
Section 12ASection 23Section 3Section 4Section 80G

…India and such is a charitable institution; and relied upon the decisions rendered by Hon’ble Supreme Court in the cases of CIT vs. Bar Council of Maharashtra cited as 130 ITR 28 & American Hotel and Lodging Association Educational Institute vs. CBDT & Ors. 301 ITR 86, Hon’ble Bombay High court in Bar Council of Maharashtra vs. CIT reported in 126 ITR 27, Hon’ble Kerala High Court in Sree Anjaneya Medical Trust vs. CIT 382 ITR 399 and Hon’ble Punjab & Haryana High Court in CIT vs. Baba Kartar Singh Dukki Educational trust (2014) 221 taxman 493 (P&H). 8. Ld. DR for the Revenue supported the order passed by the…

Bar Council of Delhi, New Delhi vs. CIT(E), New Delhi

ITA 9333/DEL/2019[-]Status: DisposedITAT Delhi02 Jul 2020

Bench: Shri Kuldip Singh

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri Sanjay Goel, CIT DR
Section 10Section 12ASection 2(15)Section 3(1)(f)Section 80G

…1961 and is duly notified by the Government and relied upon the decisions rendered by Hon’ble Supreme Court in the cases of CIT vs. Bar Council of Maharashtra cited as 130 ITR 28 & American Hotel and Lodging Association Educational Institute vs. CBDT & Ors. 301 ITR 86, Hon’ble Bombay High court in Bar Council of Maharashtra vs. CIT reported in 126 ITR 27, Hon’ble Kerala High Court in Sree Anjaneya Medical Trust vs. CIT 382 ITR 399 and Hon’ble Punjab & Haryana High Court in CIT vs. Baba Kartar Singh Dukki Educational trust (2014) 221 taxman 493 (P&H). 8. Ld. DR for the Revenue supported the order passed by the…

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) &

…s 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 institution carries on the activity of education primarily for educating persons, the fact that it makes a su…

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) &

…s 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 institution carries on the activity of education primarily for educating persons, the fact that it makes a su…

ITO (E), New Delhi vs. M/S. Society Fo Participatory Research in Asia, New Delhi

In the result, appeal of the Revenue is dismissed

ITA 6165/DEL/2016[2012-13]Status: DisposedITAT Delhi05 Nov 2019AY 2012-13

Bench: Shri Amit Shukla & Shri O.P.Meena

Section 10(22)Section 11Section 12ASection 2(15)Section 80G

…of the Assessee society.” 7 As regards the basis of surplus, the Hon’ble Apex Court in the case of Queen’s Educational Society v. CIT 372 ITR 699 has referred to the judgment in the case of American Hotel & Lodging Association, Educational Institute v. CBDT 301 ITR 86 (SC) and noted as under: “11. Thus, the law common to Section 10(23C)(iiiad) and (vi) may be summed up as foll0ws: (1) Where an educational institution carries on the activity of education primarily for educating persons, the fact that it meaks a surplus does not lead to the conclusion that it ceases to exist solely for educational purposes and b…

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

…nai, 343 ITR 300, the decision of the Hon'ble Karnataka High Court in the case of CIT vs. Marina Social Service Society, 408 ITR 462, the decision of the Hon'ble Supreme Court in the case of American Hotel & Lodging Association Educational Institute vs. CBDT, 301 ITR 86, decision of the Hon'ble Patna High Court in the case of St. Michaels Educational Association vs. CIT vide Miscellaneous Appeal No.438 of 2015, order dated 13th August, 2019 and various other decisions, he submitted that the question whether exemption u/s 11 of the Act would be admissible to the 23 assessee would be a question to be gone into in t…

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)

…Page 8 of 21 ITA No.- 5191/Del/2016 India International Centre. make profit. The decisive or acid test is whether, on an overall view of the matter, the object is to make profit. In American Hotel and Lodging Association Educational Institute v. CBDT [2008] 301 ITR 86 (SC), their Lordships have laid down the principle on following terms: - “In Addl. CIT v. Surat Art Silk Cloth Manufacturers Association reported in [1980] 121 ITR 1 (SC), it has been held by this court that the test of predominant object of the activity is to be seen whether it exists solely for education and not to earn profit. However, the purp…

Maharashtra State Road Transport Corporation, Mumbai vs. ACIT (Exemption) -2(1), Mumbai

In the result, assessee’s appeal stands allowed

ITA 5577/MUM/2017[2012-13]Status: DisposedITAT Mumbai08 Aug 2019AY 2012-13

Bench: Shri Shamim Yahya (Am) & Shri Amarjit Singh (Jm)

Section 11Section 12Section 12ASection 13(8)Section 2Section 2(15)

…. Pai Foundation vs State of Karnataka, (2002) 8 SCC 481, wherein the Hon'ble Supreme Court has also recognised the necessity for the educational institution to generate funds for its betterment and growth. In the case of American Hotel & Lodging Association, 301 ITR 86 (SC), the Hon'ble Supreme Court was dealing with an entity engaged in providing world-recognised curriculum for all hospitality education programs in India by making them available through text, course material and other software programmes in India. Apart from accepting this activity to be in the realm of education, the Hon'ble Court also observe…

National Institute of Bank Management, Mumbai vs. DCIT (Exemption) - 2(1), Mumbai

In the result assessee's appeals are allowed for statistical purposes

ITA 3871/MUM/2018[2008-09]Status: DisposedITAT Mumbai02 Aug 2019AY 2008-09

Bench: Shri Shamim Yahya (Am) & Shri Sandeep Gosain (Jm)

Section 11Section 2(15)

…2002) 8 SCC 481, wherein the Hon'ble Supreme Court has also recognised the necessity for the educational institution to generate funds for its betterment and growth. In 4 National Institute of Bank Management the case of American Hotel & Lodging Association, 301 ITR 86 (SC), the Hon'ble Supreme Court was dealing with an entity engaged in providing world-recognised curriculum for all hospitality education programs in India by making them available through text, course material and other software programmes in India. Apart from accepting this activity to be in the realm of education, the Hon'ble Court also observe…

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

…madeepti 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, explaining that on an overall view of the matter the object should not be to make profit, i.e.…

M/S.Kunhitharuvai Memorial Charitable Trust, Calicut vs. The DCIT, Cen-Circle-2, Calicut

In the result, the appeals filed by the assessee are disposed of as follows:

ITA 261/COCH/2018[2012-13]Status: DisposedITAT Cochin27 May 2019AY 2012-13

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 10ASection 11Section 11(5)Section 12ASection 13Section 13(1)(c)Section 132Section 139(1)Section 153A

…applied the profit of the assessee-Trust for charitable activities which is sufficient for claiming exemption u/s. 11 of the Act. For this proposition, he relied on the following Supreme Court judgments: 1) American Hotel and Lodging Association vs. CBDT (301 ITR 86) (SC) 2) Queen’s Educational Society vs. CIT (372 ITR 699) (SC) 3) Chief CIT vs. St Peter’s Educational Soceity (385 ITR 66) (SC) 4) Visvesvaraya Technological University vs. ACIT (385 ITR 37) (SC) 5.2 Further, it was submitted that the assessee is solely existing for the purpose of imparting education. Hence, the assessee cannot be denied exemp…

M/S.Kunhitharuvai Memorial Charitable Trust, Calicut vs. The DCIT, Cen-Circle-2, Calicut

In the result, the appeals filed by the assessee are disposed of as follows:

ITA 260/COCH/2018[2011-12]Status: DisposedITAT Cochin27 May 2019AY 2011-12

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 10ASection 11Section 11(5)Section 12ASection 13Section 13(1)(c)Section 132Section 139(1)Section 153A

…applied the profit of the assessee-Trust for charitable activities which is sufficient for claiming exemption u/s. 11 of the Act. For this proposition, he relied on the following Supreme Court judgments: 1) American Hotel and Lodging Association vs. CBDT (301 ITR 86) (SC) 2) Queen’s Educational Society vs. CIT (372 ITR 699) (SC) 3) Chief CIT vs. St Peter’s Educational Soceity (385 ITR 66) (SC) 4) Visvesvaraya Technological University vs. ACIT (385 ITR 37) (SC) 5.2 Further, it was submitted that the assessee is solely existing for the purpose of imparting education. Hence, the assessee cannot be denied exemp…

M/S.Kunhitharuvai Memorial Charitable Trust, Calicut vs. The DCIT, Cen-Circle-2, Calicut

In the result, the appeals filed by the assessee are disposed of as follows:

ITA 259/COCH/2018[2010-11]Status: DisposedITAT Cochin27 May 2019AY 2010-11

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 10ASection 11Section 11(5)Section 12ASection 13Section 13(1)(c)Section 132Section 139(1)Section 153A

…applied the profit of the assessee-Trust for charitable activities which is sufficient for claiming exemption u/s. 11 of the Act. For this proposition, he relied on the following Supreme Court judgments: 1) American Hotel and Lodging Association vs. CBDT (301 ITR 86) (SC) 2) Queen’s Educational Society vs. CIT (372 ITR 699) (SC) 3) Chief CIT vs. St Peter’s Educational Soceity (385 ITR 66) (SC) 4) Visvesvaraya Technological University vs. ACIT (385 ITR 37) (SC) 5.2 Further, it was submitted that the assessee is solely existing for the purpose of imparting education. Hence, the assessee cannot be denied exemp…

M/S.Kunhitharuvai Memorial Charitable Trust, Calicut vs. The DCIT, Cen-Circle-2, Calicut

In the result, the appeals filed by the assessee are disposed of as follows:

ITA 258/COCH/2018[2009-10]Status: DisposedITAT Cochin27 May 2019AY 2009-10

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 10ASection 11Section 11(5)Section 12ASection 13Section 13(1)(c)Section 132Section 139(1)Section 153A

…applied the profit of the assessee-Trust for charitable activities which is sufficient for claiming exemption u/s. 11 of the Act. For this proposition, he relied on the following Supreme Court judgments: 1) American Hotel and Lodging Association vs. CBDT (301 ITR 86) (SC) 2) Queen’s Educational Society vs. CIT (372 ITR 699) (SC) 3) Chief CIT vs. St Peter’s Educational Soceity (385 ITR 66) (SC) 4) Visvesvaraya Technological University vs. ACIT (385 ITR 37) (SC) 5.2 Further, it was submitted that the assessee is solely existing for the purpose of imparting education. Hence, the assessee cannot be denied exemp…

M/S.Kunhitharuvai Memorial Charitable Trust, Calicut vs. The DCIT, Cen-Circle-2, Calicut

In the result, the appeals filed by the assessee are disposed of as follows:

ITA 257/COCH/2018[2008-09]Status: DisposedITAT Cochin27 May 2019AY 2008-09

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 10ASection 11Section 11(5)Section 12ASection 13Section 13(1)(c)Section 132Section 139(1)Section 153A

…applied the profit of the assessee-Trust for charitable activities which is sufficient for claiming exemption u/s. 11 of the Act. For this proposition, he relied on the following Supreme Court judgments: 1) American Hotel and Lodging Association vs. CBDT (301 ITR 86) (SC) 2) Queen’s Educational Society vs. CIT (372 ITR 699) (SC) 3) Chief CIT vs. St Peter’s Educational Soceity (385 ITR 66) (SC) 4) Visvesvaraya Technological University vs. ACIT (385 ITR 37) (SC) 5.2 Further, it was submitted that the assessee is solely existing for the purpose of imparting education. Hence, the assessee cannot be denied exemp…

M/S.Kunhitharuvai Memorial Charitable Trust, Calicut vs. The DCIT, Cen-Circle-2, Calicut

In the result, the appeals filed by the assessee are disposed of as follows:

ITA 256/COCH/2018[2007-08]Status: DisposedITAT Cochin27 May 2019AY 2007-08

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 10ASection 11Section 11(5)Section 12ASection 13Section 13(1)(c)Section 132Section 139(1)Section 153A

…applied the profit of the assessee-Trust for charitable activities which is sufficient for claiming exemption u/s. 11 of the Act. For this proposition, he relied on the following Supreme Court judgments: 1) American Hotel and Lodging Association vs. CBDT (301 ITR 86) (SC) 2) Queen’s Educational Society vs. CIT (372 ITR 699) (SC) 3) Chief CIT vs. St Peter’s Educational Soceity (385 ITR 66) (SC) 4) Visvesvaraya Technological University vs. ACIT (385 ITR 37) (SC) 5.2 Further, it was submitted that the assessee is solely existing for the purpose of imparting education. Hence, the assessee cannot be denied exemp…

M/S.Kunhitharuvai Memorial Charitable Trust, Calicut vs. The DCIT, Cen-Circle-2, Calicut

In the result, the appeals filed by the assessee are disposed of as follows:

ITA 255/COCH/2018[2006-07]Status: DisposedITAT Cochin27 May 2019AY 2006-07

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 10ASection 11Section 11(5)Section 12ASection 13Section 13(1)(c)Section 132Section 139(1)Section 153A

…applied the profit of the assessee-Trust for charitable activities which is sufficient for claiming exemption u/s. 11 of the Act. For this proposition, he relied on the following Supreme Court judgments: 1) American Hotel and Lodging Association vs. CBDT (301 ITR 86) (SC) 2) Queen’s Educational Society vs. CIT (372 ITR 699) (SC) 3) Chief CIT vs. St Peter’s Educational Soceity (385 ITR 66) (SC) 4) Visvesvaraya Technological University vs. ACIT (385 ITR 37) (SC) 5.2 Further, it was submitted that the assessee is solely existing for the purpose of imparting education. Hence, the assessee cannot be denied exemp…

DCIT, Central Circle 1(1), Chennai vs. Vellore Institute of Technology, Vellore

Appeals of the Revenue are dismissed whereas that of assessee are partly allowed

ITA 2220/CHNY/2017[2006-07]Status: DisposedITAT Chennai14 Nov 2018AY 2006-07

Bench: Shri Abraham P. George & Shri Duvvuru Rl Reddy]

For Appellant: Shri. A. Mahesh, C.A
Section 11Section 12ASection 13(1)Section 132Section 153A

…at the 'institution' existed for educational purposes in the relevant year and even if any profit resulted which was only incidental to the purpose of education, the income would be ... ". American Hotel & Lodging Association Educational Institutes vs. CBDT - 301 ITR 86 (SC) " ... The mere existence of profit I surplus did not disqualify the institution ... ". ACIT vs. Surat Art Silk Cloth Manufacturers Association - 121 ITR 1 (SC) - 5 member bench " ... Not involving any activity for profit -meaning and scope ... " " ... So long as the purpose does not involve the carrying on of any activity for profit, the requ…

DCIT, Central Circle 1(1), Chennai vs. Vellore Institute of Technology, Vellore

Appeals of the Revenue are dismissed whereas that of assessee are partly allowed

ITA 2219/CHNY/2017[2005-06]Status: DisposedITAT Chennai14 Nov 2018AY 2005-06

Bench: Shri Abraham P. George & Shri Duvvuru Rl Reddy]

For Appellant: Shri. A. Mahesh, C.A
Section 11Section 12ASection 13(1)Section 132Section 153A

…at the 'institution' existed for educational purposes in the relevant year and even if any profit resulted which was only incidental to the purpose of education, the income would be ... ". American Hotel & Lodging Association Educational Institutes vs. CBDT - 301 ITR 86 (SC) " ... The mere existence of profit I surplus did not disqualify the institution ... ". ACIT vs. Surat Art Silk Cloth Manufacturers Association - 121 ITR 1 (SC) - 5 member bench " ... Not involving any activity for profit -meaning and scope ... " " ... So long as the purpose does not involve the carrying on of any activity for profit, the requ…