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

Vellore Institute of Technology, Vellore vs. DCIT, CC IV(1), Chennai

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

ITA 2126/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…

Vellore Institute of Technology, Vellore vs. DCIT, CC IV(1), Chennai

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

ITA 2125/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…

National Education Society, Mumbai vs. CIT (E), Mumbai

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

ITA 6819/MUM/2016[]Status: DisposedITAT Mumbai09 Oct 2018

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

For Appellant: Shri Subodh L. Ratnaparkhi, ARFor Respondent: Shri Santanu Kumar Saikin
Section 10Section 10(23)(vi)

…6. We have gone through the directions provided in the CBDT circular no, 14 of 2015 dated 17.08.2015 which are based upon the directions of the Hon. Supreme Court in the case of American hotel & Lodging Association Educational Institute vs. CBDT & Ors. (2008) 301 ITR 86 (SC). We find that CIT(E) has relied upon the decision in the case of New Noble Educational Society & Ors vs. Chief CIT & Anr, 334 ITR 303 (AP) to deny the approval. However, we find that the said decision actually does not support the Revenue. After going through this decision, we noted that Para nos. 13 & 14 of the decision categorically state t…

Shree Ramkrishna Shikshan Mandal, Mumbai vs. CIT (E), Mumbai

ITA 6818/MUM/2016[]Status: DisposedITAT Mumbai04 Sept 2018

Bench: Hon’Ble Sh. Shamim Yahya, Am & Hon’Ble Sh. Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 6818/Mum/2016

For Appellant: ShriFor Respondent: ShriBhupendra Kumar
Section 10Section 12A

…ational institutions whose existence is solely for the purpose of education." 6.4 The applicant trust has also placed reliance on the judgement of the Hon'ble Supreme Court in the case of American Hotel and Lodging Association Educational Institute vs. CBDT (301 ITR 86)(2008). I have carefully perused the judgement of the Hon'ble Supreme Court. However, it is noted that the issue involved before the Hon'ble Supreme Court was whether the institute was existing for the purpose of education or for the purpose of profit and in that there were other objects in the trust deed that the institute is existing for any oth…

Shree Ekveera Dhyan Prasarak Mandal, Mumbai vs. CIT (E), Mumbai

ITA 6817/MUM/2016[]Status: DisposedITAT Mumbai04 Sept 2018

Bench: Hon’Ble Sh. Shamim Yahya, Am & Hon’Ble Sh. Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 6817/Mum/2016

For Appellant: ShriFor Respondent: ShriBhupendra Kumar
Section 10Section 12A

…ational institutions whose existence is solely for the purpose of education." 6.4 The applicant trust has also placed reliance on the judgement of the Hon'ble Supreme Court in the case of American Hotel and Lodging Association Educational Institute vs. CBDT (301 ITR 86)(2008). I have carefully perused the judgement of the Hon'ble Supreme Court. However, it is noted that the issue involved before the Hon'ble Supreme Court was whether the institute was existing for the purpose of education or for the purpose of profit and in that there were other objects in the trust deed that the institute is existing for any oth…

M/S Church School, Jamshedpur vs. ACIT, Jamshepur

In the result, the appeal of assessee being ITA No

ITA 103/RAN/2016[2011-12]Status: DisposedITAT Ranchi16 May 2018AY 2011-12
For Appellant: Shri Anshul Ringasia, Advocate, ld. ARFor Respondent: Shri P.K. Mondal, JCIT, ld.Sr.DR
Section 10(23)(c)Section 12ASection 143(3)Section 234B

…purpose and the correct test to determine whether an educational purpose and not for purpose of profit is the nature and object of the trust as observed by it in case of Surat art silk 121 ITR 01 (SC), Aditanar 224 ITR31 0 (SC) and American hotel and lodging 301 ITR 86 (SC). 13. Further, he argued that the revenue has now accepted that the assessee is a genuine and Bonafide charitable trust by issuing certificate U/S 12AA of the Act and no reason exist to deny exemption to the Assessee trust and prayed before this honourable bench to delete the addition made by Assessing Officer and confirmed by CIT(A). The ld.…

Sahaj Jeevan Education Trust, Navi Mumbai vs. CIT (E), Mumbai

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

ITA 4493/MUM/2016[2015-16]Status: DisposedITAT Mumbai11 May 2018AY 2015-16

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./I.T.A. No.4493/Mum/2016 ("नधा"रण वष" / Assessment Year: 2015-16) Sahaj Jeevan Education Trust Commissioner Of Income Tax Plot No. 9, S. S. Road, (Exemptions) बनाम/ 6Th Floor, Piramal Chambers, Parel, Sector 44, Seawoods, Nerul, Vs. Navi Mumbai-400 706 Mumbai-400 012 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aabts 9039 G (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri Deepak Raje ""यथ" क" ओर से/Respondent By : Shri Saurabh Kumar Rai

For Appellant: Shri Deepak RajeFor Respondent: Shri Saurabh Kumar Rai
Section 10Section 12A

…ant object would not disentitle the 6 Sahaj Jeevan Education Trust institution from the benefit of exemption u/s. 10(23C)(vi). He also relied upon the following decisions: 1. Americal Hotel & Lodging Association Educational Institute vs. CBDT & Others (2008) 301 ITR 86 (SC); 2. Queen’s Educational Society vs. CIT (2015) 372 ITR 699 (SC); 3. Vanita Vishram Trust vs. CCIT & Another (2010) 327 ITR 121 (Mum); and 4. Allahabad Young Men’s Christian Association vs. CCIT & Others (2015) 371 ITR 23 (All.) 6. He submitted that the ld. Commissioner of Income Tax (Exemptions) without properly appreciating the facts and a…

Director of Income Tax (Exempt vs. The Delhi Public School Society

ITA/1086/2005HC Delhi03 Apr 2018

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA

Section 1Section 10Section 260A

…are per se charitable, the Revenue was duty bound to register the assessee trust/ society in terms of section 12A of the Act. Likewise, the decision of American Hotel & Lodging Association Educational lnstitute v. Central Board of Direct Taxes & Ors(2008) 301 ITR 86 was relied on, where the ITA 1086/2005 & connected matters Page 7 of 31 Supreme Court while allowing the appeal of the petitioner assessee and remanding the matter to the Central Board of Direct Taxes to reconsider afresh the assessee’s application for approval…

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)

…to educating persons.' 7. To the above principles, one further test as laid down in CIT v. Surat Art Silk Cloth Mfrs. Assn. [1978] 121 ITR 1/[1979] 2 Taxman 501 (SC) and culled out in American Hotel & Lodging Association Educational Institute v. CBDT [2008] 301 ITR 86/170 Taxman 306 (SC) 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." (Paragraph 37) The…

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

Accordingly, the appeals for Assessment Years 2010-11 to 2012-13 are allowed to that extent

ITA 2915/MUM/2016[2012-13]Status: DisposedITAT Mumbai25 Jan 2018AY 2012-13

Bench: Shri G.S. Pannu & Shri Amarjit Singh

For Appellant: Shri S. Ananthan &For Respondent: Shri Suman Kumar
Section 10Section 2(15)

…also recognised the necessity for 11 National Institute of Bank Management ITA Nos. 2913 to 2915/M/16, 2506/M/14 & CO 182/M/15 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. ADIT (Exemption) -II (2), Mumbai

Accordingly, the appeals for Assessment Years 2010-11 to 2012-13 are allowed to that extent

ITA 2914/MUM/2016[2011-12]Status: DisposedITAT Mumbai25 Jan 2018AY 2011-12

Bench: Shri G.S. Pannu & Shri Amarjit Singh

For Appellant: Shri S. Ananthan &For Respondent: Shri Suman Kumar
Section 10Section 2(15)

…also recognised the necessity for 11 National Institute of Bank Management ITA Nos. 2913 to 2915/M/16, 2506/M/14 & CO 182/M/15 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. ADIT (Exemption) -II (2), Mumbai

Accordingly, the appeals for Assessment Years 2010-11 to 2012-13 are allowed to that extent

ITA 2913/MUM/2016[2010-11]Status: DisposedITAT Mumbai25 Jan 2018AY 2010-11

Bench: Shri G.S. Pannu & Shri Amarjit Singh

For Appellant: Shri S. Ananthan &For Respondent: Shri Suman Kumar
Section 10Section 2(15)

…also recognised the necessity for 11 National Institute of Bank Management ITA Nos. 2913 to 2915/M/16, 2506/M/14 & CO 182/M/15 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…

ADIT (E) II(2), Mumbai vs. National Institute of Bank Management, Mumbai

Accordingly, the appeals for Assessment Years 2010-11 to 2012-13 are allowed to that extent

ITA 2506/MUM/2014[2009-10]Status: DisposedITAT Mumbai25 Jan 2018AY 2009-10

Bench: Shri G.S. Pannu & Shri Amarjit Singh

For Appellant: Shri S. Ananthan &For Respondent: Shri Suman Kumar
Section 10Section 2(15)

…also recognised the necessity for 11 National Institute of Bank Management ITA Nos. 2913 to 2915/M/16, 2506/M/14 & CO 182/M/15 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…

Modi University of Science and Technology, Sikar vs. Pr. CCIT, Jaipur

In the result, appeal of the assessee in ITA No

ITA 801/JPR/2015[2014-15]Status: DisposedITAT Jaipur14 Jul 2017AY 2014-15

Bench: The Last Date Of Filing Of Such Application Which, Being A Misconception Of Law & 2

For Appellant: Shri Mahendra Gargia (Advocate)For Respondent: Shri B.K. Gupta (CIT)
Section 10

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh HkkxpUn] ys[kk lnL; ,oa Jh dqy Hkkjr] U;kf;d lnL; ds le{k BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM vk;dj vihy la-@ITA No. 801/JP/2015 fu/kZkj.k o"kZ@Assessment Year : 2014-15. cuke M/s Mody University of Science and The Pr. CCIT, Vs. Technology, Lakshmangarh, Sikar, Jaipur, Rajasthan. Rajasthan. LFkk;h ys[kk la-@thvkbZvkj la-@PAN No. AAAJM 1982 F vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri Mahendra Gargia (Advocate) jktLo dh vksj ls@ Revenue by : Shri B.K. Gupt…

Ln Hota & Company, Cuttack vs. ACIT, Cuttack

In the result, the appeals filed by the assessee are dismissed

ITA 572/CTK/2013[2007-08]Status: DisposedITAT Cuttack31 May 2017AY 2007-08

Bench: S/Shri N.S Saini & Pavan Kumar Gadale

For Appellant: Shri S.K.Jena, ARFor Respondent: Shri Kunal Singh, CIT, DR/ D.K.Pradhan, DR
Section 10Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA No.601/CTK/2005: Assessment Year :2002-03 ITA No.602/CTK/2005: Assessment Year :2003-04 ITA No.192/CTK/2008: Assessment Year :1999-2000 ITA No.256/CTK/2008: Assessment Year :2000-2001 ITA No.257/CTK/2008: Assessment Year :2001-2002 ITA No.658/CTK/2008: Assessment Year :2005-2006 ITA No.269/CTK/2009: Assessment Year: 2006-07 Board of Secondary Vs. The ITO, Ward-2(1), Education, Cuttack Cuttack PAN/GIR No. AAAJB 0510 e (Appellant) .. ( Respondent) Assessee by : Shri…

M/S. Roland Educational and Charitable Trust, Ganjam vs. Principal CCIT, Bhubaneswar

ITA 433/CTK/2015[2014-15]Status: DisposedITAT Cuttack29 May 2017AY 2014-15

Bench: Shri N.S. Saini & Shri Kuldip Singhroland Educational & Charitable Trust, Vs. Principal Cit, 2Nd Lane, Gandhi Nagar, Bhubaneshwar, Berhampur, Odisha. District – Ganjam (Odisha).

For Appellant: Shri S.K. Tulsiyan, ARFor Respondent: Shri Kunal Singh, CIT DR
Section 10

…nt trust u/s 10(23C)(vi) of the Act. 6. That the Ld. Principal Chief Commissioner of Income-tax has further erred in not following the principles laid down by the Hon'ble Supreme Court in American Hotel & Lodging Association Educational Institute CBDT (2008) 301 ITR 86(SC) and ignoring that appellant trust was an institution existing solely for education eligible for exemption u/s 10(23C)(vi) of the Act and not for profit. ITA No.433/CTK./2015 3 7. The appellant craves leave to add, amend or modify any ground before or at the time of hearing of the appeal.” 2. Briefly stated the facts necessary for adjudicati…

Roland Institute of Pharmaceutical Sciences, Ganjam vs. Principal CCIT, Bhubaneswar

ITA 432/CTK/2015[2014-15]Status: DisposedITAT Cuttack29 May 2017AY 2014-15

Bench: Shri N.S. Saini & Shri Kuldip Singhroland Educational & Charitable Trust, Vs. Principal Cit, 2Nd Lane, Gandhi Nagar, Bhubaneshwar, Berhampur, Odisha. District – Ganjam (Odisha).

For Appellant: Shri S.K. Tulsiyan, ARFor Respondent: Shri Kunal Singh, CIT DR
Section 10

…nt trust u/s 10(23C)(vi) of the Act. 6. That the Ld. Principal Chief Commissioner of Income-tax has further erred in not following the principles laid down by the Hon'ble Supreme Court in American Hotel & Lodging Association Educational Institute CBDT (2008) 301 ITR 86(SC) and ignoring that appellant trust was an institution existing solely for education eligible for exemption u/s 10(23C)(vi) of the Act and not for profit. ITA No.433/CTK./2015 3 7. The appellant craves leave to add, amend or modify any ground before or at the time of hearing of the appeal.” 2. Briefly stated the facts necessary for adjudicati…

Jyoti Vidyapeeth Trust, Jaipur vs. Principal CCIT, Jaipur

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 696/JPR/2015[]Status: DisposedITAT Jaipur29 May 2017

Bench: The Ld. Pr. Ccit For Seeking Approval U/S 10(23C)(Vi) Of The Act On 22.07.2014. On Perusal Of The Trust Deed & Other Documents Furnished In Support Of The Application, The Pr. Ccit Observed That Various Classes In The Trust Deed Are Not As Per The Provisions Of Section 10(23C)(Vi)

For Appellant: Shri Rajeev Sogani (C.A.)For Respondent: Shri B.K. Gupta (CIT)
Section 10

…f enquiry for approval under 10(23C)(vi) as well as issues requiring considerations at the time of grant of approval came up for consideration before the Hon’ble Supreme Court in the case of American Hotel & Lodging Association, Educational Institute v/s CBDT(301 ITR 86). The Hon’ble Supreme Court analyzed the provisions of section 10(23C)(vi) and various provisos thereto. The Hon’ble Supreme Court came to the conclusion that there are a lot many monitoring mechanisms provided in different provisos to check abuse of exemption provision. These regulatory mechanisms are not to be analysed at the time of grant of ap…

Board of Secondary Education, Cuttack vs. ITO, Cuttack

In the result, the appeals filed by the assessee are dismissed

ITA 601/CTK/2005[2002-03]Status: DisposedITAT Cuttack17 May 2017AY 2002-03

Bench: S/Shri N.S Saini & Pavan Kumar Gadale

For Appellant: Shri S.K.Jena, ARFor Respondent: Shri Kunal Singh, CIT, DR/ D.K.Pradhan, DR
Section 10Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA No.601/CTK/2005: Assessment Year :2002-03 ITA No.602/CTK/2005: Assessment Year :2003-04 ITA No.192/CTK/2008: Assessment Year :1999-2000 ITA No.256/CTK/2008: Assessment Year :2000-2001 ITA No.257/CTK/2008: Assessment Year :2001-2002 ITA No.658/CTK/2008: Assessment Year :2005-2006 ITA No.269/CTK/2009: Assessment Year: 2006-07 Board of Secondary Vs. The ITO, Ward-2(1), Education, Cuttack Cuttack PAN/GIR No. AAAJB 0510 e (Appellant) .. ( Respondent) Assessee by : Shri S…

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

…he said line of arguments put forward by Revenue and referred to its earlier decisions rendered in case of Surat Art Silk Cloth Manufacturing (121 ITR 1), Aditanar Educational Institution (224 ITR 310) and American Hotel & lodging Assn. Educational Institute (301 ITR 86) 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 surplus does not lea…