Queen’s Educational Society v. CIT

372 ITR 699Supreme Court of India2015#653 most cited

What is Queen’s Educational Society v. CIT authority for?

An educational institution that generates a surplus does not automatically lose its charitable status or cease to exist solely for educational purposes. This is true if the surplus is reinvested for its educational objectives, and the predominant object test determines if the institution's primary aim is education or profit.

152

judgments rely on this decision, according to BharatTax’s citation analysis of 370,744 Indian tax judgments — from 2011 to 2026.

Also referred to as

Queen's Educational Society v. CIT · Section 11 · Section 10(23C) · Section 2(15) · Section 12A · educational institution surplus · charitable purpose profit motive · predominant object test · income tax exemption

Also reported as

55 Taxmann.com 255

Sections most often in play

Section 11Section 12AASection 143(3)Section 142(1)Section 2(15)Section 10(23C)(v)Section 12ASection 139(4A)
Read the full judgment

Issues it is cited on

section 13(1)(c)(ii)section 10(22)section 158asection 13(3)section 10(23c)(vi)proviso to section 2(15)section 13(1)(c)section 13(1)interest free advancessection 10(23c)section 2(15)application of income

Judgments citing Queen’s Educational Society v. CIT

DCIT, Chennai vs. M/S Sindhi Educational Society ( Madras ), Chennai

In the result, appeals filed by the Revenue for all the assessment

ITA 976/CHNY/2022[2014-2015]Status: DisposedITAT Chennai15 Sept 2023AY 2014-2015

Bench: Shri. V. Durga Rao, Hon’Ble & Shri. Manjunatha. G, Hon’Ble

For Respondent: Mr.P. Sajit Kumar, JCIT
Section 11Section 11(1)(d)Section 2(24)(iia)

…ions cannot be construed as for the purpose of charitable objective and also not in the character of voluntary contributions u/s.2(24)(iia). 2.7 The CIT(A) erred in holding that the decision of the Supreme Court in the case of Queens Elizabeth Society Vs CIT 372 ITR 699 is squarely applicable to the facts of the case and theory of capitation fee referred cannot be equated with the "Corpus donations" in the case of assessee. Since the corpus donations are not voluntary in nature and they are nothing but capitation fee, the assessee should not be given benefit of Sec.11 of the Act. ITA Nos.975 to 981/Chny/2022 ::…

DCIT, Chennai vs. M/S Sindhi Educational Society ( Madras ), Chennai

In the result, appeals filed by the Revenue for all the assessment

ITA 975/CHNY/2022[2013-2014]Status: DisposedITAT Chennai15 Sept 2023AY 2013-2014

Bench: Shri. V. Durga Rao, Hon’Ble & Shri. Manjunatha. G, Hon’Ble

For Respondent: Mr.P. Sajit Kumar, JCIT
Section 11Section 11(1)(d)Section 2(24)(iia)

…ions cannot be construed as for the purpose of charitable objective and also not in the character of voluntary contributions u/s.2(24)(iia). 2.7 The CIT(A) erred in holding that the decision of the Supreme Court in the case of Queens Elizabeth Society Vs CIT 372 ITR 699 is squarely applicable to the facts of the case and theory of capitation fee referred cannot be equated with the "Corpus donations" in the case of assessee. Since the corpus donations are not voluntary in nature and they are nothing but capitation fee, the assessee should not be given benefit of Sec.11 of the Act. ITA Nos.975 to 981/Chny/2022 ::…

The ACIT-2(1), Bhopal vs. M/S. Rishiraj Memorial Education and Welfare Society, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 336/IND/2017[2013-14]Status: DisposedITAT Indore21 Jul 2023AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

…g huge The issue of generation of surplus vis-à- vis surplus from its educational charitable has been set at rest by Hon'ble Supreme activities, every year. This proves Court in the case of Queens Educational Society vs that the assessee Society is CIT [2015] 372 ITR 699 (SC) holding that where a operating like a business venture surplus was made by educational institution which and carrying out commercial was ploughed back for educational purposes, said activities in the guise of charitable institutions was held to be existed solely for activities so as to claim benefit of educational purposes and not for purpos…

The ACIT-2(1), Bhopal vs. M/S. Rishiraj Memorial Education and Welfare Society, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 335/IND/2017[2012-13]Status: DisposedITAT Indore21 Jul 2023AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

…g huge The issue of generation of surplus vis-à- vis surplus from its educational charitable has been set at rest by Hon'ble Supreme activities, every year. This proves Court in the case of Queens Educational Society vs that the assessee Society is CIT [2015] 372 ITR 699 (SC) holding that where a operating like a business venture surplus was made by educational institution which and carrying out commercial was ploughed back for educational purposes, said activities in the guise of charitable institutions was held to be existed solely for activities so as to claim benefit of educational purposes and not for purpos…

The DCIT-2(1), Bhopal vs. M/S. Jai Narain Shiksha Samiti, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 268/IND/2017[2013-14]Status: DisposedITAT Indore21 Jul 2023AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

…g huge The issue of generation of surplus vis-à- vis surplus from its educational charitable has been set at rest by Hon'ble Supreme activities, every year. This proves Court in the case of Queens Educational Society vs that the assessee Society is CIT [2015] 372 ITR 699 (SC) holding that where a operating like a business venture surplus was made by educational institution which and carrying out commercial was ploughed back for educational purposes, said activities in the guise of charitable institutions was held to be existed solely for activities so as to claim benefit of educational purposes and not for purpos…

The DCIT-2(1), Bhopal vs. M/S. Jai Narain Shiksha Samiti, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 267/IND/2017[2012-13]Status: DisposedITAT Indore21 Jul 2023AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

…g huge The issue of generation of surplus vis-à- vis surplus from its educational charitable has been set at rest by Hon'ble Supreme activities, every year. This proves Court in the case of Queens Educational Society vs that the assessee Society is CIT [2015] 372 ITR 699 (SC) holding that where a operating like a business venture surplus was made by educational institution which and carrying out commercial was ploughed back for educational purposes, said activities in the guise of charitable institutions was held to be existed solely for activities so as to claim benefit of educational purposes and not for purpos…

The DCIT-2(1), Bhopal vs. M/S. Hai Hay Kshatriya Education Society, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 266/IND/2017[2013-14]Status: DisposedITAT Indore21 Jul 2023AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

…g huge The issue of generation of surplus vis-à- vis surplus from its educational charitable has been set at rest by Hon'ble Supreme activities, every year. This proves Court in the case of Queens Educational Society vs that the assessee Society is CIT [2015] 372 ITR 699 (SC) holding that where a operating like a business venture surplus was made by educational institution which and carrying out commercial was ploughed back for educational purposes, said activities in the guise of charitable institutions was held to be existed solely for activities so as to claim benefit of educational purposes and not for purpos…

The DCIT-2(1), Bhopal vs. M/S. Hai Hay Kshatriya Education Society, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 265/IND/2017[2012-13]Status: DisposedITAT Indore21 Jul 2023AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

…g huge The issue of generation of surplus vis-à- vis surplus from its educational charitable has been set at rest by Hon'ble Supreme activities, every year. This proves Court in the case of Queens Educational Society vs that the assessee Society is CIT [2015] 372 ITR 699 (SC) holding that where a operating like a business venture surplus was made by educational institution which and carrying out commercial was ploughed back for educational purposes, said activities in the guise of charitable institutions was held to be existed solely for activities so as to claim benefit of educational purposes and not for purpos…

The DCIT-2(1), Bhopal vs. M/S. H.K. Kalchuri Education Trust, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 264/IND/2017[2013-14]Status: DisposedITAT Indore21 Jul 2023AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

…g huge The issue of generation of surplus vis-à- vis surplus from its educational charitable has been set at rest by Hon'ble Supreme activities, every year. This proves Court in the case of Queens Educational Society vs that the assessee Society is CIT [2015] 372 ITR 699 (SC) holding that where a operating like a business venture surplus was made by educational institution which and carrying out commercial was ploughed back for educational purposes, said activities in the guise of charitable institutions was held to be existed solely for activities so as to claim benefit of educational purposes and not for purpos…

The DCIT-2(1), Bhopal vs. M/S. H.K. Kalchuri Education Trust, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 263/IND/2017[2012-13]Status: DisposedITAT Indore21 Jul 2023AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

…g huge The issue of generation of surplus vis-à- vis surplus from its educational charitable has been set at rest by Hon'ble Supreme activities, every year. This proves Court in the case of Queens Educational Society vs that the assessee Society is CIT [2015] 372 ITR 699 (SC) holding that where a operating like a business venture surplus was made by educational institution which and carrying out commercial was ploughed back for educational purposes, said activities in the guise of charitable institutions was held to be existed solely for activities so as to claim benefit of educational purposes and not for purpos…

Indian Institute of Banking and Finance ( Formerly Known As the Indian Institute of Bankers), Mumbai vs. CIT (Exemptions), Mumbai

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

ITA 875/MUM/2021[2019-21]Status: DisposedITAT Mumbai17 May 2023AY 2019-21

Bench: Shri Om Prakash Kant & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Purushottam Tripuri
Section 10Section 10(22)Section 2(15)

…able organisations set up for the advancement of objects of general public utility and the same was wrongly adopted in subsequent decisions in American Hotel and Lodging Association vs CBDT, [2008] 301 ITR 86 (SC) and Queen's Educational Society v. CIT [2015] 372 ITR 699 (SC). Accordingly, The Indian Institute Of Banking & Finance (Formerly known as The Indian Institute of Bankers) A.Y. 2016–17, 2017–18, 2018–19, 2019–20 the Hon‟ble Supreme Court overruled the decisions rendered in American Hotel and Lodging Association (supra) and Queen's Educational Society (supra). We find that the Hon‟ble Supreme Court in Ne…

Indian Institute of Banking and Finance ( Formerly Known As the Indian Institute of Bankers), Mumbai vs. CIT (Exemptions), Mumbai

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

ITA 874/MUM/2021[2016-17]Status: DisposedITAT Mumbai17 May 2023AY 2016-17

Bench: Shri Om Prakash Kant & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Purushottam Tripuri
Section 10Section 10(22)Section 2(15)

…able organisations set up for the advancement of objects of general public utility and the same was wrongly adopted in subsequent decisions in American Hotel and Lodging Association vs CBDT, [2008] 301 ITR 86 (SC) and Queen's Educational Society v. CIT [2015] 372 ITR 699 (SC). Accordingly, The Indian Institute Of Banking & Finance (Formerly known as The Indian Institute of Bankers) A.Y. 2016–17, 2017–18, 2018–19, 2019–20 the Hon‟ble Supreme Court overruled the decisions rendered in American Hotel and Lodging Association (supra) and Queen's Educational Society (supra). We find that the Hon‟ble Supreme Court in Ne…

Indian Institution of Banking and Finance (Formerly Known As the India Institute of Bankers), Mumbai vs. CIT (Exemption), Mumbai

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

ITA 6955/MUM/2019[2018-19]Status: DisposedITAT Mumbai17 May 2023AY 2018-19

Bench: Shri Om Prakash Kant & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Purushottam Tripuri
Section 10Section 10(22)Section 2(15)

…able organisations set up for the advancement of objects of general public utility and the same was wrongly adopted in subsequent decisions in American Hotel and Lodging Association vs CBDT, [2008] 301 ITR 86 (SC) and Queen's Educational Society v. CIT [2015] 372 ITR 699 (SC). Accordingly, The Indian Institute Of Banking & Finance (Formerly known as The Indian Institute of Bankers) A.Y. 2016–17, 2017–18, 2018–19, 2019–20 the Hon‟ble Supreme Court overruled the decisions rendered in American Hotel and Lodging Association (supra) and Queen's Educational Society (supra). We find that the Hon‟ble Supreme Court in Ne…

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, all the appeals by the assessee are dismissed

ITA 7447/MUM/2018[2017-18]Status: DisposedITAT Mumbai17 May 2023AY 2017-18

Bench: Shri Om Prakash Kant & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Purushottam Tripuri
Section 10Section 10(22)Section 2(15)

…able organisations set up for the advancement of objects of general public utility and the same was wrongly adopted in subsequent decisions in American Hotel and Lodging Association vs CBDT, [2008] 301 ITR 86 (SC) and Queen's Educational Society v. CIT [2015] 372 ITR 699 (SC). Accordingly, The Indian Institute Of Banking & Finance (Formerly known as The Indian Institute of Bankers) A.Y. 2016–17, 2017–18, 2018–19, 2019–20 the Hon‟ble Supreme Court overruled the decisions rendered in American Hotel and Lodging Association (supra) and Queen's Educational Society (supra). We find that the Hon‟ble Supreme Court in Ne…

M/S. Leh Nutrition Project, Leh Ladkh vs. The Dy. Commissioner of Income-Tax, Srinagar

In the result, the appeal of the assessee is allowed

ITA 364/ASR/2014[2010-11]Status: DisposedITAT Amritsar16 Nov 2022AY 2010-11

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

For Appellant: Sh. Tarun Bansal, AdvFor Respondent: Sh. S. M. Surendranath, Sr. DR
Section 12ASection 12A(2)Section 143(3)

…d at Pb 514 to 525. 2) Written arguments of Amended Legal Ground No. 1 dtd. 04-07-16 is at PB- 452 onwards. 3) written arguments of Amended Legal Ground No. 2 to 5 dtd. 04-07-16 is at PB-453 onwards. 4) Case Law of Queen's Educational Society vs. CIT (2015) 372 ITR 699 (sc) (Refer Para 25 at page 569 ) Copy enclosed at page 552 to 570 .” Synopsis dated 13.10.2022 Synopsis on legal ground taken as additional ground filed on 18-05-19 “1. In this case registration was granted for A.Y 2011-12 but the case pending before A.O was AY 2010-11. But the registration was there at the time of reopening of the case by A.…

Career Educom Academy, Raipur vs. Commissioner of Income Tax (Exemption), Bhopal

In the result, the appeal of assessee is allowed

ITA 204/RPR/2018[section 80G]Status: DisposedITAT Raipur21 Sept 2022

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अऩीऱ सं./Ita No.204/Rpr/2018 (ननधाारण वषा / Assessment Year :Na) Career Educom Academy, Vs Cit(Exemption), Bhopal Jalvihar Colony, Raipur-492001 Pan No. : Aaecc 3374 J (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Shri R.B.Doshi, CAFor Respondent: Shri Sanjay Kumar, Sr. DR
Section 12ASection 13(1)(c)Section 80GSection 80G(5)Section 80G(5)(vi)

…legislature is unambiguously clear that carrying out the activity of 'education' itself is charitable….” 7. Regarding generating surplus, we take guidance from the principle laid down by the Apex Court in the case of Queens Education Society of India Vs CIT, 372 ITR 699(SC), wherein Apex Court has held that “Merely because an educational institution happens to earn surplus then by the 5 facts itself it would not be held that education institution is not charitable and will not lose the benefit of exemption under the law by that fact alone.‟ 8. It is further relevant to refer to the decision of coordinate bench o…

The Rediant Way School, Raipur (Cg) vs. The the Chif Commisioner of Income Tax, Raipur (Cg)

In the result, the appeal of assessee is allowed

ITA 15/BIL/2017[2013-14]Status: DisposedITAT Raipur21 Sept 2022AY 2013-14
For Appellant: Shri Abhishek Mahawar, CAFor Respondent: Shri P.K.Mishra, CIT-DR
Section 10Section 253

…आयकर अऩीऱीय अधधकरण, रायऩुर न्यायऩीठ, रायऩुर IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR श्री रविश सूद, न्याययक सदस्य एवं श्री अरुण खोड़वऩया, ऱेखा सदस्य के समक्ष । BEFORE SHRI RAVISH SOOD, JM & SHRI ARUN KHODPIA, AM आयकर अऩीऱ सं./ITA No.15/RPR/2017 (ननधाारण वषा / Assessment Year :NA) The Radiant Way School, Vs CCIT, Raipur C/o Shree Mangal Dube Memorial Education Society, Pt. Ravishankar University Campus Raipur PAN No. : AAMTS 3251 M (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee by : Shri Abhishek Mahawar, CA राजस्व की ओर से /Revenue by : Shri P.K.Mishra, CIT-DR सुनिाई…

Ubaidulla Educational Foundation, Rajaghiri vs. CIT (Exemptions), Chennai

In the result, appeal of the assessee is allowed

ITA 3401/CHNY/2018[2017-18]Status: DisposedITAT Chennai19 Aug 2022AY 2017-18

Bench: Shri Mahavir Singh & Shri Girish Agrawalassessment Year: 2017-18 Ubaidulla Educational Foundation C.I.T. (Exemption), Chennai 5/2, Jamalia Street Vs Rajagiri, Papanasam District - Thanjavur [Tamil Nadu] Pin -614207 [Pan: Aabcu6415D अपीलाथ"/ (Appellant) "" यथ"/ (Respondent)

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Shri AR V Sreenivasan, Addl. CIT
Section 10Section 25

…आयकर अपील"य अ"धकरण, “चे"नई“ "यायपीठ चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI ] ] BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER Assessment Year: 2017-18 Ubaidulla Educational Foundation C.I.T. (Exemption), Chennai 5/2, Jamalia Street Vs Rajagiri, Papanasam District - Thanjavur [Tamil Nadu] Pin -614207 [PAN: AABCU6415D अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee by : Shri S. Sridhar, Advocate Revenue by : Shri AR V Sreenivasan, Addl. CIT सुनवाई क" तार"ख/Date of Hearing : 24/05/2022 घोषणा क" तार"ख /Date of Pronouncement : 19/08/2022 आदेश/O R D E…

DCIT (E)-1(1), Mumbai vs. B P Marine Academy, Navi Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 963/MUM/2019[2014-15]Status: DisposedITAT Mumbai13 Jul 2022AY 2014-15
Section 11Section 12ASection 2(15)

…r of Commerce was to promote and protect trade commerce and industries and therefore, falling under the definition of "Charitable" under other objects of public benefit. Similarly, the CIT (A) also relied upon judgment in the case of Queens Education Society [372 ITR 699(SC)] in which it was held that the correct tests which have been culled out in the Apex Court decisions as stated above, namely, Surat Art Silk Cloth Aditanar and American Hotel and Lodging, would all apply to determine whether an educational institution exists solely for educational purposes and not for purposes of profit." Similarly, we also fi…

Income Tax Officer(Exemption) Ward-1(1), Mumbai vs. Association of Physicians of India, Mumbai

In the result, Ground No.1 of the assessee‟s appeal is allowed

ITA 974/MUM/2022[2017-18]Status: DisposedITAT Mumbai30 Jun 2022AY 2017-18
Section 11Section 143Section 2(15)Section 28

…ed. 11.3 The courts have stated that if the activities are being carried on as part of charitable object, it cannot be said to be in the nature of trade, commerce or business. The Hon‟ble Supreme Court in the case of Queen‟s Educational Society vs. CIT [2015] 372 ITR 699 (SC) has held that a surplus arising from activities would not necessarily mean that institution is being carried on „for profit‟. The Hon‟ble Gujarat High Court in the case of DIT(Exemption) vs. Gujarat Cricket Association Tax Appeal No. 123 of 2014 judgment dated 27.09.2019 inter alia observed that the profits, if any, ploughed back into the ve…