COMMISSIONER OF INCOME TAX Vs. HIGHLANDERS EDUCATIONAL ACADEMY

JUDGEMENT

(1.) CHAPTER III of the Income Tax Act, 1961 (hereinafter referred to as "the Act") specifies those incomes, which do not form part of the total income. Section 10 of the Act is included in Chapter III thereof. Section 10 (23C)(iiiad) of the Act provides as follows : -

(2.) THE amount of annual receipt has been prescribed at Rs.1 crore. During the relevant year, the assessee received less than Rs.1 crore. To that, there is no dispute. The assessee held out that it being an educational institution and is existing solely for educational purposes and not for the purposes of profit, the income it has made out of the receipts will not form part of its total income. The Assessing Officer, having noted the expression "any university or other educational institution", applied the principle of ejusdem2 generis in order to give meaning to the expression "other educational institution" without any just reason and without appreciating the true principle of ejusdem generis. However, the Assessing Officer did not conclude the matter thus and expressed only a doubt as to whether the assessee constituted initially to run a school with nursery and kindergarten class will qualify as such educational institution. The Assessing Officer, thereafter, culled out 12 aims and objects from the memorandum of association of the assessee society. Those are as follows : -

(3.) THE appeal fails and the same is dismissed.