COSMOPOLITAN EDUCATION SOCIETY Vs. CIT JAIPUR

JUDGEMENT

(1.) THIS appeal u/S. 260A of the Income Tax Act, 1961 (hereinafter referred to as `the Act') has been filed by the assessee against the appellate order of the Income Tax Appellate Tribunal, Jaipur Bench, Jaipur allowing the Revenue's appeal and remanding the case back to the first Appellate Authority i.e. Commissioner of Income Tax (Appeals) to decide the issue again as to whether there was any mis-utilisation of the funds by the trustees or owner of the assessee Society and consequently whether the assessee was entitled to exemption from income tax u/S. 10(22) of the Act.

(2.) THIS appeal is for the assessment year 1996-97 and learned counsel urged that for the preceding abressment year 1995-96 the Income Tax Appellate Tribunal itself has decided in favour of the assessee that the assessee was entitled to exemption u/S. 10(22) of the Act and even the appeal against the said order of the Income Tax Appellate Tribunal was dismissed by this Court and the said judgment has been reported as Deputy Commissioner of Income Tax vs. Cosmopolitan Education Society (2000) 244 ITR 494 Raj.) and SLP dismissed by the Hon'ble Supreme Court as reported in (2000) 241 ITR 132 (St.).

(3.) THE question whether the educational institution existed solely for educational purposes and not for purposes of profit, is a question of fact and every year the Assessing Authority is entitled to examine the facts of the case as to whether during the assessment year in question the educational institution existed solely for educational purposes and not for the purposes of profit. It would naturally depend upon the fact as to whether the expenditure incurred by the educational institution is for educational purposes or otherwise or whether the profit earned by the educational institution has been utilised for the purpose of education only or not. Obviously, since the exemption from income tax was granted only if such university or educational institution existed solely for education purposes and not otherwise, this enquiry independently is necessary for every assessment year, before allowing such exemption.