Director Of Income Tax vs Sir Shri Ram Education Foundation
2002 Latest Caselaw 2093 Del

JUDGMENT

D.K. Jain, J.

1. This appeal under Section 260A of the IT Act, 1961 (for short the Act), by the Revenue, is directed against a composite order dt. 22nd Aug., 2001, passed by the Tribunal, Delhi Bench, Delhi, in ITA No. No. 3591 & 3592(Del)/l996 pertaining to the asst. yrs. 1992-93 and 1993-94. According to the Revenue the order involves the following substantial question of law :

"Whether, on the facts and circumstances of the case the learned Tribunal has erred in allowing benefit of Section 10(22) of the IT Act, 1961, even though it is not an educational institution but merely providing financial assistance ?"

2. As is evident from the format of the question, the only issue arising for consideration in this appeal is as to whether the assessed, who is only providing financial assistance to educational institutions is entitled to the benefit of Section 10(22) of the Act.

3. We have heard learned counsel for the parties. Since the issue raised is purely legal and is no longer res integra, it is unnecessary to state the facts. A similar issue came up for consideration of the Supreme Court in Aditanar Educational Institution v. Addl. CIT wherein their Lordships of the Supreme Court were pleased to hold as under:

"It will be rather unreal and hypertechnical to hold that the assessed-society is only a financing body and will not come within the scope of "other educational institution" as specified in Section 10(22) of the Act. The object of the society is to establish, run, manage or assist colleges or schools or other educational institutions solely for educational purposes and in that regard to raise or collect funds, donations, gifts, etc. Colleges and schools are the media through which the assessed imparts education and effectuates its objects. In substance and reality, the sole purpose for which the assessed has come into existence is to impart education at the levels of colleges and schools and so, such as educational society should be regarded as an "educational institution" coming within Section 10(22) of the Act."

4. In the present case, exemption under Section 10(22) of the Act was disallowed to the assessed only on the ground that it was merely providing financial assistance to educational institutions like Lady Sri Ram College for Women, Sriram College of Commerce, etc. but was not running these institutions by itself. In view of the aforenoted authoritative pronouncement, no question of law, much less a substantial question of law, survives for our consideration. The appeal is accordingly dismissed.