On appeals from the decision of the High Court, dismissing the assessees\u2019 writ petitions against rejection of their applications for approval under section\u00a010(23C)(vi)\u00a0of the Income-tax Act, 1961, holding that the assessee-trusts were not created \u201csolely\u201d for the purpose of education, and that to determine that issue, the court had to consider the memorandum of association or the rules or the constitution of the assessees, and that the assessees were not registered under the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987 as condition precedent for grant of approval.\u00a0 Court also held that profits of business not exempt unless business incidental to attainment of objectives and separate books of account maintained in respect of such business.\u00a0 Institution should also comply with provisions of State laws regulating activities of charitable institutions. Commissioner not bound to examine only objects of institution.\u00a0 Free to call for audited accounts or documents for recording satisfaction whether institution genuinely seeks to achieve objects.Law declared departing from previous rulings. Applications to be considered in light of\u00a0 subsequent events disclosed in fresh applications.\u00a0 Law declared by Supreme Court to operate prospectively.\u00a0 \u00a0Taxing statutes are to be construed in terms of their plain language. If the language is unambiguous and capable of one meaning, that alone should be applied and not any other, based on the surmise that Parliament or the Legislature intended it to be so. In other words, it is only in cases of ambiguity that the court can use other aids to discern the true meaning. Where the statute is clear and the words plain, the legislation has to be given effect in its own terms. It is only when the application of the literal interpretation gives rise to an absurdity, that the interpretation should be expansive. The object of a proviso is to except from the main provision something enacted in the substantive clause. It cannot by itself be read as a substantive provision. Normally a proviso is meant to be an exception to something within the main enactment or to qualify something enacted therein which but for the proviso would be within the purview of the enactment. A proviso cannot be torn apart from the main enactment nor can it be used to nullify or set at naught the real object of the main enactment.<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 10 (23C) : Educational institution-Solely for educational purposes and not for purposes of profit-Profits of business not exempt unless business incidental to attainment of objectives and separate books of account maintained in respect of such business-Institution should also comply with provisions of State laws regulating activities of charitable institutions-Commissioner not bound to examine only objects of institution-Free to call for audited accounts or documents for recording satisfaction whether institution genuinely seeks to achieve objects-Prospective declaration of law-Appeals against rejection of applications for approval-Appeals dismissed-Law declared departing from previous rulings-Applications to be considered in light of subsequent events disclosed in fresh applications-Law declared by Supreme Court to operate prospectively-Interpretation of taxing statutes-Literal interpretation-Proviso[S. 2(15) 10(23C(vi) 11(4A), Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987, S 1(3)(A), 2(4), (5), 43, 44.] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-31300","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-88Q","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=31300"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31300\/revisions"}],"predecessor-version":[{"id":33425,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31300\/revisions\/33425"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=31300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=31300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=31300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}