IMPORTANT POINT
An educational society or a Trust or other similar body running an educational institution solely for educational purposes and not for the purpose of profit could be regarded as other educational institution coming within Section 10(22) of the Income Tax Act, 1961.

JUDGMENT

Paripoornan, J.-Leave granted in Special Leave Petition Nos. 2357-59 of 1988, 3122 of 1987 and 6281 of 1986.

2. In this batch of 18 cases, a common question of law-the scope of Section 10(2) of the Income-tax Act, 1961-arises for consideration. The main case is the decision rendered by the Madras High Court in Tax Case No. 114 of 1975 (Additional Commissioner of Income-tax, Madras v. Aditanar Educational Institution, Madras). The said decision is reported in 118 ITR 235. The assessee as well as the Revenue have filed appeals from the said decision, which covered a period of three years, 1965-66, 1966-67 and 1967-68. The appeals filed by the assessee are Civil Appeal Nos. 2578-80 of 1979 and the appeals filed by the Revenue are Civil Appeal Nos. 356, 356A and 356B of 1980. Civil Appeal Nos. 41 and 42 of 1988 as also the appeals relating to Special Leave Petition Nos. 2357-59 of 1988 and 3122 of 1987 relate to the same assessee. The assessees in the other cases are different. In Civil Appeal Nos. 3881-82 of 1984 and 379-80 of 1985, the assessee is Sri Paramkalyani Education Society, Madras. In Civil Appeal Nos. 8789 of 1995, the assessee is one Sattur Hindu Nadar s Edward School Committee. In the appeal relating to Special Leave Petition No. 6281 of 1986, the assessee is one Rajagopal Educational Trust. As stated, the common question involved in this batch of 18 cases is the interpretation to be placed on Section 10(22) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). The decision of the Madras High Court rendered in T.C. No. 114 of 1975 (Additional Commissioner of Income-tax, Madras v. Aditanar Educational Institution, Madras) (118 ITR 235) was followed in all the other cases. The following table would show the parties and the relevant appeals and the assessment years:

Case No. Parties          Year

concerned

1 2 3

CA 2578-80/79 Aditanar Educational  Institution 1965-66

 vs. 1966-67

 Additional Commissioner 1967-68

 of Income Tax

CA 356,356A Additional Commissioner

& 356B/80 of Income Tax, Madras 1965-66

vs. 1966-67

Aditanar Educational 1967-68

Institution, Madras

CA 3881-82/84 CIT, Madras

vs.

Sri Paramakalyani Edu- 1971-72

cation Society Madras 1972-73

CA 379-80/85 CIT, Madras

vs.

Sri Paramakalyani Educa- 1973-74

tion Society, Madras 1974-75

CA 41-42/88 CIT, Madras

vs.

Aditanar Educational 1963-64

Institution, Madras 1964-65

CA 8789/95 CIT, Madurai

vs.

Sattur Hindu Nadar s 1980-81

Edward School Committee, Sattur

SLP 2357-59/88 CIT, Madras

 vs. 1977-78

Aditanar Educational 1978-79

Institution, Madras 1979-80

SLP 3122/87 CIT, Madras

vs.

Aditanar Educational 1980-81

Institution, Madras

SLP 6281/86 CIT, Madras

vs. 1979-80

Rajagopal Educational Trust

It should be mentioned that in the appeal relating to Special Leave Petition No. 6281 of 1986 (CIT v. Rajagopal Educational Trust), the Madras High Court dismissed the application filed by the Revenue under Section 256(2) of the Act. By this judgment, we withdraw the said application to the file of this Court and finally dispose of the same on merits along with the other appeals.

3. We heard counsel. It is agreed before us that the decision rendered in the main appeals will govern the entire batch of cases.

4. The question of law that arises for consideration in this batch of cases is to the following effect :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the inco