JUDGMENT - DAGA V.C., J.:---Heard finally by consent of parties.

In this batch of six appeals filed at the instance of revenue: following common reframed substantial question of law with respect to the scope of section 10(22) of the Income Tax Act, 1961 (for short, the "Act"), arises for consideration:---

"Whether, on the facts and circumstances of the case, the Tribunal was justified in holding that income of M/s. Vidya Vikas Vihar, Nagpur is exempt under section 10(22) of the Income Tax Act, 1961 for the relevant years involved in the appeals?"

The Facts

2. The Vidya Vikas Vihar, Nagpur is a registered society registered under the Maharashtra Co-operative Societies Act and it is engaged in imparting technical education to the students. The said Institute is being run on no grant-in-aid basis. The said institute is imparting training in the discipline of Engineering Technology. The dominant object of the appellant Educational Institution is to open and run college of polytechnic to impart technical education. One of the objects shown in the Constitution of the society is to construct houses for weaker sections of the society; if anything remains surplus after incurring expenses on the activities of imparting education.

3. The Constitution of the society, further spells out, in case of winding up, the assets of the society the surplus funds and/or property are to be donated to another Educational Institution. In order to fulfil the object of the educational activities, certain buildings were required to be constructed. To construct such buildings, the respondent-society has collected donations from the students; the accounts of which have also been maintained and the same have been reflected in the Books of Accounts of the Society.

The Statutory Provision

4. With the aforesaid factual position available on record, it is necessary to have a look to the text of the statutory provision with which we are concerned. Section 10(22) of the Income Tax Act, 1961 stands omitted by the Finance Act (No. 2 of 1998) with effect from 1-4-1999. The said section before omission read as under :---

"any income of a university or other educational institution, existing solely for educational purposes and not for purposes of profit was exempted."

5. On the aforesaid facts and on the backdrop of the aforesaid statutory provision, the Tribunal was pleased to hold that the dominant object of the society is only to impart technical education to the students. The supplementary object to provide houses to weaker section has never taken place and the institution never tried to pursue it. Based on this finding, the Tribunal held that the respondent/assessee is an Educational Institution existing solely for educational purpose and not for the purposes of profit as such, the said institution was exempted under the provisions of section 10(22) of the Act in the relevant assessment years involved in the appeal. Consequently, all the appeals were allowed by the Tribunal by setting aside the order of the Commissioner of Income Tax (Appeals) whereunder the orders of the Assessing Officer in refusing to grant exemption were confirmed.

Consideration

6. We have heard the parties at length. The question of exemption from income-tax of profits to the educational institution has been perennial teaser for the assessee as well as judiciary. There are various situations in which the question arises, under Clause (22) of section 10 one of the situations in which question needs consideration is whether or not the income of the universities and other educational institutions existing solely for educational purposes and not for the purposes of profit, is exempted. The intention of legislature was to bring the educational institutions under the Act and to grant exemption under section 10(22) of the Act to such institutions which exist solely for the educational purposes and not for profit.

7. The above provision has been a subject-matter of judicial scrutiny at the hands of this Court a

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