M/S QUEEN'S EDUCATIONAL SOCIETY vs COMMR.OF INCOME TAX

The Supreme Court addressed the interpretation of Section 10(23C)(iiiad) of the Income Tax Act, 1961, which provides tax exemption for educational institutions existing solely for educational purposes and not for profit. The Court held that to qualify for exemption, the institution must meet three criteria: it must exist solely for educational purposes, not for profit, and its annual receipts must not exceed Rs. 1 crore as prescribed. The Court set aside the High Court's judgment that denied the exemption to the appellant, thereby affirming the ITAT's decision in favor of the appellant.