VISVESVARAYA TECH.UNIVERSITY vs ASSISTANT COMMISSIONER OF INCOME TAX

The Supreme Court addressed the entitlement of Visvesvaraya Technological University to tax exemption under Section 10(23C)(iiiab) of the Income Tax Act, 1961. The Court held that for exemption to be granted, the institution must exist solely for educational purposes without profit motives and must be substantially financed by the government. The Court reaffirmed principles established in Queen's Educational Society vs. Commissioner of Income Tax, emphasizing that making a surplus does not negate the educational purpose, provided the predominant object remains education.