M/s. Queen’s Educational Society v Commissioner of Income Tax (2015) 8 SCC 47

The document discusses the case of Ms. Queen’s Educational Society v Commissioner of Income Tax (2015) and the question of whether an educational society can be established for profit and still be considered charitable under section 2(15) of the Act. The Supreme Court held that the nature of the activities undertaken by the society, rather than the profit made, determines its charitable status.

• The case of Ms. Queen’s Educational Society v Commissioner of Income Tax (2015) was about whether an educational society can be established for profit motive and whether it can be covered as a charitable purpose under section 2(15) of the Act.
• The Honorable Supreme Court held that in determining the character of the assessee society, it is not necessary to look at the profit made each year, but to consider the nature of the activities undertaken. If the activities have no correlation with education, exemption has to be denied.
• If a surplus remains incidentally from the activity of an educational institution, it will not cease to be existing solely for educational purposes. In other words, the existence of surplus from the activity will not mean the society is not charitable in nature, and thus exemption under section 10(23)(c) cannot be denied to the society.