Court No. - 3 Case :- INCOME TAX APPEAL No. - 315 of 2011 Appellant :- Commissioner Of Income Tax And Anr. Respondent :- Sunbeam English School Society Counsel for Appellant :- Praveen Kumar,Gaurav Mahajan Counsel for Respondent :- S.K. Garg,Ashish Bansal Hon'ble Pankaj Mithal,J. Hon'ble Umesh Chandra Tripathi,J. Heard Sri Gaurav Mahajan, learned counsel for appellants and Sri Ashish Bansal, learned counsel for respondent. order of Income Tax Appellate Tribunal dated 16.05.2011 in respect of assessment year 2002-03 in under challenge in this appeal. appeal raises following three substantial questions of law :- "(1). Whether on facts and in circumstances of case, Tribunal is justified in law in coming to conclusion that assessee is entitled to benefit of exemption under Section 11 of Act as assessee is registered under Section 12-A by completely ignoring fact that order of Tribunal granting registration under Section 12-A has not been accepted by Department and same is subject matter of appeal under Section 260-A of Act before Hon'ble High Court ? (2). Whether on facts and in circumstances of case, Tribunal is justified in law in coming to conclusion that property and vehicle purchased by assessee society in name of directions were being utilized solely for purposes of running schools of assessee society and not for personal benefits of Directors by relying upon its earlier orders in case of assessee itself by completely ignoring that fact that those earlier order has not been accepted by Department and appeals under Section 260-A of Act have been preferred before Hon'ble High Court and matter is sub-judice ? (3). Whether on facts and in circumstances of case, Tribunal is justified in law in coming to conclusion that issue of alleged high fees charged by assessee is also of no consequence so long surplus generated by such fees has been utilized for purposes of eduction only and for no other purposes by completely ignoring fact that assessee had failed to substantiate such claim before authorities below ?" Tribunal has held that assessee is entitle to exemption under Section 11 of Income Tax Act as assessee is registered under Section 12-A of Act. This Court in case of assessee itself Commissioner of Income Tax Vs. Sunbeam English School (2014) 361 ITR 325 (Alld) has returned finding that assessee is registered under Section 12-A of Act during assessment year 2002-03. In view of above as assessee was duly registered under Section 12-A of Act, only consequence is that he is entitle under Section 11 of Act. Accordingly, question no.1, as formulated above, is answered in favour of assessee and against Department. question no.2 has also been dealt with by this Court in case of assessee itself as referred above and it has been answered in favour of assessee and against Department holding that Tribunal is justified in confirming order of CIT (Appeals) and allowing exemption under Section 10(23-C)(vi) of Act. Accordingly, question no.2 stands answered in favour of assessee. third substantial question of law is regarding realization of fees at higher rate and Tribunal has held that it has no consequence inasmuch as excess amount, so realized, was utilized by assessee for purposes of education only and no other purpose. Therefore, benefit of exemption under Section 10 (22) of Act cannot be denied to assessee. aforesaid question is covered by decision of Supreme Court in case of Queen's Educational Society Vs. Commissioner of Income Tax (2015) 372 ITR 699 (SC) wherein it has been held that even where institution makes profits, it does not necessarily mean that it exists for profit. Thus, educational institution does not seize to exist for educational purposes merely because it makes profits so as to deny benefit under Act. In view of above, question no.3 also stands answered in favour of assessee. appeal stands disposed of. Order Date :- 22.8.2017 Nadim Commissioner of Income-tax And Anr. v. Sunbeam English School Society