KARNATAKA HIGH COURT: ALLOWED TAX EXEMPTION ON VOLUNTARY DONATION RECEIVED BY EDUCATIONAL INSTITUTION

The Karnataka High Court in the case Pr Commissioner Of Income-1 Tax (Exemptions) Versus M/S Rashtreeya Sikshana Samithi Trust observed and has allowed the tax exemption on voluntary donations which are received by the educational institutions.

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The bench comprising of Justice P.S. Dinesh Kumar and Justice T.G. Shivashankare Gowda in the case observed and has stated that the educational institution is carrying out education that is charitable and is within the meaning of Section 2(15), the educational institution has applied or accumulated sums as required by Section 11(1)(a), the explanation thereto, and Section 11(2), it is duly registered as stated under Section 12A, and it has not violated Section 13. Therefore, there being no private gain, and all the funds are plowed back only into education and that the accumulations and applications are as per the provisions of Section 11.

The court in the case stated that the exemption stated under section 11 and section 12 has to be granted to the assessee.