Section 10(23C)(vi) of the Income-tax Act, 1961 - Exemptions - University or other educational society solely for educational purposes – Notified university or educational institution

In exercise of the powers conferred by sub-clause (vi) of clause (23C) of section 10 of the Income-tax Act, 1961 (43 of 1961) read with rule 2CA of the Income-tax Rule, 1962, the SRM Institute of Science & Technology, No. 3, Veerasamy Street, West Mambalam, Chennai – 600033 [PAN: AA-DTS 3688KKJ is hereby approved for the purpose of the said sub-clause from the assessment year 2009-10, subject to the following conditions:

2. (i) The trust shall apply its income or accumulate the same for application wholly and exclusively towards the objects for which it is established as per deed of rectification dated 8-9-2009 and, in case more than fifteen per cent of its income is accumulated, the period of accumulation of the same shall in no case exceed five year, as required in clause (a) of the third proviso to section 10(23C) of the Act.

(ii) The trust shall not invest or deposit its funds (other than voluntary contributions received and maintained in the form of jewellery or furniture) for any period otherwise than in any one or more of the forms or modes specified in sub-section (5) of section 11 of the Act, as required in clause (b) of the third proviso to section 10(23C) of the Act.

(iii) The trust shall get its accounts audited in accordance with the tenth proviso to section 10(23C) of the Act and regularly file its return along with the audit report in accordance with section 139(4C) of the Act.

(iv) In the event of dissolution or winding up of the trust, its surplus and assets shall be given to an organization which exists solely for educational purposes and not for purposes of profit and no part of the same shall go directly or indirectly to any of the beneficiaries of the trust or any body specified in section 13(3) of the Act.

(v) This approval shall not apply in relation to any income from any activity in the nature of trade, commerce or business or rendering of any service in relation to trade, commerce or business irrespective of the nature of use or application or retention of income from such activity.

(vi) The approval shall not apply in relation to anonymous donations in terms of the fifteenth proviso to section 10(23C) read with section 115BBC of the Act.

3. The above approval is liable to be withdrawn in accordance with the thirteenth proviso to section 10(23C) of the Act, if it is subsequently found that the income of the assessee trust is applied in contravention of para 2(i) supra, or its funds are invested or deposited in contravention of para 2(ii) supra, or its activities are not genuine, or if they are not being carried out in accordance with all or any of the conditions subject to which the approval is granted.