OXFORD UNIVERSITY PRESS versus COMMISSIONER OF INCOME TAX

OXFORD UNIVERSITY PRESS versus COMMISSIONER OF INCOME TAX

Majority held that, while Section 10(22) could apply to foreign universities engaged in education in India, Oxford University Press in India was purely a commercial enterprise engaged in publishing and selling books with no educational activity in India. It was, therefore, not entitled to exemption under Section 10(22) as it existed for profit and not solely for educational purposes.

Parties
Appellant/assessee: Oxford University Press; Respondent/revenue: Commissioner of Income Tax
Jurisdiction
India
Judgment Date
24 January 2001
Procedural Posture
Civil Appeal / Supreme Court of India Judgment on Appeal From Bombay High Court Decision in IT Reference No. 82 of 1984
Outcome
Appeals dismissed by majority.
Legal Topics
Income Tax Exemption, Section 10(22) Income Tax Act, Eligibility of Foreign Universities for Tax Exemption, Meaning of 'university', Literal Vs Purposive Statutory Interpretation
Taxation Interpretation of Statutes Income Tax Exemption Section 10(22) Income Tax Act Eligibility of Foreign Universities for Tax Exemption Meaning of 'university' Literal Vs Purposive Statutory Interpretation

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Parties

Oxford University Press

Appellant/assessee

Commissioner of Income Tax

Respondent/revenue

Procedural Posture

Civil Appeal / Supreme Court of India Judgment on Appeal From Bombay High Court Decision in IT Reference No. 82 of 1984

Legal Issues

  1. 1 Whether a foreign university or its branch, engaged in publishing and selling books in India, is entitled to exemption under Section 10(22) of the Income Tax Act, 1961?
  2. 2 Is incorporation or imparting of education in India necessary for exemption to be claimed under Section 10(22) by a university?
  3. 3 Should 'University' in Section 10(22) be construed narrowly as per the UGC Act definition or in the broader sense?

Ratio Decidendi

Majority held that, while Section 10(22) could apply to foreign universities engaged in education in India, Oxford University Press in India was purely a commercial enterprise engaged in publishing and selling books with no educational activity in India. It was, therefore, not entitled to exemption under Section 10(22) as it existed for profit and not solely for educational purposes.

Court Disposition

Appeals dismissed by majority.

Orders

  • Appeals dismissed. No order as to costs.