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2017 (11) TMI 1026 - ALLAHABAD HIGH COURTRevision u/s 263 - claim of the respondent assessee under Section 11/12 wrongly allowed to the assessee despite the fact that the assessee society is not registered under Section 12A/12AA - ITAT has concluded that Commissioner has taken a particular view that the gross received is more than ₹ 1 crore therefore, the assessee society is not entitled to get the benefit of the provisions of Section 10(23C)(iiiad) - Held that:- In the present case admittedly the assessee society/ college has received an account of tuition fee and other fee less than ₹ 1 crore (which is prescribed limit) i.e. ₹ 95,71,259/- therefore, the Tribunal has rightly held that the proceedings under Section 263(1) initiated by the Commissioner are illegal and the Commissioner is not empowered to invoke the power of Section 263 of the Act as the basic consideration to hold that the order of Assessing Officer is erroneous, is missing upon the facts and circumstances of the present case. We are in full agreement with the finding of the ITAT as we find that the assessee society is running a school and has admittedly received the tuition fee being the annual receipts below the prescribed limit of ₹ 1 crore and according to us the exemption limit clearly provides the cut of figure of ₹ 1 crore being the annual receipt of the educational Institution or the University, as the case may be, and not that of the total income of the society running the educational Institution or University. In the present case, the income of ₹ 6,67,000/- towards the buildings/capital assets and ₹ 4,01,900/- received towards donation cannot be part of the annual receipts of the University/College/School. Therefore, in our considered opinion the assessee is entitled for exemption under Section 10(23C)(iiiad) as annual income of the assessee society did not exceed ₹ 1 crore. - Decided in favour of assessee.
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