2011 (11) TMI 771 - AT - Income Tax

Summary

Issues Involved: Appeal against order of CIT(A) regarding exemption u/s 10(23C)(iiiab) of the IT Act for assessment year 2006-2007.

Issue 1: Exemption u/s 10(23C)(iiiab) of the IT Act
The Revenue contended that the assessee, a government-controlled society, did not qualify as an educational institution under the Act as it did not run organized and systematic training courses affiliated with recognized authorities. Citing a decision of the Gujarat High Court, the AO denied the exemption. The AO computed the income of the assessee and issued a demand notice under section 143(3) of the Act. Penalty proceedings under section 271(1)(c) were initiated. The CIT(A) reviewed the matter, considering evidence provided by the assessee, including details of schools, strength, expenditure, and affiliations with the Gujarat Secondary Education Board. The CIT(A) concluded that the assessee met the conditions of section 10(23C)(iiiab) and was entitled to exemption. The Tribunal upheld the CIT(A)'s decision, noting that the assessee was running educational institutions as per the Act and had provided substantial evidence to support its claim. The Revenue failed to provide convincing arguments or evidence against the documents submitted by the assessee.

Decision:
The Tribunal dismissed the appeal filed by the Revenue, confirming the order of the CIT(A) granting exemption u/s 10(23C)(iiiab) to the assessee for the assessment year 2006-2007.