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TMI Blog2013 (7) TMI 728X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that the assessee society exists for educational activities - Revenue has failed to point out any contrary material to the finding of the CIT(A) - the other conditions for exemption u/s 10(23C) have been complied with by the assessee trust - there was not find any informality in the order of CIT(A). Validity of donations- Whether the CIT (A) erred in treating all donations as explained and for corpus even identity of donors were not established - Court set aside the orders of Revenue authorities and contention of the assessee is allowed that if any addition is sustained, the assessee is entitled to benefit of Section 11/10(23C) - Court relied upon the judgement of Director of Income Tax vs. Raunaq Education Foundation, (2007 (4) TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iety is registered under section 12A of the Income Tax Act, 1961 ('the Act' hereinafter) claiming under section 10(23C) of the Act being a charitable educational institution. However, the registration certificate issued under section 12AA dated 16.06.2010 was allowed w.e.f. 01.04.2009. The A.O. noticed that the assessee was not registered under section 12A for the period relevant to A.Y. 2009- 10. The assessee claimed exemption under section 10(23C) of the Act being charitable educational institution. The A.O. was of the view that exemption under section 10(23C) is not available to the assessee trust as the assessee trust having various clauses of objects in addition to education. Thus, the assessee society does not fulfill the mandate of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have examined the donation receipt issued by the Society and find that these clearly mention that the donation is given by the donor for the construction of the building. However, provisions of section 11 and 12 are applicable only if the registration is granted under section 12AA of the Act. But I find that exemption u/s 10(23C)(iiiad) is required to be considered, independent of any such benefit u/s 11 12, whether available to assessee or not. On the issue of eligibility for exemption u/s 10(23C)(iiiad), I find that the assessee society undisputedly exists solely for educational purposes. The two clauses (s) and (x), referred to, by the A.O., are just incidental to the main clauses which are of purely educational nature. Moreover, I h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of section 10(23C)(iiiad) of the Act. The CIT(A) before giving his conclusion considered the following decisions cited by the assessee :- "1) CIT vs. Geetha Bhavan Trust, 231 ITR 296. 2) Dy. Director of Income Tax vs. Shanti Devi Progressive Education Society, 340 ITR 320. 3) R.R.M. Educational Society vs. Chief Commissioner of Income Tax, 208 Taxmann 81. 4) O.P. Jindal Global University vs. Chief Commissioner of Income Tax (Exemption), 208 Taxmann 288. 5) Sikkim Manipal University vs. ACIT, 126 Tax Referencer 415 6) Sardar Vallabh Bhai Education Society, 138 ITD 245" 6. After considering all the decisions and submission of the assessee, the CIT(A) held that the assessee is eligible for exemption under section 10(23C)(ii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n when a number of other objects are included in it object clause and section 12A was not available for A.Y. 2009-10. The CIT(A) after considering the material found that the assessee society exists solely for education purposes. He further noticed that other clauses are just incidental to the main clause which is education in nature. The CIT(A) has also considered a resolution dated 02.01.2012 passed by the assessee trust wherein the alleged clause (s) and (x) were dropped from the Memorandum of society. The society has also given in writing that society has not used any part of the building and/or funds of the society on the activities as enumerated in clause (s) and (x) of the Memorandums of Association. The CIT(A) categorically held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere after considering the judgment of the Apex Court in the case of Orissa State Warehousing Corporation vs. CIT, 237 ITR 589 (SC), it has been held as under :- "The words "derived from" (or some other similar words) do not occur in section 10(22) of the Income-tax Act, 1961, and, therefore, the word "income" as occurring in section 10(22) cannot be given a restrictive meaning and must be given its natural meaning or the meaning ascribed to it in section 2(24). Hence, an assessee who is entitled to exemption under section 10(22) can claim the benefit thereof for the purpose of income deemed to be chargeable to tax under section 68." 20. In the light of judgment of Hon'ble Delhi High Court, the order of I.T.A.T. Hyderabad Bench cited abo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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