9911796707
TMI Blog2013 (11) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... number of grounds of appeal. The assessee was however directed to file the concise grounds of appeal which was also not complied with and again large numbers of grounds have been raised in the amended grounds of appeal. Ld. Counsel for the assessee submitted that in all the grounds of appeal, the assessee has made a claim of deduction/exemption u/s 10(23C) (iiiab) of the I.T. Act. 4. Briefly, the facts of the case are that Assessing Officer passed order u/s 143(3) of the Act by reopening of the assessment as the assessee Board has shown a profit of Rs. 12,24,21,993/- but has not filed any return of income for the year under consideration. It was, therefore, apparent that the above income of rupees approx 12 crores has escaped assessment. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee submitted before Ld. CIT(A) that assessee Board was established for publication of books up to secondary level, publication of syllabus for various classes and conduct of examinations at various levels etc. It was argued that income of the Board belongs to the State Government and that its income was exempt u/s 10(23C)(iiiab) of the Act which has not been accepted by the Assessing Officer. It was submitted that alternatively the assessee made a claim of exception u/s 10(23C)(vi) of Income Tax Act which the Chief Commissioner has already granted. It was also pleaded that the Institution has not been established for any profit motive. 6. The Ld. CIT(A) after considering the explanation of the assessee and in the light of the material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.O. in the assessment order that "there is no doubt that assessee Board is financed and controlled by the State Govt.". In fact, in the year under appeal, the appellant Board has transferred an amount of Rs. 5 Crores to the H.P. Govt. from its own income. It is further noted that the appellant Board is not directly controlled by the State Govt., but is governed under a separate Himachal Pradesh Board of School Education Act, 1968. On the given facts of the case, it is also evident that the appellant Board does not exist solely for educational purposes. It is, in fact, earning huge profits. Once it is established that the appellant Board had generated surplus and profits, it is immaterial whether or not the profit motive existed in the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. We have heard the rival submissions and perused the material available on record. Section 10 (23C)(iiiab) of the Income Tax Act provides as under:- 10(23C) .............. (iiiab) any university or other educational institution existing solely for educational purposes and not for purposes of profit, and which is wholly or substantially financed by the Government; or (iiiac) ................... 10. The condition of the above provision would show that University and other educational institutions must exist solely for education purposes and not for the purposes of profits and which is wholly and substantially financed by the government. The Assessing Officer has given a spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see does not exist solely for educational purposes. It is in fact earning huge profits and has surplus income and profits. The finding of the fact recorded by Ld. CIT(A) clearly suggests that assessee did not have fulfill the terms and conditions of section 10(23C)(iiiab) of the I.T. Act. The appeal was adjourned many times but the assessee did not take any steps to produce any evidence before the Tribunal to contradict the findings of fact recorded by Ld. CIT(A) in the impugned order. Even during the course of arguments, Ld. Counsel for the assessee was specifically required to point out any error in the order of Ld. CIT(A) on the basis of evidence or material on record but it was stated that no evidence or material has been filed on recor ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
