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TMI Blog2015 (6) TMI 856X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld CIT(Appeals) was not justified in confirming the assessment of the above said amount. Hence, we are unable to sustain the order of Ld CIT(Appeals) on this issue. Accordingly, we set aside the order of Ld CIT(Appeals) and direct the Assessing Officer to delete the assessment of ₹ 47,71,058/- referred above. - Decided in favour of assessee. - ITA No.289/Mds/2014 - - - Dated:- 6-2-2015 - Shri B.R. Baskaran, and Shri Vikas Awasthy, JJ. For the Appellant : Shri R. Srinivasan, Advocate For the Respondent : Shri P. Radhakrishnan, JCIT ORDER Per B.R. Baskaran, Accountant Member: The appeal filed by the assessee is directed against the order dated 18.11.2013, passed by Ld. Commissioner of Income Tax (Appeals), Tiruchirapalli and it relates to assessment year 2010-11. The assessee is aggrieved by the decision of the Ld. CIT(Appeals) in confirming the addition of ₹ 47.71 lakhs made by the Assessing Officer. 2. The facts relating to the issue are stated in brief. The assessee is a society and it is running an educational institution under the name and style of Vairams Kindergarten Society in Pudukottai. The school is conducting classes for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed the same in the hands of the assessee. 4. The Ld. CIT(Appeals) also confirmed the same with the following observation:- 9. The assessee is a charitable institution registered under Society s Registration Act of Tamil Nadu running an education institution by name Vairams Kindergarten Society. The appellant filed return of income on 18/10/2010 admitting NIL income by claiming exemption u/s 10(23C)(iiiad) of the I.T. Act. Being an education institution with receipts less than the prescribed limit of 1 crore. During the course of assessment proceedings the Appellant Society gave an advance to another educational institution, i.e. Vairams Matriculation Higher Secondary School. The Appellant is conducting kindergarten classes in the building owned by Vairam Matriculation Higher Secondary School without paying any rent. The Appellant Society advanced money to Vairams Matriculation Higher Secondary School for constructing additional building for its purpose of carrying out educational activities. The total advance given by the Appellant Society is at ₹ 47,71,056/- as of 31/03/2010, these advances are not interest bearing. However, the A.O. assessed the entire outsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has since been deleted and in its place the present 10(23C)(iiiad) have been inserted. Accordingly he submitted that the decision rendered in the case of Seethakathi Trust shall be applicable to assessee also. The Ld A.R invited our attention to the decision of Hon'ble Delhi High Court rendered in the case of DIT (Exemption) v. ACME Educational Society (2010) 326 ITR 146, wherein it was held that the amount advanced by one educational society to another educational society cannot be considered as violation of provisions of Section 13(1)(d) read with Section 11(5) of the Act, since the interest-free loan given by the assessee-society was neither an investment nor a deposit. The Ld A.R submitted that the assessee herein has also given only advance to another educational society and hence the same cannot be considered as Investment or Deposit . 6. The Ld. A.R. submitted that the objectives of the assesseesociety, inter alia, includes to aid and assist in the establishment, etc. of educational institutions . The assessee has given impugned advance to another educational society for the purpose of construction of the building and the same would amount to aiding and assisting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, has advanced money to another charitable society registered u/s 10(23C)(vi) of the Act and further the recipient society is also an educational institution. He submitted that the decision rendered in the case of St. Francis Convent School (supra) is also not applicable, since the funds were diverted by the assessee therein to the Diocese of Jalandhar. 10. We have heard rival contentions and perused the record. The undisputed facts are that the assessee is a society and it is running a school having LKG and UKG classes and it is not registered u/s 12A of the Act. Accordingly, the assessee cannot claim exemption u/s 11 of the Act. According to Ld A.R, the gross receipts of the assessee was less than one crore and hence it claimed exemption u/s 10(23C)(iiiad) of the Act. The Ld A.R furnished a copy of return of income filed by the assessee before us. A perusal of the same would show that the assessee has shown an income of `16,00,500/- under the head Income from Business or Profession and claimed the same as exempt u/s 10(23C)(iiiad) of the Act. Accordingly it has disclosed NIL income. We notice from the assessment order that the assessing officer has accepted the claim for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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