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TMI Blog2016 (12) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... To examine the said issue, the case is restored to AO. It is ordered accordingly. - ITA No.1642/Bang/2016 - - - Dated:- 2-12-2016 - SHRI GEORGE GEORGE K, JUDICIAL MEMBER For The Assessee : Shri. Prathik. P, CA For The Revenue : Shri. Saravanan B, Addl. CIT ORDER Per George George K, JM : This appeal instituted, at the instance of the assessee society, is directed against the order of the CIT (A)-14 [LTU], Bangalore, dated 30.06.2016. The relevant assessment year is 2005-06. 2. The assessee society has, in its grounds of appeal, raised two effective grounds, namely: (1) that the Hon ble CIT (A)[LTU] ought to have held that the assessee was entitled to the benefit of exemption u/s 10(23C) of the Act under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee society at ₹ 35,19,200/- with the following reasoning: The assessee is running 3 educational institutions in the name of St. Miras High School at 3 places in Bangalore. The gross receipts exceed (sic) exceeded ₹ 1 crore. The assessee is neither registered u/s 12A (a) nor notified u/s 10(23C) of the Act. Therefore, the entire income earned is taxable. Section 11 has no application. 4. Aggrieved, the assessee society took up the issue with the CIT (A)-LTU for consideration. According to the CIT (A), three hearing notices posting the case for hearing on 27.8.2015, 27.4.2016 and finally on 21.6.2016 were issued to the assessee society to comply with the same. As there was no compliance to any of the hearings not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n s Education Society [358 ITR 373 (Kar)], the assessee society was entitled to the benefit of exemption u/s 10(23C)(iiiad) as the gross receipts of each educational institution run by it were well below the limit of ₹ 1 crore prescribed by s. 10(23C)(iiiad) read with rule 2BC of the Income-t ax Rules and, therefore, the AO had erred in law in denying the benefit of the exemption under the said provision. The entire income of the assessee society for the AY 2005-06, was exempt under the provisions of s. 10(23C)(iiiad) of the Act. In conclusion, it was pleaded that the stand of the authorities below deserve to be reversed. 5.1. On the other hand, the learned DR present supported the stand taken by the AO as well as the CIT (A) an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dependent entities. Any person in section 10(23C) refers to the assessee and on behalf of refers to such institution. It may be an university, it may be an educational institution, it may be a hospital or other institutions of similar nature. As all such institutions are independent entities and they generate income when that income is received by the assessee, it becomes the income in the hands of the assessee and it is such income which is sought to be excluded while computing the total income of the assessee under section 10. The test prescribed under the provision is not the income of the educational education. It is the aggregate annual receipts of such educational institution that is prescribed at ₹ 1 crore. Therefore, the e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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