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TMI Blog2017 (3) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... is not correct. Accordingly, we set aside the order of the ld. CIT(A) and direct the AO to allow the benefit u/s 10(23C)(iiiad) of the Act as the gross annual received is less than ₹ 1 crores as the activities of the trust are for the educational purposes. - Decided in favour of assessee - I.T.A. No.1115/Mum/2013 - - - Dated:- 27-2-2017 - SHRI D.T.GARASIA, JM AND SHRI RAJESH KUMAR, AM For The Assessee : Shri Deepak Tralshawala For The Revenue : Shri Suman Kumar ORDER PER RAJESH KUMAR, Accountant Member: The assessee has filed this appeal challenging the order dated 29.12.2012 passed by the ld.CIT(A)-1, Mumbai for the assessment year 2008-09 wherein it has raised following grounds of appeal: On the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stration with the Charity Commissioner. The AO further observed that in respect of five courses which were not recognized by the Government, the assessee was charging fees on the commercial basis and earned surplus from the said courses and accordingly issued show cause notice to the assessee dated 9.12.2010 calling upon the assessee to show cause as to why the exemption u/s 10(23C) (iiiad) should not be denied, which was replied by the assessee vide letter dated 14.12.2010. The AO was not satisfied with the explanation so rendered by the assessee and came to the conclusion that the assessee charged fees on commercial basis in respect of five course and also that the assessee was running the courses in the name of CMC whose fees were prescr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... although the name does not materially alter the object or activities of the society, the appellant has not produced any documentary evidence to show that they have carried out any change of name. As regards the claim of exemption ujs.l0(2C)(iiiad), it is observed that the same is not tenable. The appellant is running the courses which are in the nature of activities undertaken by any commercial organization. he main ingredient of claim, viz. 'furtherance of education' is not fulfilled in the case of the appellant. Therefore, the explanations offered by the appellant as well as the case laws relied upon by them are clearly distinguishable. 3.11 The details furnished by the appellant clearly show that the appellant institute doe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iad) of the Act. The ld. AR submitted that the assessee in the preceding and in the succeeding years claimed the said exemption and the revenue has allowed it by taking us through the copies of income tax returns for the assessment years 1998-99 to 2013-14, wherein the exemption under section 10(23C)(iiiad) of the Act was allowed and also referred the assessment order for the assessment year 1993-93 passed under section 143(3), wherein the revenue has accepted the claim of the assessee under section 10(23C)(iiiad) of the Act. It was also argued before us that under the provisions of section 10(23C) (iiiad) of the Act if any university or other educational institution existing solely for educational purposes and not for purposes of profit th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The assessee received 85.37% of the total fees from the recognized courses whereas only 14.63% was received from unrecognized courses which are also wholly for the purpose of educational activites meaning thereby that the assessee received total annual fee from the educational activities carried on by it imparting various courses. It is the case of the revenue that the surplus from these activities were not applied for the purposes of objects of the assessee trust. We also find merit in the submissions of the ld.AR that the assessee cannot advance or expand and improve its activities if does not earn any surplus from the education activities. The perusal of the income tax returns from the assessment years 1998-99 to assessment years 2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y much falls within the ambit of education activities. If surplus made by the assessee trust was utilized and consumed for the purposes of furtherance of its object of education , it would also be considered that the trust is existing for the purpose of educational purposes only and not otherwise. We are not in agreement with conclusion drawn by the ld CIT(A) which is not correct. Accordingly, we set aside the order of the ld. CIT(A) and direct the AO to allow the benefit u/s 10(23C)(iiiad) of the Act as the gross annual received is less than ₹ 1 crores as the activities of the trust are for the educational purposes. 7. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on 27.2.2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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