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TMI Blog2017 (4) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... essment to deny this benefit to the assessee. A perusal of the assessment order would indicate that he has not made reference to any circumstances or documents. Similarly, the department has merely filed appeal for the sake of filing, otherwise it has also not placed any document on record which can suggest that the assessee does not fulfill criterion contemplated in section 10(23C)(iiiab). - Decided in favour of assessee. - ITA No.2902/Ahd/2013 - - - Dated:- 6-4-2017 - SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER For The Assessee : Shri M.G. Patel, AR For The Revenue : Shri R.I. Patel, CIT-DR ORDER PER RAJPAL YADAV, JUDICIAL MEMBER: Revenue is in appeal before the Tribunal against the order of ld.CIT(A), Gandhinagar dated 27.9.2013 passed for the Asstt.Year 2010-11. 2. Revenue has taken four grounds of appeal, but its grievance revolves around single issue viz. the ld.CIT(A) has erred in law and on facts in deleting the addition of ₹ 6,13,78,824/- which was added by the AO by denying benefit under section 10(23)(iiib) of the Income Tax Act, 1961. 3. Brief facts of the case are that the assessee has filed its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nclosed herewith. (Please see Pages No.22to44). 2. It is submitted that as per the object of GSTDREIS, it is running schools from primary upto higher secondary level for education of children of Schedule Tribes and others residing in tribal areas of Gujarat State. The Appellant, GSTDREIS is accordingly running, maintaining and controlling 18 Ekiavya Model Residential Schools (EMRS) for 6th to 12th Standard, 12 Model Schools (Residential) for 6th to 12th Standard and 36 Girls Residential Schools (EGRS) as well as 12 other schools of Ekiavya Model Schools (MS) in tribal districts of Gujarat State. 3. The Appellant, GSTDREIS submits that all these Educational Institutions (Schools) are run in accordance with the tribal development schemes of Govt. of India and Govt. of Gujarat. As such, Govt. of India and Govt. of Gujarat provides grants to the Appellant, GSTDREIS for maintenance of all these schools. Further, it is to be noted that all these schools provide free education. Moreover, students are also provided residential facility, meals, study materials like books, notes etc. and uniform free of cost. 4. The Appellant, therefore, strongly claims that, under the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and the Central Government for the purpose of carrying out its objects of educating children of Schedule Tribes and others residing in tribal areas of Gujarat State. It can be seen that such grants from the State and Central Governments constitutes very substantial part of the funds of the Appellant. Therefore, it is absolutely clear that the Appellant is wholly or substantially financed by the Government. (Please see Pages No.45 to 73). 8. The Appellant, therefore, submits that in view of above facts, it is clear that the Appellant is an educational institution existing solely for education purposes and it is also wholly or substantially financed by the Government. Further, the Appellant being institution functioning under the control and supervision of the Government of Gujarat, it is but obvious that it is not at all functioning for the purposes of profit. Therefore, it is submitted that the Appellant is directly covered under the provisions of Section 10(23C)(iiiab) of the Income Tax Act,1961 and income of the Appellant is wholly exempt u/s 10(23C)(iiiab) of the Income Tax Act,1961. 9. The Appellant GSTDREIS submits that though its entire income is eligible to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ances of the case as well as above submissions, assessment made by the Ld. Assessing Officer may kindly be quashed and income of the Appellant be held as fully exempt u/s 10(23C)(iiiab) of the I.T. Act, 1961. 7.2 I have gone through the assessment order, the facts of the case and the contentions of the appellant. From the details filed before me I find that the contention of the appellant is that it is eligible for exemption u/s. 20(23)(iib) on the income earned which has been denied by the AO. I find that my predecessors on identical facts have discussed the issue at length in the earlier years' orders dated 18/5/2009 for AY 2006-07 and again in order dated 30/7/2012 for AY 2008-09, wherein it was held that the appellant's case is covered by the conditions laid down in section 10(23)(iiib) of the Act and therefore, the income if any, is consequentially exempt. The issue has also been settled by the Hon'ble ITAT, W Bench, Ahmedabad in favour of the appellant by dismissing the appeal of the Revenue vide its order dated 25/11/2011 in ITA No.2313/Ahd/2009 wherein it was observed and held that the appellant is running educational institutions like schools, etc. impa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jarat Secondary and Higher Secondary Education Board, Examination Wing, Vadodara for 02 schools 16. Delegation of Powers to officials and Principals of EMRS 17. Communication from GSTDREIS to principals of EMRS 18. Photographs of study tours and sports meet of EMRS 19. Minutes of meeting of 04.10.2005 at GSTDREIS with Principals of EMRS for examination results, etc. 20. Submission of Member Secretary GSTDREIS to ACIT, Gandhinagar Circle, Gandhinagar claiming exemption u/s. 10(23C)(iiiab) of the Income-tax Act, 1961 21. Acknowledgement no. 2307000527 dated 22.12.2006 and annual income-tax return of GSTDREIS for AY 2006-2007 6.1 The ld. A.R. further submitted that all the documents were furnished before the ld. CIT(A) who has passed reasonable order, after obtaining a remand report from the A.O, therefore, it was prayed that the order of the ld. CIT(A) may be upheld. 7. We have heard rival submissions and carefully perused the materials produced before us. After perusing the paper book, it is evident that the assessee is running educational institutions such as schools, etc. imparting formal education, as prescribed under the Act. The l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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