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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 ..... t there is a balance of Rs. 66,70,78,754/- in GSFS liquid deposit scheme In the opinion of the AO, the assessee did not give any reply, therefore, he calculated interest at the rate of 8% on this balance and made an addition of Rs. 5,33,63,900/-. He disallowed claim of the assessee out of misc. expenditure, contingent expenditure and salary exps. He made total disallowance of Rs. 80,14,924/-. He worked out addition of Rs. 6,13,78,824/-. The AO did not consider the grant of exemption under section 10(23)(iiiab). Written submissions as well as finding recorded by the ld.CIT(A) are worth to take note. It reads as under: "7. The next two grounds of appeal are inter-connected and are therefore discussed and decided together. 7.1 The appellant in its written submission dated 27 "With reference to above stated appeal filed by the Appellant, Gujarat State Tribal Development Residential Educational Institutions Society (GSTDREIS) and in addition to the Statement of Facts & Grounds of Appeal, we have to give our written submissions in this regard as under: 1. The Appellant, GSTDREIS submits that it has been constituted by the Government of Gujarat to establish, maintain, control and man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its that it is an educational institution existing solely for educational purposes and not for the purposes of profit and it is wholly or substantially financed by the Government, and hence/the entire income of the Appellant, GSTDREIS is fully exempt under the provisions of section 10(23C)(iiiab) of the I.T. Act, 1961. Copies of accounts for Non-recurring grant, Recurring grant (EMRS), Recurring grant (EGRS), Non-recurring Grant Utilized Fund along with copies of grant letters are enclosed herewith. (Please see Pages No.45 to 73). 5. The Appellant, GSTDREIS submits that its claim for exemption of entire income u/s.10(23C)(iiiab) has been confirmed by following decisions in case of the Appellant, GSTDREIS itself: (i) Order of ITAT Bench Ahmedabad in ITA No.2313/Ahd/2009 for Asst.Year 2006-07, (ii) Order of the CIT(A), Gandhinagar in Appeal No.CIT(A)/GNR/326/2010-11 for Asst. Year 2008-09 Copies of above orders are enclosed herewith for ready reference. (Please see Pages No.74 to 82). 6. As the Appellant, GSTDREIS was established w.e.f. 17/10/2000, it has filed its Return of Income, declaring Rs.NIL income after claiming benefit of deductions available u/s.11 of the I.T.Act,1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0. The Appellant submits that considering the above stated facts of the case as well as submissions in that regard, the benefit of exemption u/s 10(23C)(iiiab) was validly and rightly allowable to the appellant. However, the same has not been allowed in the assessment order without calling for any further information or explanations from the Appellant before finalizing the assessment. The Appellant has therefore, submitted additional ground of appeal in that respect to claim benefit of exemption u/s 10(23C)(iiiab) of the I.T. Act,1961 which was legally, validly and rightly allowable to the Appellant GSTDREIS and it is requested that such claim for exemption may kindly be allowed to the Appellant. In this respect, the Appellant places reliance on the following judgments : (i) Smt.RajRaniGulativ.CIT [249CTR 51 (All)] (ii) CIT Vs. Jai Paraboilic Springs Ltd.[306 ITR 42 (Del)] (iii) CIT Vs. Ramco International [ 17 DTR 214 (P & H)] (iv) Jute Corpn. of India Ltd. v. CIT [187 ITR 668 (SC)] (v) Chokshi Metal Refinary v. CIT [107 ITR 63 (Guj)] (vi) CIT v.Sayaji Mills Ltd. [ 94 ITR 26 (Guj)] (vii) Union Coal Co. Ltd. v. CIT [ 70 ITR 45 (Cal)] (viii) Chicago Pneumatic India L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to differ from the decision-taken by them after elaborate discussion and the AO is directed to allow the claim of the appellant, accordingly. Hence, the appeal of the appellant is allowed." 4. The ld.DR relied upon the order of the AO. On the other hand, the ld.counsel for the assessee brought to our notice order of the ITAT passed in the Asstt.Year 2006-07 which is available on page no.74 of the paper book, and submitted that issue in dispute is squarely covered in favour of the assessee. He took us through paragraph-6 and 7 of the Tribunal's order, which reads as under: "6. The ld. A.R. forcibly submitted that the assessee is a 100% government organization imparting education to the tribals in the region, as per the directions of the Central Government from whom the grants are received. The ld. A.R. further submitted one voluminous paper book running from 1 to 220 pages which contain the following documents: 1. Certificates of Regn. as Society arid Trust and Memorandum of Association 2. First TWO Grant Orders of Govt. of India 3. Aditanar Educational Instn. v. Addl. CIT 224 ITR 0310 [1997] SC 4. Registration Certificates of Ekiavya Model Residential Schools (EMRS) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... presentatives, we have gone through the record. Section 10 contemplates that in computing the total income of previous year of any person, any income falling within any of the following clauses shall not be included. We are concerned with income provided under clause, 10(23)(C)(iiiab) which reads .... Any income received by any person on behalf of .......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....." In the order for the Asstt.Year 2006-07, the Tribunal has observed that the assessee is a hundred percent government institution imparting education in tribal regions, as per the directions of the Central Government from whom grants are received. In order to substantiate this claim, the assessee has made reference to a large number of documents which has been referred by the Tribunal in its order dated 25.11.2011 (extracted supra). The ld.CIT(A) has examined these aspects in the light of this order and observed that the assessee is entitled to exemption provided in section 10(23C)(iiiab). The question before us is what is the material collected ..... X X X X Extracts X X X X X X X X Extracts X X X X
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