9911796707
TMI Blog2011 (11) TMI 771X X X X Extracts X X X X X X X X Extracts X X X X ..... the I.T. Act, 1961. 2. The Revenue has raised three grounds in its appeal wherein the crux of the issue is that the ld. CIT(A) erred in directing the AO to allow the exemption under section 10(23C)(iiiab) of the I.T. Act. 3. The assessee is a 100% Government of Gujarat controlled society constituted under the Bombay Public Trust Act, 1950 and the Societies Registration Act, 1860 on 03.10.2000 registration no. F/676/Gandhinagar and Guj/719/Gandhinagar, in compliance with the directions of the Central Government and received grants from the Central Government under the first proviso to Article 275(1) of the Constitution of India. The assessee filed its return of income on 22.12.2006. The case was taken up for scrutiny assessment whereby the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the expression "other educational institution". Therefore, the assessee is not entitled to exemption u/s. 10(23C) (iiiab). This view is supported by Hon'ble Gujarat High Court in the case of Saurashtra Education Foundation Vs CIT in [2005] 273 ITR 139. Therefore, the assessee's contention is rejected. 8. Subject to the above discussion, income of the assessee is computed as under:- Grant received during the year as shown Rs.30,30,00,000/- Add: Income as shown in Income & Expenditure account ₹ 8,36,891/- ₹ 30,38,36,891/- Less: Income applied as shown ₹ 1,07,01,083/- Income applied on capital assets ₹ 4,72,26,815/- Exemption allowed u/s 11(1)(a) @ 15% ₹ 4,55,75,533/- ₹ 10, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, the details of pending vacancies, the details of the building under consideration etc. Although section 10(23C)(iiiab) does not qualify "other educational institutions" with the condition of being attached with any university or board, in the instant case, the schools are duly attached to the Gujrat Secondary Education Board. The section also does not distinguish between the levels of studies i.e. between primary, secondary or college education. Most of the objections raised by the Assessing Officer concerning lack of facilities like land or building or teachers would not in itself lead to the conclusion that the appellant is not running educational institutions. If the appellant is able to manage running of the schools, inspi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fect and the Assessing Officer may make specific comments on the issue for future reference." 5. During the course of hearing before the Tribunal, the ld. D.R. supported the arguments of the ld. A.O. and submitted the decision of the Hon'ble Gujarat High Court in the case of Sourashtra Education Foundation -vs- CIT cited in (2005) 273 ITR 139 (Guj.) and prayed that the order of the ld. A.O. should be restored. 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 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ld. CIT(A) had elaborately dealt with the matter after per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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