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TMI Blog2019 (1) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... e that the assessee is a school which is affiliated to the ‘Council for the India School Certificate of Examination’ (ISCE), copy of which is placed on the record. It is also not the case of the Department that the assessee school was existing for the purpose of the profit. See CIT and Another Vs Children Education Society [2013 (7) TMI 519 - KARNATAKA HIGH COURT] Thus when the assessee was running a school for educational purposes and not for earning profit, then it was entitled to the exemption u/s 10(23C)(vi) of the Act. - Decided in favour of assessee. - ITA No. 699/Asr/2017 - - - Dated:- 17-1-2019 - Shri. N.K. Saini, Vice President And Shri. Ravish Sood, Judicial Member For the Assessee : Shri Ashwani Kumar, CA Shri Vinay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emption u/s 10(23C)(iiiad) of the Act till Financial Year 2014-15 and that the Audit Report in form No. 10BB for Financial Year 2015-16 was furnished in the case of the school which revealed that it had claiming exemption u/s 10(23C)(vi) of the Act. However, the Ld. CIT (E) was of the view that the information provided by the assessee was not relevant as the assessee was not a separate entity having a PAN of its own and what had been filed was copies of the Income-tax returns filed by the Society. The Ld. CIT(E) held that exemption u/s 10(23C)(vi) of the Act was allowable to any University or any other educational institution solely for educational purposes and not for the purpose of profit and that the assessee even though a school was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the parties and carefully gone through the material available on record. In the present case it is not in dispute that the assessee furnished its application in form No. 56D of the Act in accordance with Rule 2CA(2) of the Income Tax Rules, 1962. To resolve the present controversy, it is relevant to discuss the provisions contained in Section 10(23C)(vi) of the Act, which reads as under:- Sec. 10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included 10 (23C) any income received by any person on behalf of- .... (vi) any university or other educational institution existing solely for educational purposes and not for purposes of prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucational purpose and not for the purpose of profit, if the aggregate annual receipts of such university or educational institution do not exceed the amount of annual receipts as may be prescribed. Clause (vi) makes it clear that even if educational institution do no fall under either of those two categories such educational institutions are also entitled to the exemption, provided such institutions are approved by the prescribed authority. Therefore, all the three provisions apply under three different spheres. ....... Each educational institution is a separate entity controlled under various statutes for various purposes. The management of these educational institutions may be in the hands of the societies or the trust, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee, is also not included while computing the annual total income of the assessee. The aggregate annual receipts of other educational institution means, the total annual receipts of each educational institution. It has further been held that ........ (ii) That the Tribunal was correct in holding that the exemption in terms of provisions of section 10(23C) (iiiad) was available to the assessee as annual receipts of each of the institutions of the assessee was less than the prescribed limit under the provision . 8. We, therefore, by keeping in view the ratio laid down in the aforesaid referred to case are of the view that when the assessee was running a school for educational purposes and not for earning profit, then it w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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