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TMI Blog2022 (8) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... - 1-8-2022 - SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER AND SMT. BEENA PILLAI , JUDICIAL MEMBER Appellant by : Smt. Prathiba R. , A. R. Respondent by : Shri Sankar Ganesh K. , D.R. ORDER PER CHANDRA POOJARI , ACCOUNTANT MEMBER : These appeals by assessee are directed against different orders of CIT(A) dated 1.8.2019 for assessment year 2017-18 2018-19. 2. The only issue in this appeal is with regard to non-granting of exemption u/s 10(23C)(iiiad) of the Income-tax Act,1961 ['the Act' for short] while processing the return u/s 143(1) of the Act in these assessment years. 3. Facts of the case are similar in both the assessment years. We consider the facts in AY 2017-18 in which the assessee stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s statutes for various purposes. May be the Management of these educational institutions would be in the hands of the Societies or the Trust, but for all other purposes they are different, independent entities. But in the present case there are no such facts that each segment (section) are under control of various statutes for various purposes, therefore ratio of case law is not applicable in this case. Thus, Ld. CIT(A) observed that the Ld. AO correctly merged the receipts of all segments for calculation of exemption u/s 10(23C) of the Act, which has been bifurcated section wise by the assessee. Therefore, these grounds of appeal were dismissed by the Ld. CIT(A). Aggrieved by the order of Ld. CIT(A), the assessee is in appeal before us. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ety is running several educational institutions, if some of them are wholly or substantially financed by the Government in terms of sub-clause (iii)(ab), the income on behalf of such educational institution received by the assessee is exempted from being computed the total income of the assessee. If the assessee is running other educational institutions which are not wholly or substantially financed by the Government, then the benefit of that exemption is also extended to the income derived from such educational institutions and received by the assessee under subclause (iii)(ad) reading with sub-clause (iii)(ad) along with Rule2BC. It was contended, the Legislature used the word aggregate annual receipt and amount of annual receipts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isting solely for educational purpose and not for the purpose of profit, if the aggregate annual receipts of such educational institution exceeds Rs. 1 crore, then the income from such educational institution received by the assessee is excluded from his total income. In an educational institution the amounts are calculated periodically. It may be calculated under different heads. All such amount received constituted receipts and those receipts may be received throughout the year. Therefore, the word annual has been inserted. But to be eligible for exemption, aggregate of annual receipts should not exceed Rs. 1 crore i.e. the total annual receipts of a year if it does not exceed Rs.1 crore, then the income derived from such educational in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 29-1-2010 AY- 2000-01 to 2007-08 which has held that, capital expenditure has to be deducted from the gross income of the educational institution in determining whether 85 per cent of the income has been applied for its objects.) 3.2 Param Hans Swami Uma Bharti Mission vs. ACIT, (2013) 154 TTJ 0531 (Del) dt. 31-08-2012- AY-2006-07 From the plain reading of section 10(23C) (iiiad), it emerges that legislature had in its mind annual receipts of school or university as the case may be for consideration of exemption limit and not that of total income of society running that school or university. The present case is of a society running a school. The society besides income from running of a school is having other sources of income also. In the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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