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TMI Blog2023 (1) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption u/s 10(23C)(iiiab)? - HELD THAT:- AO gave a finding that the respondent-assessee was not wholly or substantially financed by the Government of India. CIT(A) without adverting the facts of the case, had merely relied upon the legal proposition, granted exemption u/s 10(23C)((iiiab) - CIT(A) without dealing with the issue, whether the respondent-assessee was in receipt of donations having nexus with admissions of students or not, simply held that the donations received by the respondent-assessee form part of the corpus funds. It is pertinent to note that if the donations received had direct nexus with admissions of students in the institutions run by society, such donations does not qualify for exemption as held in the case of Sinh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Return of Income for the assessment year 2011-12 was filed on 29.09.2011 along with audit report in Form No.10BB declaring Rs.Nil income after claiming exemption of income u/s 10(23C)(iiiab) of the Income Tax Act, 1961 ('the Act'). Against the said return of income, the assessment was completed by the Dy. Commissioner of Income Tax (OSD), Circle-1(2), Pune ('the Assessing Officer') vide order dated 26.03.2014 passed u/s 143(3) of the Act at a total income of Rs.112,69,25,149/-. The factual matrix of the case are as under : During the course of assessment proceedings, the Assessing Officer observed that the respondent-assessee received donations of Rs.8,06,74,462/- from 1600 people/donors, which are claimed to be voluntary and process wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10(23C)(iiiab) of the Act placing reliance on the decision of the Co-ordinate Bench of this Tribunal in assessee's own case for the earlier assessment years. As regards to the receipt of donations, the ld. CIT(A) held that the donations received by the respondent-assessee society form part of the corpus funds and not liable to tax. Accordingly, the ld. CIT(A) directed the Assessing Officer to delete the addition made and directed the Assessing Officer to allow the exemption u/s 10(23C)(iiiab) of the Act. 4. Being aggrieved by the decision of the ld. CIT(A), the Revenue is in appeal before us in the present appeal. 5. It is contended that the ld. CIT(A) erred in holding that the respondent-assessee trust is entitled for deduction u/s 10(2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me earned by any person established for the purpose of imparting the education and not for the purpose of profits which are wholly or substantially financed by the Government of India. No doubt, the law is settled that the exemption u/s 10(23C)(iiiab) is not available for specific institution, but as whole. But, question is whether the institution is wholly or substantially financed by the Government of India or not, is a pure question of fact. The Assessing Officer gave a finding that the respondent-assessee was not wholly or substantially financed by the Government of India. The ld. CIT(A) without adverting the facts of the case, had merely relied upon the legal proposition, granted exemption u/s 10(23C)((iiiab) of the Act. Further, the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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