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TMI Blog2024 (5) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment Year (A.Y.) 2017-18. 2. Brief facts of the case are that the assessee society, running educational institution, filed it's return of income for the A.Y. 2017-18 on 24.03.2018, admitting Nil income, after claiming exemption u/s 10(21) r.w.s. 35 of the Act. The case of the assessee was taken up for scrutiny and accordingly, a notice u/s 143(2) was issued on 10.08.2018. Subsequently, the AO issued notice u/s 142(1), requiring the assessee to submit the details of it's income. In response, the assessee submitted the relevant information from time to time. During the assessment proceedings, the assessee submitted that it is an educational institution and the turnover has not exceeded the prescribed limit of Rs. 1 crore and hence it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition of Rs. 27,850/- made by the assessing officer towards disallowance of donations. 4. Without prejudice to Ground No.2 and Ground No.3, the learned Addl./JCIT(A) ought to have admitted the additional ground filed by appellant and ought to have held that the assessing officer is not justified in charging the tax on the total income at maximum marginal rate as against normal rates of tax applicable to the appellant society. 5. Any other grounds may be urged at the time of hearing. 5. Ground No.1 and 5 are general in nature, which does not require specific adjudication. 6. Ground No.3 and 4 are not pressed by the assessee, hence, dismissed as not pressed. 7. Ground No.2 is related to exemption claimed u/s 10(23C)(iiiad) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 35 of 2001 is running Degree and Junior college at Srikakulam, with an objective of providing education to poor etc. in a non profitable manner. The gross receipts of the society from Degree college was Rs. 84,81,714/- and the junior college was Rs. 18,66,811/-, which has not exceeded the threshold limit of Rs. 1 crore individually or even put together, if the receipts pertaining to F.Y.2015- 16 amounting to Rs. 10,82,585/- were excluded from the gross receipts of Rs. 1,03,48,525 and the balance comes to Rs. 92,65,940/-. In the decision relied on by the Ld.AR, on similar set of facts and circumstances, the coordinate bench of the Tribunal, held in favour of the assessee, relying on the decision of Hon'ble Karnataka High Court. For the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim for 10(23C)(iiiad) vide letter dated nil filed before the AO in response to the notice u/s 142(1) which was placed in page No.14 to 21 of the paper book. Hon'ble Karnataka High Court considered the similar issue and held that if the receipt of each educational institution does not exceed Rs. 1 crore, the same required to be not to be included in computing the total income of the assessee. For the sake of clarity and convenience, we extract para No.23 of the decision of Hon'ble Karnataka High Court which reads as under : "23. No doubt, education has become a business, a very profitable business also. But it requires huge investment. It is the duty of the Government to provide education to all its citizens, as the Government is not able ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e test prescribed under the aforesaid provision is not the income of the educational education. It is the aggregate annual receipts of such educational institution that is prescribed at Rs. 1 crore. Therefore, irrespective of expenditure incurred by those institutions, the exemption is based on the total receipts. Even if the word "aggregate" has to be understood as suggested by the Revenue as the annual receipts of such educational institutions put together, probably, the said provision regarding exemption would be of no use at all. Especially, if the society is running a medial college or any engineering college or other professional courses, then the annual receipt of each institution would run to few crores and therefore, the very objec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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