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TMI Blog2016 (1) TMI 1525X X X X Extracts X X X X X X X X Extracts X X X X ..... would be the income of the assessee which assessee has failed to show in the computation of income.
During the course of arguments, assessee was not able to show as to under which provisions of law, the income of the assessee would be exempt. Therefore, assessee miserably failed to rebut the findings of authorities below.
Finding of fact recorded by the authorities below has also not been rebutted by the assessee in any manner. It is, therefore, clear that assessee earned income during the year under consideration despite it has received grant from the Government of India for upgradation/strengthening of nursing services. In the absence of any plausible explanation and in the absence of any explanation as to under which provision of law, income of the assessee would be exempt, we do not find any justification to interfere with the orders of authorities below. The assessee has made a claim of exemption before authorities below under section 11/12AA of the Income Tax Act and Section 10(23C) of the Act which are clearly not applicable to the facts and circumstances of the case. Thus, assessee failed to prove any case of exemption of income under any provisions of Income Tax Act. X X X X Extracts X X X X X X X X Extracts X X X X ..... standard of Nursing Education and Training and very much covered under section 10(23C) of the Act, being substantially financed by Govt. Further/council is carrying on the charitable activities defined u/s 2 (15) of the Act as it is facilitating/ensuring better medical facilities to General public at large by way of proper training and education of Nurse, Midwifes, health visitors etc. 2(ii) The reply of the assessee was not found satisfactory by AO on the ground that mixed method of accounting adopted by the assessee was not permissible as per the provisions of section 145(1) of the Act. and since the assessee institution was not registered u/s 12AA of the Act for the year under consideration. Relying on the case law in the case of CIT Vs. Gem & Jewellery Export Promotion (Bom.) the AO held that as per the provisions of section 11 the assessee was required to spend 85% of the total income of Rs. 1,48,49,196/- i.e. Rs. 1,26,21,817/- during the year on charitable or religious purposes. However the assessee had only utilized Rs. 8,31,843/-. The AO treated the remaining surplus of Rs. 1,40,17,323/- as taxable income of the assessee. Aggrieved by the order of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , council is covered u/s 10(23A) of the Income Tax Act. In view of above it was prayed to consider the submissions favorably and allow the relief against the orders of assessing authority. 4. The ld. CIT(Appeals) considering the submissions of the assessee and material on record, dismissed the appeal of the assessee. His findings in para 3 of the appellate order are reproduced as under : "I have gone through the facts of the case, submission of assessee various provisions of the act and various case laws cited by assessee. The main argument of the assessee is that it is an organization covered by section 10 (23C) and has been subsequently granted registration u/s 12AA w.e.f. 01.04.2010 relevant for A.Y. 2011-12, Considering that assessee was not registered u/s 12AA and is following mixed account system and has received voluntary contribution, provisions of sections 2(24) are applicable to the facts and circumstances of assessee. The provision of section 10(23G) (iiiab) of IT Act are not factually .applicable as it is neither a University nor an educational institution solely for the educational purposes. In absence of assessee having registration u/s 12AA and assessee having fai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct being substantially financed by the Government before the authorities below. The ld. CIT(Appeals) specifically found that this provision is not applicable to assessee because assessee is neither a University nor Educational Institution solely for educational purposes which is also a condition precedent for claiming exemption of income under section 10(23C)(iiiab) of the Income Tax Act, therefore, such a claim of assessee was not tenable. No material is produced before us to show that assessee satisfied the requirements of Section 10(23C)(iiiab) of the Income Tax Act. Therefore, this claim of assessee was correctly rejected by the authorities below. Since the assessee has received voluntary contribution, therefore, provisions of Section 2(24)(iia) of the Income Tax Act would squarely apply and the amount received by the assessee from Government of India would be the income of the assessee which assessee has failed to show in the computation of income. 6(i) During the course of arguments, ld. counsel for the assessee was not able to show as to under which provisions of law, the income of the assessee would be exempt. Therefore, assessee miserably failed to rebut the findings of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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