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TMI Blog2025 (4) TMI 1477X X X X Extracts X X X X X X X X Extracts X X X X ..... itions and disallowances made by learned assessing officer is contrary to the law and facts of the case. 2. For that on the facts and in the circumstances of the case, the Ld. CIT(A) erred in confirming the action of AO denying the benefit of exemption claimed u/s 10(23C) (iiiad) of the Act. 3. For that on the facts and in the circumstances of the case, the lower authorities failed to correctly appreciate that the assessee was indeed maintaining and aiding education institutions and it existed solely for educational purposes without any motive for profit and since its annual receipts did not exceed the limit of Rs. 1 crores, it had rightly claimed exemption u/s 10(23C) (iiiad) of the Act. 4. For that on the facts and in the circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was taken for complete scrutiny and statutory notices were duly issue and served on the assessee. The assessee is running a school in the name and style of Berahampore Polytechnic College for Advancement of Education and Knowledge in Science, Engineering, Education and Research. The assessee-trust claimed exemption u/s.10(23C)(iiiad) of the Act qua its income. The AO during the course of assessment proceedings noted that annual receipts of the assessee were Rs. 1,31,55,461/-. According to the AO since the annual receipt of the assesee was more than Rs. 1 crore and, therefore, the benefit of provisions of Section 10(23C)(iiiad) of the Act was not applicable to the assessee. Accordingly, a show cause notice was issued to the assessee which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uance of a resolution adopted by the Trustees in their meeting held on 03.01.2000, which read as follows: "Abstract of minutes of meeting Trustees of Vidya Bharati Society for Education and Scientific Advancement held on 3rd January, 2000 at Registered office in Kolkata. DEVELOPMENT FUND It was unanimously resolved that Development Fund be collected from each student of Vidya Bharati School (Mominpur) of the Trust for further development of school building and purchase of capital equipments required for various educational activities required for school purpose and as per studies curriculum. It was further resolved that development fund so collected would not be used for revenue purpose of the school and it would be used for only deve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. AR filed before us sample copies of the receipts issued from which it was evident that the contributions to 'Development Fund' were not collected on monthly basis along with tuition fees for the month but the students paid contributions to Development Fund at their own volition at any time during the year. We therefore find that the basic premise on which the lower authorities proceeded i.e. the development fund contributions were compulsorily collected by the assessee society from each student along with monthly tuition fees on monthly basis being factually wrong, the conclusions drawn based on assumption of wrong facts is therefore unsustainable. 10. We also find merit in the ld. AR's argument that merely because the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd' Account appearing in the balance sheet. These materials considered cumulatively and harmoniously lead only to conclusion that the development fees contribution received from the students were intended to provide corpus or capital of the assessee society which was to be solely used for specific capital purposes and there was embargo on the assessee society to utilize it for revenue purpose. As far as the Revenue's objection that the donor did not give any express written direction for treating such contributions to be forming part of corpus, we note that there is no such requirement prescribed in law mandating a written direction from the donor so as to constitute any voluntary payment to form part of the corpus. By the conduct o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the collections made by way of development fees to be revenue receipt. We however note that the premise on which the lower authorities proceeded were factually wrong. We find that the development fees was collected from the students once in a year and no material has been brought on record by the lower authorities to establish that the amount was received in consideration of any service being rendered or provided to the students in lieu thereof. As such, we do not any material brought on record by the lower authorities or before us by the Ld. DR to substantiate that the contribution towards development fund was not voluntary or that it was in exchange for the services provided by the assessee society to the payers. In this regard we may gai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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