Exemption for educational institutions depends on production of a duly audited, signed and stamped Income and Expenditure account.

Whether an educational trust is entitled to exemption under Section 10(23C)(iiiad) despite an inadvertent claim under Section 11 was resolved by directing verification of substantive documentary proof: the Tribunal required the assessing officer to examine a duly audited, signed and stamped Income and Expenditure account and, upon satisfaction, to allow the benefit of application of income and exemption under Section 10(23C)(iiiad); appeal allowed for statistical purposes and entitlement subject to production and verification of the audited accounts.

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Issues: Whether the assessee, a trust running educational institutions, is entitled to exemption under Section 10(23C)(iiiad) of the Income-tax Act, 1961 and to benefit of application/expenditure if it produces a duly audited, signed and stamped Income and Expenditure account, notwithstanding that the return erroneously claimed exemption under Section 11.

Analysis: The record shows the assessee is a registered trust engaged in educational activities and that the return inadvertently specified Section 11 instead of Section 10(23C)(iiiad). The Tribunal examined the documentary evidence on file including trust deed, affiliation certificate and the Income and Expenditure statement and addressed the objection raised by the Revenue concerning absence of authentication of the Income and Expenditure statement. The Tribunal directed the jurisdictional assessing officer to examine the audited Income and Expenditure account when produced by the assessee, specifically requiring the account to be duly signed and stamped, and to then allow the benefit of application/expenditure if the required audited accounts are furnished and verified.

Conclusion: The assessee is entitled to the benefit of application/expenditure and the exemption under Section 10(23C)(iiiad) (subject to production and verification of the duly audited, signed and stamped Income and Expenditure account); the assessing officer is directed to give such benefit upon satisfaction of the verification requirement. The appeal is allowed for statistical purposes in favour of the assessee.

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