The ITAT allowed the assessee's appeal, set aside the CIT(A)'s...

The ITAT allowed the assessee's appeal, set aside the CIT(A)'s order and directed the AO to delete the disallowance, holding that the educational institution qualifies for exemption under s.10(23C)(iiiad). The Tribunal ruled that interest and dividend receipts of the trust are not includible in the school's annual receipts for the statutory Rs.1 crore threshold; consequently, the institution's annual receipts from the educational activity fall below the ceiling and the corresponding capital gains/gross receipts are exempt. The coordinate-bench precedent was applied to conclude that the entire income attributable to the educational institution is exempt from tax, and the assessment adjustments disallowing exemption were reversed.

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