TaxTMI 
TaxTMI 
2011 (7) TMI 75
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....e Tribunal‟) covering both the assessment years by the said common order. The question which arises for consideration was common to both the years which had arisen before the Tribunal to decide the same by a singular order. 2. The issue touches upon the allowability of exemption to the assessee under Section 10(23C)(iiiad) of the Income Tax Act (for brevity „the Act‟) and \][has arisen under the following circumstances. For the Assessment Year 2002-03, the assessee filed the income tax return declaring income at „NIL‟ claiming exemption under Section 11 of the Act. The assessee, which is a society under the Societies Registration Act, claims to be an "Educational Institution", having been found solely....
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....AO due to alleged negligence on the part of the Accountant is concerned, the AO was not justified in disallowing the entire expenditure despite the audited accounts being existed on record before him. He allowed all the expenditure except provisions for bad debts amounting to Rs.30,357/- and the amount of Rs. 1 lac out of total travelling expenses of Rs.5,05,131/-. CIT (A) also went into the question of applicability of provision of Section 10(23C)(iiiad) of the Act, examining the documents filed by the assessee in support of this claim and also invited comments of the AO. The AO, however, reported that various particulars were given to the assessee by him at the time of assessment proceedings by issuing notices, but the assessee had not re....
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....nder the said provision was claimed by the assessee before the AO and the AO had no opportunity to examine the same. (b) Even on merits, it is the order of the authorities below is assailed that all the conditions are not satisfied for availing exemption by the assessee. 8. In support of the first proposition, the learned counsel for the Revenue relied upon the judgment of the Supreme Court in the case of Commissioner of Income Tax Vs. Stepwell Industries Ltd. and Others [228 ITR 171] and particularly the following passage therefrom: "The Tribunal was wrong in allowing the claim of the assessee for weighted deducted under section 35B without going into the facts of the case. The claim was not made before the In....
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....Trust established for "charitable purposes". However, to claim exemption under Section 11 of the Act, it is a pre-condition that the same is given registration such as under Section 12A of the Act. For this technical reason, the assessee could not be granted exemption under Section 11 of the Act. At the same time, such educational Trust can seek exemption also under Section 10(23C)(iiiad) of the Act a well. This provision reads as under: "Income not included in total income; 10. In computation the total income of a previous year of any person, any income falling within any of the following clauses shall not be included - (23C)(iiiad) - any university or other educational institution existing solely for educational purposes and not....
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....d) was available. That apart before examining this condition, the CIT(A) asked remand report from the AO. However, the AO refused to even comment on merits of the claim of the assessee and simply objected to the plea of the assessee only on the ground that since no compliance was made on various noticed issued by the AO, the claim of the assessee could not be accepted. 13. In these circumstances, this very contention was rightly rejected by the Tribunal. We do not find any merit in the contention of the Revenue assailing the order of the Tribunal. 14. Coming to the second issue, viz., whether the assessee Trust is solely for the purposes of education. We find that the assessee highlighted the following aspects on the bas....