2010 (1) TMI 807

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....That the Learned Commissioner of Income Tax, Faridabad has failed to appreciate the facts of the case and has dismissed/rejected the application for approval U/s 80G read with Rule 11AA(5) of I.T. Rules, 1962, without appreciating the facts I) the society is running a Higher Secondary School duly recognized by Central Board of Secondary Education Govt. of India ii) duly constituted under the societies act iii) having excess of gross receipts on account of tuition fee and other charges recovered from students over the actual expenditure towards imparting the education being very nominal as per details below:- Particulars F.Y. 2008-09 F.Y. 2007-08 F.Y. 2006-07 Gross Receipts as per Income and Expenditure account 8548682 14317623 68643....

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....pply the funds to the extent of 85% and can accumulate upto 15% of the receipts in normal course. The assessee has not submitted any intimation in Form No.10 which was mandatory. Explanation submitted by the assessee was not satisfactory and the learned CIT ultimately held that the society has violated the provisions of section 11(2) of the Act and accordingly rejected the claim of the society under section 80G of the Act.   4. The learned counsel for the assessee Shri P.D. Mittal pointed out Para 4 where the learned Commissioner of Income-tax has reproduced a chart where he has excluded depreciation and capital expenses out of the receipts. The said chart is reproduced for the sake of clarity as under:-   Financial Year Gross ....

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.... Paper Book which are reproduced as under:-   (A) To open Nursery, Primary, Higher and Higher Secondary Schools, Degree College for poor and needful people.   (B) Teaching of modern arts and modern study.   (C) Teaching and practicing from Orchard, Horticulture and other agro related activities.   (D) Teaching of ideology of great Indian Saints leaders and education.   (E) To improve pupils mental, physical and moral growth though cultural activities.   (F) To help the pupils develop their inner qualities and spirit of a creative leadership.   (G) To obtain money for the aims and objects of the society in the lawful manner such as donations etc.   (H) To do all such acts to promote study and r....