2014 (8) TMI 565

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....e grounds raised herein, the Tribunal was right in holding that the receipt from the sale of bonds and property had to be excluded from the aggregate receipts received during the year by treating the said receipts as capital receipt and non-recurring receipt in nature and thereby arriving at the aggregate receipts of less than 1 Crore and consequently holding that assessee is entitled to exemption under Section 10(23C)(iiiad)? 2.1. The facts in a nutshell are as under: The assessee, namely, Madarasa-E-Bhakhiyath-Us-Salihath, was established in the year 1886 under the Tamil Nadu Societies Registration Act, 1860 for the purpose of running a college for Arabic language, literature and culture and the same is affiliated to the Madras Univers....

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....suing activities which are solely for educational purpose.  The finding of the Assessing Officer about educational activities of the trust was reversed by the Commissioner of Income Tax (Appeals) and the Revenue is not aggrieved thereby. Insofar as the receipt of amount on sale of land and bonds, referred supra, the Assessing Officer came to the conclusion that the receipt, as above, exceeds the limit prescribed under Section 10(23C) of the Act and, therefore, the assessee is not eligible for exemption under Section 10(23C)(iiiad) of the Act. 2.4. The Commissioner of Income Tax (Appeals), while accepting the plea of the assessee that the sale proceeds of land and bonds is capital in nature and not recurring income, held that 85% of ....

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....bonds which are capital receipts in nature, are not recurring and are once in a lifetime. In our opinion, the ld. CIT (Appeals) has rightly classified the annual receipts and granted exemption to the assessee under section 10(23C)(iiiad) of the Act. 2.6. Aggrieved by the said order passed by the Tribunal, the Revenue has filed this appeal raising the substantial question of law, referred supra. 3. We have heard Mr.Narayanasamy, learned Senior Standing Counsel appearing for the assessee and perused the order passed by the Tribunal and the authorities below. 4. Before adverting to the merits of the case, it is apposite to refer to Section 10(23C)(iiiad) of the Act, which reads as under: Section 10. Incomes not included in total in....