2015 (3) TMI 227

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....ating patients suffering from various diseases. The society is established as a Philanthropic Institute which is exempt from tax u/s 10(23)(iiiac) of the Income-tax Act, 1961 ['the Act', for short]. This assessee-society is also registered u/s 12AA of the Act vide letter dated 16.7.2003 w.e.f. 6.8.1997. For A.Y. 2009-10, the assessee-society filed its Return of Income [ROI] on 7.12.2009 declaring NIL income. The A.O. found that out of the total receipts of Rs. 7,52,52,002/-, the assessee-society has spent only Rs. 5,22,97,678/- during the relevant year which amounts to 69.5% of the receipts and has set apart the remaining amount. In case the assessee has to set apart receipts more than 15%, it has to declare in Form No. 10 upto the ....

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....essee that the entire income is exempt u/s 10(23C)(iiiac) being society substantially financed by the Government ignoring the fact that as per the audit report the assessee claimed exemption u/s 10(23C)(iiiae) of the Act and the A.O. disallowed the same as during the year under consideration the total receipts of the assessee exceeds Rs. 1 crore. 4. The assessee-society has raised the following grounds in its CO:     "On the facts and in the circumstances of the case, the ld. CIT(A) was fair and just in allowing the deduction u/ 11(2) of the I.T. Act as the assessee has filed Form No. 10 much before the date of completion of assessment on 20.12.2011. The same is allowable as held by the Hon'ble Rajasthan High Court ....

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....er u/s 143(3) of the Act. Thus, in view of the above stated dictum of the Hon'ble Jurisdictional High Court and that of the Hon'ble Apex Court the A.O. cannot deny deduction u/s 11(2) of the Act to this assessee. Therefore, we confirm this finding of the ld. CIT(A). Further, the assessee-society has claimed exemption u/s 10(23C)(iiiac) of the Act and not u/s 10(23C)(iiiae) of the Act as the receipts of the assessee-society are from treatment given to the persons suffering from illness on charitable considerations. The assessee society is substantially found financed by the State Government, which fact has been verified by the A.O. and has not been rejected by him. The State Government employees are executive office bearers of the so....