2012 (12) TMI 1011

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the assessee was not registered under section 12A of the Income tax Act, and therefore, provisions of section 11 were not applicable. However, assessee had claimed exemption under section 10(23C)(iiiab) which was applicable in case of any university or other educational institution existing solely for education and which is wholly and substantially financed by government. The AO noted that the assessee had earned surplus of Rs. 94,59,983/- which showed that the activities were being carried on for the purpose of earning profit. The AO further noted that the assessee was also running unaided educational institutions for which grants were not received from the government. The AO therefore asked the assessee as to why claim under section 10(23....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... not so in the present case. The AO therefore rejected the claim of exemption under section 10(23C)(iiiab). As regards exemption already granted in earlier years the AO observed that res-judicata was not applicable in income tax proceedings. He accordingly denied the claim of deduction. 3. The assessee disputed the decision of AO and submitted before CIT(A) that the AO had applied provisions of Section 14(1) of Comptroller and Auditor General's (Duties, Powers and Conditions) of Service Act, 1971 in which the phrase "substantially financed" had been defined which was not so in case of section 10(23C)(iiiab) and, therefore, the said section was not applicable in case of the assessee. The assessee placed reliance on the judgment of Hon&#39....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ption. Aggrieved by said decision, the revenue is in appeal before the Tribunal. 4. The ld. DR appearing for the revenue supported the order of AO and placed reliance on the findings given in the assessment order whereas the ld. AR for the assessee argued that the case of the assessee was supported by the judgment of Hon'ble Jurisdictional High Court and, therefore, order of CIT(A) should be upheld. 5. We have perused the records and considered the matter carefully. The dispute is regarding allowability of exemption of income from tax under section 10(23C)(iiiab). Under the said section, income of any industrial or other educational institution existing solely for education which is wholly or substantially financed by the governme....