TaxTMI 
TaxTMI 
2015 (12) TMI 1278
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....6.5.2011, which was meant for assessment year 2009-10 onwards, therefore, the assessee was not eligible for exemption under section 11 of the Act in the relevant assessment year. On being confronted by the Assessing Officer, the submission of the assessee was that the society was running a school and the receipts of the same were below Rs. 1 crore. Therefore, it was eligible for exemption under section 10(23C)(iiiad) of the Act. However, the Assessing Officer did not agree with the said submission of the assessee. He was of the view that the trust deed of the assessee showed that it had objects which were not restricted to advancement of education alone and, therefore it could be said that it is not existing solely for the purposes of education. He further observed that for claiming exemption under section 10(23C)(iiiad) of the Act as per Rule 16CC of the Income Tax Rules, Audit Report in Form No.10BB is required to be furnished under the tenth proviso to sub-section (23C) of section 10 along with return of income which was not filed by the assessee. In this way, the Assessing Officer held that the assessee was not eligible for exemption either under section 11 or even under sectio....
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....t) iii) Director of IT(exemption) Vs.Institute of Franciscan Clarist Sister of the Most Blessed Sacrament (2005) 196 CTR (del)582. iv) CIT vs. Vidya Vikas Vihar(2004)265 ITR 489(BOM) v) U.S Srivastava educational memorial Society vs. Asstt.CIT(2004)82ITJ(luck-trib)471. vi) Digember Jain Society for child welfare Vs.Director General of Income Tax(Exemptions). vii) CIT vs St.Mary's Malankara Seminary. viii) ITO vs. Baba Dhall Educational Society of India(2009) 27 SOT 391(Del)(ITAT-F.Bench) 5. After hearing the assessee at length, the learned CIT (Appeals) relying on the judgments citied by the assessee allowed the appeal of the assessee on the basis that the assessee trust is carrying out only educational activities during the year and since the receipts during the year are below Rs. 1 crore, it is eligible for exemption under section 10(23C)(iiiad) of the Act. On the issue of filing of Audit Report, the learned CIT (Appeals) observed that the Audit Report in Form No.10B of the Act is not required to be filed in respect of assessee's claim of exemption under section 10(23C)(iiiad) of the Act. In view of these findings, the learned CIT (Appeals) deleted the additi....
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....tay home, rehabilitation centers and dispensary, etc. for distressed general masses. This was shown to us to emphasize the fact that the running of educational institution is one of the objects of the assessee trust. It was stated that during the year 2009-10, the assessee had constructed school and during the year 2010-11, the assessee had started educational activities. No other activity had been carried out by the assessee during the year. Reliance was placed on a number of judgments to the effect that even if the assessee intended to claim exemption under section 11 of the Act while filing its return of income, it was not available to it due to the lack of registration under section 12A of the Act, the exemption available to it under section 10(23C)(iiiad) of the Act cannot be denied if it fulfils all the requirements of the said section. On the issue of filing of Audit Report as required by tenth proviso to sub-section (23C) of section 10 of the Act, it was submitted that the requirement of filing such Audit Report is only for institutions covered by clause (iv)(v)(vi) and (via) of section 10(23C) of the Act. Since the assessee is claiming exemption under section 10(23C)(iiiad....
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....e fact of educational activities being carried out by the assessee has been confirmed by the Assessing Officer himself in the Remand Report dated 18.2.2014 filed by him before the learned CIT (Appeals) during the appellate proceedings for the assessment year 2010-11. In this report, the Assessing Officer confirmed that the assessee trust is running a school for educating the deaf & dumb, mentally retarded, physically handicapped and poor students. After enquiries, the Assessing Officer also found that there are 250 to 300 children approximately in the school to whom the assessee trust is providing all facilities i.e. food, clothing, hostel, conveyance and medical etc. for which no charges have been received by the assessee. The assessee may be having many other objects in its trust deed but during the year no other activity other than education has been pursued by it. The exemption under section 10(23C)(iiiad) of the Act is available on the educational activities of an assessee and if the assessee is carrying on only this sole activity during the year, the exemption cannot be denied to it on the basis that it has other objects also in its trust deed. There is no allegation by the A....
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....r that the exemption under section 10(23C)(iiiad) of the Act cannot be given to the assessee as it did not file the Audit Report along with the return of income as required by the tenth proviso to sub-section (23C) of section 10 of the Act. The tenth proviso to section 10(23C) of the Act reads as under : Provided also that where the total income, of the fund or institution or any university or other educational institution or any hospital or other medical institution referred to in sub- clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via), without giving effect to the provisions of the said sub-clauses, exceeds the maximum amount which is not chargeable to tax in any previous year, such trust or institution or any university or other educational institution or any hospital or other medical institution shall get its accounts audited in respect of that year by an accountant as defined in the Explanation below sub-section (2) of section 288 and furnish along with the return of income for the relevant assessment year, the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed. 11....