2007 (1) TMI 92

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....society which is existing solely for educational purposes and not for any profit motive. Even for the years subsequent to the assessment year in question, we have been told that the Assessee has been granted exemption under Section 10 (22) of the Act. 3.In the assessment year that we are concerned with, it has been pointed out that there were three discrepancies in the accounts maintained by the Assessee which led the Assessing Officer to come to the conclusion that it was not existing solely for educational purposes but also for a profit motive. 4.The first discrepancy pertained to a donation that had been made by one Mr. Bhatia of Rs.50,000/-. The donation was made in cash and when the Assessee was asked to explain as to why penalty und....

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....egation made against the assessee was that through some donations, it was introducing unaccounted money into its corpus. It was held, even though it was a case under Section 11 of the Act, that the list of donors had been submitted and even if that list was not submitted or the donors were not produced, it would not necessarily lead to an inference that the assessee was trying to  introduce unaccounted money by way of donation receipts. 8.In so far as the present case is concerned, we find that there is no dispute about the fact that the donations totaling Rs.5,09,760/- were utilized for construction of the building of the school, which is clearly an educational purpose. By no stretch of imagination can it be said that the donations w....

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....and on this basis the Assessee was not entitled to exemption under Section 10(22) of the Act. 12.Learned counsel for the Assessee has placed reliance upon the order of the learned Tribunal wherein it has been noted that details of construction of the school building through M/s. Pokhriyal Construction have been filed. A copy of the agreement between the Assessee and M/s. Pokhriyal Construction was also placed in the paper book along with the minutes of the Assessee society, the details of payments and balance due. It was nobody's case that the building was not constructed. Therefore, it must follow that the building having been constructed, the funds that were given to M/s. Pokhriyal Construction were utilized for services rendered in cons....