TaxTMI 
TaxTMI 
2016 (5) TMI 873
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....43(3) of the I.T. Act, 1961, which is unjust and not following provisions of law and which deserves to be annulled; (ii) in not allowing exemption claimed U/s 10(23C)(iiiad)/ 10(23C)(iiiab) of the Income Tax Act, 1961 and further erred in including reimbursement of Capital Grant in building construction cost made by the State Government amounting to Rs. 1,23,90,976/- as income instead of capital grant; (iii) in not accepting the fact that the Society is fully financed by the State Government and further in not accepting that the gross receipt of the society is less than Rs. 1. Crore and that the society exists solely for educational purpose and not for purposes of profit." 2. The assessee is a charitable Trust running education instit....
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....is being carried out by society during the period relevant to the assessment year 2010-11. As the total income of society is much less than the prescribed limit of Rs. 1.00 crore, thus it is exempted U/s 10(23C)(iiiad) of the Act. The society under assessment was complying the conditions of the provisions of this Section. The society was qualified for the exemption under the provisions of the IT Act. During the year, the State Government reimbursed Rs. 1,23,90,976/- out of building expenses incurred by the society. It cannot be treated this amount for building construction owned by the society and cannot be considered as part of annual receipts as mentioned in this Section. It is just reimbursement of cost of building, which is owned by the....
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....3,90,976/- has been made by the AO on account of receipts from Govt. of Rajasthan. These' receipts have been claimed as reimbursement of expenditure incurred by the appellant on construction of building. The appellant has also declared total expenses of Rs. 43,59,428 against the receipt of Rs. 28,59,012 from the activities in the field of education and has shown a net deficit of Rs. 15,00,416 after claiming exemption u/s 11 of the IT Act. during the course of assessment proceedings it was noticed by the Assessing Officer that registration u/s 12AA of the IT Act which has been obtained by the society is applicable w.e.f. 23/06/2011. Therefore, the total receipts of the appellant have been considered as the income of the appellant for the....
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....emption u/s 10(23C)(iiiad) of the IT Act as the gross receipts for the period under consideration exceeds Rs. 1 crore. The appellant has merely reiterated the submissions filed earlier and has failed to bring on record any material to controvert the findings given by the AO. 4.9 The case laws relied upon by the appellant deal with the issue of earning of interest income on surplus funds parked in the form of fixed deposits, whether interest earned would be part of the receipts of the society or not. Therefore, it may be seen that the facts of the case are clearly distinguishable and would not be applicable to this case. 4.10 In view of the above facts, I hold that the AO was justified in holding that the appellant is not entitled for th....
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....only annual receipt of school or university would be considered for deciding the exemption limit U/s 10(23C)(iiiad) of the Act. The Govt. of Rajasthan had provided these lands for 25 years free of cost by executive order of the District Collector of Dausa to construct Women's Polytechnic. As per balance sheet as on 31/3/2010, total assets were Rs. 63,66,607/-. Total grant given for building was at Rs. 1,23,90,976/- and society is substantially financed by the State Government and eligible for exemption U/s 10(23C)(iiiab) of the Act. The gross receipts of the society is less than Rs. 1.00 crore, therefore, it is covered U/s 10(23C)(iiiad) of the Act. He further relied on the following case laws:- (i) Dy.Director of Income Tax (Exemptions) V....