TaxTMI 
TaxTMI 
2016 (12) TMI 680
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....have held that the assessee was entitled to the benefit of exemption u/s 10(23C) of the Act under the facts and in the circumstances of the case; In the alternative and without prejudice, the CIT (A) ought to have held that the income of the assessee was to be computed in accordance with the provisions of s. 11 of the Act; & (2) that the contributions to the building fund in a sum of Rs. 27,28,900/- being in the nature of corpus donations ought to have been excluded from the total income of the assessee. 3. Briefly stated, the facts of the issue are as follows: The assessee society has been running three schools in different parts of Bangalore under the name 'St. Miras High School'. For the assessment year 2005-06, the assessee socie....
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.... same. As there was no compliance to any of the hearings notices issued (supra), the CIT (A) had chosen to dismiss the appeal of the assessee society with a remark "the appellant's obvious disinterest in pursuing this appeal, I am left with no option but to dismiss the same confirming the AO's view [Refer: Para 5 of the CIT (A)'s order]. 5. Aggrieved, the assessee society has come up with the present appeal. During the course of hearing, the submissions made by the assessee society's counsel are summarized as under: - That registration under s. 12A deserves to be granted to the assessee society with effect from AY 2005-6 itself, as the facts as well as the findings of the AO will establish that the conditions for the grant of registratio....
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....nd taken by the AO as well as the CIT (A) and, accordingly, urged that no interference of this Bench is warranted at this stage. 6. I have carefully considered the rival submissions, perused the relevant materials on record and also the documentary evidences produced by the learned Counsel for the assessee society in the form of a paper book. At the outset, we would like to point out that the entire income earned by the assessee society was brought under the tax net by the AO on a sole ground that 'The assessee is running 3 educational institutions in the name of St Miras High School at 3 places in Bangalore. The gross receipts exceeded Rs. 1 crore.' Thus, the gamut of the issue before us for adjudication is: whether the assessee was entit....
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....Therefore, the expression 'aggregate annual receipts' has to be understood in the context in which it used and the purpose for which the provision was inserted, keeping in mind, the scheme of the Act. Therefore, in the case of an assessee running several educational institutions, if any of them is wholly or substantially financed by the Government, then the income from such educational institution received by the assessee is not included while computing its total income. Similarly, income from each educational institution if it is not receiving any aid from the Government wholly or substantially in respect of which the aggregate annual receipts do not exceed Rs. 1 crore received by the assessee, is also not included while computing the annu....