TaxTMI 
TaxTMI 
2023 (1) TMI 221
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....ounds of appeal but its grievance revolves around a single issue, namely, ld. CIT has erred in invoking powers u/s 263 of the Act and thereby setting aside the assessment order for passing a fresh order. 3. Brief facts of the case are that the assessee filed its return of income on 07/06/2016 declaring total income at 'Nil'. The assessee is a charitable trust engaged in educational activities. The trust is registered u/s 12A of the Act vide No. S-88/WB-VII of 1983-84, dt. 29/07/1983. It has claimed exemption u/s 10(23C)(iiiad) of the Act. The Assessing Officer had selected the case for scrutiny assessment and verified the accounts. He found that income as per the income and expenditure account is Rs.84,41,466/- and accordingly, he allowed ....
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....of schools and teachers, photographs evidencing existence of schools, copy of certificate issued by local municipal authorities, copies of attendance reports of the teachers and students and allowances paid to the school teachers i.e., monthly pay sheets. While taking us through the accounts, the ld. Counsel for the assessee submitted that it is a society to whom corporate entities of Birla Group had donated the shares and out of the dividend income from that investment, the society is earning the income. It is purely a charitable organization which has been formed by different business organization. In order to strengthen its financial health for perpetuity, they have given certain investment and this was given long back since 1983-84. The....
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....any trust, educational institution or university, if the source of income in such a trust is out of educational activity. To our mind, the ld. CIT misconstrued the provision. The source of income can have many springs whereas for eligibility of exemption, the institution should be involved in education only. We find that this aspect has been considered by the ITAT in the case of Swasthya Sewa Sanstha (supra) relied upon by the ld. Counsel for the assessee. In this case, the assessee claimed exemption u/s 10(23C)(iiiae) of the Act i.e., for running a hospital and other medical institution. Action u/s 263 of the Act was taken by the ld. Commissioner on the ground that there was no nexus between the income and the expenditure and assessee has ....
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..../institution should not exceed the amount of annual receipt as may be prescribed, which is Rs. 1 crore for the relevant assessment year under consideration. Admittedly, the income of the institution for the assessment year under consideration was less than Rs. 1 crore. There was no allegation that the institution/appellant Trust exist for any other purposes. There is no allegation that the institution/appellant Trust is existing for any purpose of profit, or is doing any activity for the purpose of profit. As per the facts on the file, the appellant Trust is running a dispensary wherein the doctors from both Allopathy and Homoeopathy discipline of medicine visit the dispensary and the treatment is free of charge and even medicines are also ....
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....rplus of investment was being accumulated for spending in future years for the objects and purposes of the Trust like building of hospital, nursing home or any other similar medical institution. 5. In our view, all the conditions as prescribed u/s 10(23C)(iiiae) of the Act, have been fulfilled by the appellant Trust and there is no allegation that the appellant Trust is involved in any other activity for profit or does not exist for philanthropic purposes. Even in this case, all the facts are on the file, therefore there was no need for any further investigation by the AO as alleged by the ld. CIT(E). 6. In view of the above discussion, the action of the ld. CIT in directing the AO to disallow the exemption granted u/s 10(23C)(iiiae) ....