2023 (1) TMI 624

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....nstitution registered as Public Charitable Trust under the Bombay Public Trust Act, 1950. It runs educational institutions in Pune, Mumbai, Sangli, Satara, Wai and Tirupati. The Return of Income for the assessment year 2011-12 was filed on 29.09.2011 along with audit report in Form No.10BB declaring Rs.Nil income after claiming exemption of income u/s 10(23C)(iiiab) of the Income Tax Act, 1961 ('the Act'). Against the said return of income, the assessment was completed by the Dy. Commissioner of Income Tax (OSD), Circle-1(2), Pune ('the Assessing Officer') vide order dated 26.03.2014 passed u/s 143(3) of the Act at a total income of Rs.112,69,25,149/-. The factual matrix of the case are as under : During the course of assessment proceedi....

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....and without giving an opportunity of cross-examination. However, the ld. CIT(A) held that there is no requirement that each institution has to be fulfil the criteria laid down u/s 10(23C)(iiiab) of the Act placing reliance on the decision of the Co-ordinate Bench of this Tribunal in assessee's own case for the earlier assessment years. As regards to the receipt of donations, the ld. CIT(A) held that the donations received by the respondent-assessee society form part of the corpus funds and not liable to tax. Accordingly, the ld. CIT(A) directed the Assessing Officer to delete the addition made and directed the Assessing Officer to allow the exemption u/s 10(23C)(iiiab) of the Act. 4. Being aggrieved by the decision of the ld. CIT(A), ....

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....ny evidence of receipt of capitation fees, disentitling the respondent-assessee from exemption u/s 10(23C)(iiiab) of the Act. The provisions of section 10(23C)(iiiab) grant exemption of income earned by any person established for the purpose of imparting the education and not for the purpose of profits which are wholly or substantially financed by the Government of India. No doubt, the law is settled that the exemption u/s 10(23C)(iiiab) is not available for specific institution, but as whole. But, question is whether the institution is wholly or substantially financed by the Government of India or not, is a pure question of fact. The Assessing Officer gave a finding that the respondent-assessee was not wholly or substantially financed by t....