TaxTMI 
TaxTMI 
2023 (2) TMI 764
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....n various grounds of appeal by the assessee is against the order of Ld. CIT(E) holding the assessee has not fulfilled the requirements of Section 10(23C)(iiiad) of the of the Act by ignoring the fact that the assessee is existing solely for educational purposes and not for purpose of profit and its annual receipts during the year is less than Rs. 1 crore. 3. Facts in brief are that the assessee filed return of income on 31.08.2017 declaring total income of Rs. 3,33,900/-. The case of the assessee was selected for complete scrutiny and statutory notices were duly issued and served on the assessee. In response to the notice, the assessee furnished the details in the E-proceedings in consonance with the requisition/directions made in the noti....
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....itted that assessment was framed u/s 143(3) of the Act by the AO and the issue has been examined and only after through scrutiny the exemption claimed 10(23C)(iiiad) of the Act has been accepted. The assessee has relied and referred to the decision of Hon'ble Apex Court before the ld CITEUR in the case of Malabar Industrial Co. Ltd. vs. CIT [2000] 109 Taxmann 66 (SC) explaining that the provisions of Section 263 of the Act is not applicable in a case of non-satisfaction of one of the two conditions. The assessee has submitted that for determining eligibility of exemption u/ s 10(23C)(iiiad) of the Act aggregate annual receipt from the educational activities was to be considered in lieu of gross receipts. The Ld. CIT(E) after considering the....
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....deed of the assessee that the assessee is solely formed for the purpose of establishing schools and educational institutions. We also observe that there is not in dispute that it has engaged in running an educational institution. As a matter of fact that the assessee is engaged in running school in which no fee is being charged from the students due to severe poverty and backwardness and the local resident are not sending their children to schools. We further note that the assesse has also incurred a sum of Rs. 41, 83,982/- on various expenses connected with running and maintenance of the school. Considering these facts , we find merit in the contentions of the Ld. A.R that the assessee is engaged in solely for educational purposes and not ....
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....aid trust out of interest income from investments, has been accumulated to the extent of 88% and only 12% were applied for these activities and and further held that the provisions of Section 10(23C)(iiiae) of the Act would be applicable to the said trust as the institution is engaged in running medial dispensary and providing free medical treatment of patients as aggregate annual receipt does not exceed Rs. 1 crore. The operative part is reproduced as under: 4. We have heard the rival contentions of both the parties and gone through the record. Before proceeding further, it will be appropriate to firstly reproduce the relevant provisions of Section 10(23C)(iiiae) of the Act, which reads as under: "[10. Incomes not included in total inc....
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....ellant 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 given free of cost to patients. There is no denial of the fact that the appellant Trust is running the dispensary purely on philanthropic purposes. Since, the aforesaid medical treatment is given free of charge, hence there is no question of earning of any income from such activity. As observed above, there is no requirement of provision Section 10(23C)(iiiae)] of the Act that the income should be earned ....