2024 (7) TMI 210

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....ted 12.01.2024. 2. The revenue has filed the following grounds of appeal: "1. Whether the ld.CIT(A) was right in holding that the Assessing Officer was not justified in invoking section 13(1)(c) of the Act when the assessment order passed by the Assessing Officer clearly established the fact that there was violation of provisions of section 13(1)(c) of the Act and two parties, who had contributed to the assessee trust exceeding fifty thousand rupees, upto the end of the relevant financial year, were specified persons u/s. 13(3)(b) of the Act? 2. The ld.CIT(A) erred in deleting the addition made by invoking provisions of section 13(1)(c) when the guest house of the assessee trust was let out to the interested parties at ....

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.... Aggrieved by the order of the Assessing officer, the assessee preferred an appeal before the Ld.CIT(A). 5. Before the Ld.CIT(A), the assessee had raised various grounds and the Ld.CIT(A) considering that the society is Notified u/s. 10(23C)(iv) of the Act from the assessment year 1977-78, allowed all the grounds of appeal of the assessee by passing an order on 12.01.2024 by holding as under : "3. The assessing officer found that two individuals who have made donations to the society had stayed in lodging facilities of the society by paying nominal maintenance charges. So provisions of Section 13(1)(c)(ii) was invoked on the ground that the guest house of the society has been let out to interested persons at an inadequate rent a....

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....f the Act and in which case, it is not necessary to pass an order in respect of the alternative plea of the assessee-trust in regard to the deduction under section 11 of the Act. The jurisdictional Madras High Court held in this case that the Central Board of Direct Taxes, themselves, issued a circular bearing No. 712 dated July 25, 1995, (see [1995] 215 ITR (St.) 3), to the effect that the educational institutions are entitled to exemption under section 10(22) of the Act and consequently, the benefit conferred under section 10(22) cannot be denied on the ground of violation of section 11(5) of the Act. On the basis of above discussions, it is held that the assessing officer cannot raise a demand on the basis of disallowance u/s 11 as the a....

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..... 8. The Ld.AR took us through the Paper book page Nos.31 & 32 for having notified the society u/s. 10(23c)(iv) of the Act and renewed upto date and thereby the income of the society needs to be excluded from the total income as per Section 10(23C)(iv) of the Act. Further, the Ld.AR stated that, the Ld.CIT(A) has considered the entire facts and circumstances of the case and allowed the appeal of the assessee and prayed for dismissal of the appeal filed by the revenue. 9. We have gone through the rival contentions and perused the facts. It is an admitted fact that society has been registered u/s. 10(23C)(iv) of the Act along with the registration u/s.12A(a) of the Act. The Assessee is a charitable society and hence the conditions presc....