TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 894
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....der section 143(1) of the Income Tax Act. 3. The appellant prays for leave to add, modify and amend any of the grounds of appeal and to take any sub grounds of appeal within the aforesaid grounds of appeal." 3. Suffice to say, both the learned lower authorities have held the assessee as not entitled for the impugned exemption u/s 10(23C) of the act qua the corresponding capital gains even if it's gross receipts do not across the threshold amount of Rs. 1 crore. 4. That being the case, this tribunal's coordinate bench order in ITA 456/Kol/2022 Rukmani Birla Educational Society v. ITO(E) has rejected the revenue's very stand as under: "3. Facts in brief are that the assessee is a society registered under the West Bengal Societies Registration Act, 1961 and has been established and existing solely for educational purposes and not for the purposes of profit. The assessee filed its return of income on 23.09.2019 declaring total income of Rs. 51,01,460/- which was processed u/s 143(1) vide order dated 27.05.2020 wherein the claim u/s 10(23C)(iiiad) of the Act was rejected. Prior to the issue of said order u/s 143(1)(a) of the Act, a communication of adjustment u/s....
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....We note that the total receipt of the assessee during the year from dividend and interest was to the tune of Rs. 1,52,72,460/-. The AO made addition of Rs. 1,01,17,999/- u/s 115BBDA and levied the tax @ 10%. The assessee also moved a rectification application which was dismissed by the AO. Now the issue before us for adjudication whether the income of the society from a source other than the educational activities is part of the annual receipt for the purpose of determining the claim of exemption u/s 10(23C)(iiiad) of the Act. Undisputedly the income of the society from dividend and interest is from a source other than the educational activities and exceeds 1.00 Cr. After hearing the rival arguments and perusing the case laws as placed before us, we are of the considered view that the same is not the part of annual receipt of the educational institution for purpose of Section 10(23C)(iiiad) of the Act as it clearly talks about the annual receipt from the educational activities which apparently does not include the income of the society from a source other than from the educational activities of the society. We have also noted that the Ld. CIT(A) has unequivocally given a finding in....
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....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 for the purpose of profit. The mere fact that the receipt of the assesse from sources other than the educational activities is more than Rs. 1.00 is not relevant and material. We are very clear in our understanding that the case of the assessee is squarely covered by the provisions of Section 10(23C)(iiiad) of the Act which provide that where the university and other educational institution existing solely for educational purposes and not for purposes of profit and if the aggregate annual receipts of such university or educational institution does not exceed Rs. 1 crore, the income would be exempt. In this case also, the receipt from the aggregate ....
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....esaid provision that the income/receipt of the Trust/Society should come from the charitable/philanthropic activity itself. The only requirement is that the hospital/institution should exist solely for philanthropic purposes and not for purposes of profit and the aggregate annual receipt of such hospital/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 given free of cost to patients. There is no denial of the fact that the appellant Trust is running the dispensary purely on philanthropic purpose....