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2014 (2) TMI 1069 - AT - Income TaxAddition made u/s 69B of the Act - Undisclosed sale consideration for the purchase of a land - Claim of Exemption u/s 10(23C)(iiiad) of the Act - Survey action under S.133A - validity of statement which was retracted later – Held that:- In view of the retraction made by the said person, the Assessing Officer should not have simply gone by the contents of the letter dated 18.12.2010, without bringing on record any corroborative evidence – Relying upon Mehta Parikh V/s. CIT [1956 (5) TMI 4 - SUPREME Court] once an affidavit is filed by a person, the contents thereof have to be taken as true, unless established otherwise - Even assuming that the assessee paid any amount over and above the consideration disclosed in the sale deed, the payment of such amount was for the purpose of advancement of the objects of the assessee-society, viz. education, and consequently even on that ground, there is no justification for any addition, since its income is, as it is, exempt from tax - The claim of exemption under S.10(23C)(iiiad) in respect of ‘any income’ means the same is exempt provided the educational institution solely exists for educational purpose and not for the purpose of profit. The assessee society is exiting solely for purpose of carrying on educational activities, through its institutions - When such educational institution is approved by the prescribed authority and when the assessee also applies its income for the income or accumulates the same for subsequent application, wholly and exclusively for its objects, the institution is entitled for exemption in respect of any income – The decision in ACIT V/s. Muslim Educational Society [2009 (3) TMI 900 - ITAT COCHIN] followed – thus, there was no justification for the additions made by the Assessing Officer. Applicability of section 115BBC of the Act – Held that:- The assessee contended that the right from the beginning that it has been maintaining regular books of account, and has maintained record as to the identity of donors and the relevant details, and consequently provisions of S.115BBC are not applicable – the contentions of the assessee have not been controverted by the Revenue with any supportive material – The decision in Hans raj Samarak Society v. ADIT(E) [2012 (9) TMI 843 - DELHI HIGH COURT] followed – the assessee has maintained record of the donations with relevant details as to the identity of the donors, the provisions of S.115BBC are not applicable – thus, the order of the CIT(A) set aside – Decided in favour of Assessee.
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