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2014 (4) TMI 924 - AT - Income TaxNature of assessee – Charitable institution or not u/s 12A of the Act – Exemption u/s 10(23C)(iiiad) of the Act - Held that:- The assessee exists more than 127 years and the college is established for the purpose of Arabic language, literature and culture and the college is affiliated to Madras University and simply because the students have to read the Quran and do prayers and have specific dress code, it cannot be said that it is not an educational institution - all activities are necessary for the educational institution to maintain discipline and equality among the students - the educational institutions have their own code of conduct to maintain the discipline to achieve ultimate object of education – CIT(A) also that the assessee is an educational institution - the assessee is an educational institution and 12A registration is not required for the relevant assessment year and eligible to claim exemption u/s 10(23C)(iiiad) of the Act. Monetary limitation u/s 10(23C)(iiiad) of the Act – Held that:- CIT(Appeals) has rightly classified the annual receipts during the financial year 2003-04 at Rs. 51,86,887/-being the annual and recurring income of the assessee - The sale proceeds of land and bonds which are capital receipts in nature, are not recurring income and are once in a lifetime – Relying upon Commissioner of Income-tax Versus St. Mary's Malankara Seminary [2012 (3) TMI 263 - KERALA HIGH COURT] - CIT (A) has rightly classified the annual receipts and granted exemption to the assessee u/s 10(23C)(iiiad) of the Act - thus, the assessee is an educational institution and the annual receipt of the assessee is below Rs. 1.00 crore and eligible for deduction u/s 10(23C)(iiiad) of the Act – Decided against Revenue.
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