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2014 (4) TMI 941 - AT - Income TaxEntitlement for exemption u/s 10(23C)(vi) of the Act – Exemption u/s 11 of the Act – Deposits and donations added – Nature of the Institution – Educational OR profit motive - Revenue was of the view that the donations are not voluntary and they are linked to the admission of the students to the educational institutions of the assessee, and thus, the assessee has collected higher fee over and above the prescribed fee limit - Held that:- The assessee is an educational society registered under S.12A of the Act, and its objects as appearing in the memorandum of association are for carrying on activities of general public utility in the field of education and charitable purposes – the assessee has received donations from the parents of the prospective students seeking admissions into the assessee's educational institutions - A list of such donations together with the particulars of the donors has also been furnished before the Revenue authorities - The AO has proceeded to decide the issue of assessee's claim for exemption, merely on the basis of suspicions and surmises, and the CIT(A) simply confirmed the action of the Assessing Officer, ignoring the findings and observations of the Assessing Officer in the remand reports and other material available on record. The GOMs. No.33 by the Government of Andhra Pradesh in respect of formulation of rules for admission into the Under Graduate Professional Courses in Engineering in Unaided Non-Minority Professional Institutions was issued on 20.6.2003, which is after the closure of the academic year under consideration, viz. 2002-03 - those Government orders are of no application to the year under appeal, viz. assessment year 2003-04, in the case of the present assessee - In any event, there were no violation of the rules –also, in the absence of any clinching material brought on record by the Revenue, to indicate that there were, in fact, violations warranting denial of exemption under S.11 of the Act - the assessee is entitled to exemption under S.11 of the Act - the additions made by the AO in the have no legs to stand – the order of the CIT(A) set aside - Decided in favour of Assessee.
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