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2016 (7) TMI 1369 - AT - Income TaxDenying exemption u/s 10(23C)(iiiad) - scope of the object clause of the society - the stand of the AO was that apart from education, the assessee has other objects also, therefore, it is not entitled for exemption under section 10(23C)(iiiad) - Held that:- As decided in the case of Geetanjali Education Society (2014 (4) TMI 747 - KARNATAKA HIGH COURT) if it is established that the assessee has not carried out any other activities except education, then, the benefit of section 10(23C) cannot be denied. Even if an assessee having other objects in its memorandum of association, but in a particular year, it has acted exclusively for the purpose of education, then, exemption under section 10(23C) cannot be denied to an assessee. As in present case perusal of the details of expenditure would indicate that major amount incurred by the assessee was towards school expenses. It is a sum of ₹ 42,56,507/-. The other expenditure is of only ₹ 56,895/-. Similarly, major source of income to the assessee is fees from school amounting to ₹ 44,79,685/-. The alleged bank interest according to the assessee was out of the deposits from collection of fees etc. Thus, the details of expenditure would indicate that the assessee has not incurred any expenditure except small amount on any other activities than the education. CIT(A) has highlighted masjid expenses of ₹ 21,900/- which is a very meager amount, which is not a deciding factor for the activities of the assessee. All these facts are to be seen in the light of subsequent years where registration under section 12A has been granted to the assessee. Taking into consideration all these facts and circumstances, allow the claim of the assessee and direct the AO to grant exemption under section 10(23C)(iiiad) of the Income Tax Act. Appeal of the assessee is allowed.
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