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2013 (8) TMI 331 - AT - Income TaxDeduction u/s 10(23C)(iiiad) - Assessee claimed deduction u/s 11 and 12 but CIT allowed deduction u/s 10(23C)(iiiad) also - Held that:- The assessee submitted the complete details before the authorities below and made a claim that it was running school - The assessee also claimed that the assessee exists solely for educational purpose.Claim of the assessee was not disputed by the AO. It is also not in dispute that total receipts of the assessee in the assessment year under appeal were less than ₹ 1 crore. Therefore, the claim of the assessee for exemption u/s. 10(23C)(iiiad) on additional ground was correctly raised. The issue was legal in nature, therefore, the ld. CIT(A) correctly admitted the additional ground for the purpose of hearing - assessee has been able to prove that apart from claiming deduction u/s. 11 & 12 of the IT Act, the assessee would be entitled for exemption u/s. 10(23C) of the IT Act. The ld. CIT(A) has given specific finding that the conditions of above provisions are fulfilled in the case of assessee - Following decision of Bar Council of Uttar Pradesh vs. CIT [1982 (9) TMI 37 - ALLAHABAD High Court] and CIT vs. Mayur Foundation [2004 (12) TMI 48 - GUJARAT High Court] - Decided against Revenue. Condonation of delay u/s. 11(2) - Failure to spend 85% of its total income - Held that:- The assessee has produced sufficient evidences and material on record to show that the assessee made full compliance of provisions of section 11(2) & (5) of the IT Act because resolution was passed to the effect of accumulation of surplus fund in the assessment year under appeal by way of converting the amount into FDR with Nationalized Bank, which was to be used for the purpose of construction of school building. Copies of the resolution, balance sheet and auditreport are filed to indicate the intention of the assessee to accumulate the funds for the purpose of making construction in the subsequent assessment year. The assessee also later on made a request for condonation of delay in filing Form No. 10 belatedly before the AO as well as CIT. Therefore, in the facts and circumstances of the case, particularly when surplus funds were accumulated and deposited with the Nationalized Bank, the delay in filing Form No. 10 should have been condoned - Decided against Revenue.
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