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2013 (8) TMI 553 - AT - Income TaxExemption u/s 10(23C)(iiiad) - substantial govt aid - computation of turnover of Rs.1 crore - three educational institution - Held that:- Assessing Officer has considered the total receipts of three educational institution being run by the assessee society whereas the claim of the assessee is that the same should be considered separately and if it is done then, the income of these institutions is fully exempt U/S 10(23C)(iiiad) - the annual gross receipts of three educational institution being run separately by the assessee society cannot be clubbed together for examining the fulfillment of the conditions of receipt being less then the prescribed limit of annual gross receipts. - Following decision of Jat Education Society Versus Dy. CIT [2011 (3) TMI 569 - ITAT DELHI] - Decided in favour of assessee. Deduction u/s 10(23C)(iiiab) - requirement of approval of CCIT - Held that:- As per the provisions of this sub-clause (iiiad) of clause (23C) of section 10 that the term "aggregate annual receipts" of each educational institution is relevant and if any assessee is having more than one educational institution then the aggregate annual receipt of each of such educational institution has to be considered separately - the income of these three institutions are also exempt u/s sub-clause(iiiad) of clause (23C) of section 10 because aggregate income of each of these institutions in each of these two years is below Rs. 1 crore. The requirement of approval of CCIT under sub-clause (vi) of clause (23C) of section 10 is for those who are not covered by sub-clauses (iiiab) or (iiiad) of clause (23C) of section 10. Since, these three institutions are covered by clause (iiiad), clause (vi) is not applicable - Decided in favour of assessee. Substantial Government Aid - Held that:- the percentage of grants in aid with respect to total receipts are more than 34.33% considered by the Hon'ble Karnataka High Court to be substantial [2011 (2) TMI 1235 - Karnataka High Court]. - the assessee/institutions were substantially financed/aided by the Govt. and hence are eligible for exemption u/s 10(23C)(iiiab). - Decided in favor of assessee.
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