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2013 (11) TMI 1060 - HC - Income TaxEducational institutions u/s 10(23C) – Held that:- General observations should not and cannot become the basis of invoking 13th proviso to Section 10(23C) – Following ICAI Accounting Research Foundation & Anr. Vs. Director General of Income Tax (Exemptions) & Others [2009 (8) TMI 61 - HIGH COURT OF DELHI] - As long as the user of that money is charitable, then the exemption has to be granted - Merely because some remuneration was taken by the Petitioner Foundation for undertaking these projects would not alter the character of these projects, which remained research and consultancy work - The amended definition of charitable purpose would not alter this position – The issue was restored for fresh decision. Separate books of accounts – Held that:- Proviso to Section 10(23C) applies only if the authority comes to the conclusion that the charitable institution is incidentally carrying on business for the purpose of attainment of objects - In these circumstances only, separate books of account are required to be maintained - The petitioner’s returns for the earlier years have been duly accepted by the Assessing Officer without any objection or observation that the maintenance of accounts was defective and separate books were not maintained for the “incidental business” – The issue was restored for fresh decision.
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