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2015 (10) TMI 1891 - AT - Income TaxEntitlement to exemption u/s 10(23C)(iiiad) denied - Held that:- The only activity carried on by the assessee during the year is that of construction of the school building. This fact remains undisputed by both the Taxing Authorities. Now, in ‘Commissioner of Income Tax vs. Om Sarala Babu Educational Trust’(2014 (6) TMI 377 - ALLAHABAD HIGH COURT), the assessee had taken various steps, including the construction of the building of the school. The CIT(A) allowed a similar claim u/s 10(23C)(iiiad) of the Act. This was confirmed by the Tribunal. The order of the Tribunal was confirmed by the Hon’ble High Court. No decision to the contrary has been brought to our notice. It thus cannot, on facts, be said that during the year, the assessee institution did not exist solely for educational purposes. All the other distinctions sought to be made out by the learned CIT(A) do not act detrimental to the claim of the assessee, particularly when the expenses incurred were expenses incurred only on account of bank charges and interest, books and periodicals and purchase of dresses and lease rent and nothing else. Apropos the donations too, the affidavits of the donors were simply rejected summarily, without controverting the contents thereof and without showing the donations to be sham. It is pertinent to note that the capital contribution of ₹ 10,99,500/- was accepted by both the authorities below. Moreover, the assessee has obviously correctly not claimed deprecatioin on the assets, since the school did not start functioning during the year. Thus the order under appeal is reversed. Accordingly, the assessee’s claim u/s 10(23C)(iiiad) of the Act is allowed. - Decided in favour of assessee.
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