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2015 (12) TMI 37 - AT - Income TaxNon-granting of exemption u/s. 10(23C)(iiiab) - denial of benefits of exemption u/s. 11 also - Held that:- An identical issue was considered by the Tribunal, Pune Bench in the case of Deccan Education Society [2015 (7) TMI 649 - ITAT PUNE ] wherein also the Tribunal had the occasion to consider the fact that the institution was accepting capitation fees in the form of donation and the Tribunal allowed exemption u/s. 10(23C)(iiiab) of the Act finding that nothing was brought on record to show that such donation has not been accounted for or utilized by any trustees or their relatives or utilized for purposes other than education. Thus, from the totality of the aforestated facts in the light of the judicial decisions discussed hereinabove, the two conditions vis-à-vis institution should solely exist for the purpose of education and it should not exist for the purpose profit have been successfully fulfilled by the assessee society. If the Government grant receipt is less than 50%, the assessee cannot be denied exemption u/s. 10(23C)(iiiab) of the Act on the ground that the condition of “substantially financed” by the Government stands violated . Thus no hesitation to hold that the institution is “substantially financed by the Government”. Thus, fulfilling the third condition also for the eligibility for claiming exemption u/s. 10(23C)(iiiab) of the Act.It would not be out of place to mention here that even after the survey and search operation, the Government grants are still received by the Institution which establishes the fact that even in the eyes of the Government, the institution is solely existing for imparting education. We, therefore, direct the AO to grant exemption u/s. 10(23C)(iiiab) of the Act. In the case in hand, the exemption has been denied solely for the reason that the institution has received the capitation fees. This issue has been elaborately discussed by the Tribunal while restoring the registration u/s. 12A of the Act as mentioned elsewhere. There is not even a whisper in the orders of the authorities below which could suggest that the facts of the case are hit by the provisions of Sec. 13 of the Act. After considering the facts in totality in the light of the decision of the Tribunal in assessee’s own case while restoring the registration u/s. 12A of the Act in our understanding of the facts qua the relevant provisions of the Act, we are of the opinion that the assessee is entitled for the benefit of Sec. 11 of the Act. We, therefore, direct the AO to grant the benefits of Sec. 11 of the Act. - Decided in favour of assessee
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