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2017 (3) TMI 1765 - AT - Income TaxRegistration u/s 12AA denied - assessee was already enjoying exemption u/s 10(23C)(iiiad) and was considered as engaged in the sole object of imparting education - HELD THAT:- In “Bharati Vidyapeeth Medical Foundation vs. ACIT” [2012 (12) TMI 1062 - ITAT PUNE], it has been held that when the law permits the assessee trust to claim exemption either u/s 10(23C) or u/s 11 of the IT Act, the choice should be left to the assessee and the assessee cannot be denied exemption u/s 11 on the ground that it ought to have claimed exemption u/s 10(23C), more so, when it has been granted the benefit of exemption u/s 11 in the past. CIT(E) has given another reason for declining registration, in para 9, that two of the institutions, namely, Doaba College and Kanya Maha Vidayalaya, run by the assessee society, have been declined registration u/s 10(23C)(vi) on the ground that they are not solely established for the purpose of imparting education and are making systematic profits. This finding of the CIT(E) cannot be sustained, since in cases of both the institutions, the ITAT has allowed the exemption u/s 10(23C)(iiiab) by giving a finding of fact that both the institutions are solely engaged for the purpose of education and are not set up for profit making. CIT(E) has given a wrong finding that from the examination of the accounts of the society, it is seen that the society is engaged in providing loans to schools under its aegis, to earn interest income. This finding of the CIT(E) is totally misplaced, as is available from the copy of accounts of interest income filed before us, as before the Authority below, for the past 3 years, which clearly shows that interest has been earned only on FDRs and savings bank account and no interest has been charged on the loans granted to the schools. Order of the ld. CIT(Exemptions) is not sustainable in law. It is, accordingly, reversed. He is directed to grant registration u/s 12AA to the assessee forthwith. - Decided in favour of assessee.
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