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2016 (5) TMI 873 - AT - Income TaxDisallowance of exemption claimed U/s 10(23C)(iiiad)/ 10(23C)(iiiab) - Capital Subsidy grant received from State Government of Rajasthan - whether treated as Revenue Receipt and included in calculation of total receipts for calculation of the exemption limit prescribed u/s 10(23C)(iiiad)? - Held that:- It is undisputed fact that the assessee is a charitable institution covered U/s 10(23C)(iiiab) as well as 10(23C)(iiiad) of the Act. The assessee substantially financed by the State Govt., which is also not part of the total receipts as held by the various ITATs as well as Hon'ble High Courts. The actual receipt for the purposes of Section 10(23C)(iiiad) is to be earned out from the educational activity. The case law referred by the assessee are squarely applicable. We have considered view that the capital subsidy received from the State Govt. is not part of total receipts. The assessee wrongly claimed deduction U/s 11 as he did not have registration U/s 12AA of the Act but the ld Assessing Officer has to calculate the real income on the basis of material available with him and is duty bound to assess the correct income as per law.
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