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2018 (8) TMI 713 - AT - Income TaxRejection of application for registration u/s 10(23C)(vi) - educational university - non-commencement of activity - examination of of application of funds while considering the application for registration - The assessee is formed in pursuance to Special Act of the Legislative Assembly of Odisha. - Held that:- It is a settled position that while collecting the amount applied towards objects under third proviso to section 10(23C)(vi), both the revenue application as well as application in capital field are to be taken into consideration. Once the entire amount applied during the year is taken into consideration, it cannot be held by any stretch of imagination that the application for educational purposes during the year under consideration was less than 85% of income. We agree that the assessee has not violated the provisions of third proviso to section 10(23C)(vi) of the Act. Thus, we find that apart from surmises, conjectures and erroneous inference of fact, no positive reason could be cited by the learned Pr. CCIT to deny the approval under section 10(23C)(vi) of the Act to the assessee University, which was created by the Special Act of the Legislature solely for the purpose of education. Pr. CCIT directed to grant approval u/s.10(23C)(vi) - Decided in favor of assessee.
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