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2019 (4) TMI 1579 - AT - Income TaxClaim of exemption u/s 10(23) - assessee is an educational society and is constituted with multiple objectives to carry on its operations - HELD THAT:- We find that the CIT(A) has rejected the contention of the assessee on the ground that the assessee has multiple objectives other than solely educational activities in the object clause. The tax authorities should apply the provisions of the Act as the Legislature intended to develop the educational activities and promote those institutions, which have functions solely for education and not for profit. In case, an assessee has multiple objectives, but, carried on only educational activities, then, the assessing authorities can allow the benefit. In the given case, facts are very clear that during the relevant AY, the assessee has carried on only educational activities and has not carried on any other activities. U/s 10(23)(iiiad), it is not a case of registration and the allowability of the claim thereafter without verification of facts. Every year, when the claim is made, AO is required to verify whether for that PY, the assessee existed solely for educational activities. Therefore, assessee is eligible to claim exemption u/s 10(23)(iiiad) for the relevant AY before us. Accordingly, the addition made by the AO is hereby deleted and the grounds raised by the assessee on this count are allowed. Also see GEETHA BHAVAN TRUST [1994 (11) TMI 71 - KERALA HIGH COURT], very much relevant for this case.
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