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2020 (5) TMI 532 - AT - Income TaxExemption u/s 10(23C)(vi) denied - assessee trust is running two educational institutions namely, Umalok Paramedical College and Umalok Nursing School and trust has not been granted registration u/s 12AA - HELD THAT:- Expenditure involved in conduct of the camps and distribution of medicines, food and cloth forms and an integral part of conducting of field camps by the assessee trust in imparting the education. They are directly and also integrally connected with the type of education imparted by the assessee trust. We are unable to accept with the finding of the ld. CIT (A). We have also gone through the observation of the ld. CIT (A) that the assessee trust has given various interest free advances to the trustees and find that the assessee has given only an indemnity bond but not any loans to the trustees as per the record before us. Hence, it can be held that the assessee is found to be solely in the activity of education and no other activities have been undertaken by the assessee during the year. The prescribed limit for Section 10(23)(iiiad) is less than ₹ 1 crore. Hence, keeping in view that the annual receipt of the education institute is less than ₹ 1 crore, the education institute is solely involved in the educational activity and since the objects clause of the trust during the year under consideration is to carry the educational activities and keeping in view that no other material contra has been brought by the revenue. We hereby hold that the assessee is eligible for deduction u/s 10(23C) of the Act. - Decided in favour of assessee.
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