Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 221 - AT - Income TaxRevision u/s 263 - whether exemption u/s 10(23C)(iiiad) can be granted to any trust, educational institution or university, if the source of income in such a trust is out of educational activity? - HELD THAT:- CIT misconstrued the provision. The source of income can have many springs whereas for eligibility of exemption, the institution should be involved in education only. We find that this aspect has been considered in the case of Swasthya Sewa Sanstha [2022 (2) TMI 868 - ITAT KOLKATA] relied upon for the assessee. In this case, the assessee claimed exemption u/s 10(23C)(iiiae) of the Act i.e., for running a hospital and other medical institution. Action u/s 263 was taken by the ld. Commissioner on the ground that there was no nexus between the income and the expenditure and assessee has not shown receipt from the dispensary. We examine the facts of the present appeal, then it would reveal that the only distinction in the issue involved is that in the case of Swasthya Sewa Sanstha (supra) the assessee had claimed deduction u/s 10(23C)(iiiae) which is meant for any hospital or other institution for treatment of persons suffering from illness or mental defectiveness whereas in the present case, the exemption has been claimed u/s 10(23C)(iiiad) i.e., where an assessee is engaged in education activities. The reasoning and thought process at the end of the Commissioner in taking action u/s 263 is identical. Therefore, the facts of this case are fully applicable upon the assessee and following the order of the ITAT in which one of us i.e. (AM) was a party, we allow the appeal of the assessee and quash the impugned order. Appeal of the assessee is allowed.
|