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2023 (1) TMI 624 - AT - Income TaxExemption u/s 10(23C)(iiiab) - donations were received have to nexus with admissions of students in institutions, it cannot be treated as “corpus funds” qualifying for exemption - AR submits that the eligibility of an institution for exemption u/s 10(23C)(iiiab) has to be examined as whole, not institution-wise - Whether CIT(A) is justified in holding that the exemption u/s 10(23C)(iiiab) is available to the respondent-assessee as whole or whether there is any evidence of receipt of capitation fees, disentitling the respondent-assessee from exemption u/s 10(23C)(iiiab)? - HELD THAT:- AO gave a finding that the respondent-assessee was not wholly or substantially financed by the Government of India. CIT(A) without adverting the facts of the case, had merely relied upon the legal proposition, granted exemption u/s 10(23C)((iiiab) - CIT(A) without dealing with the issue, whether the respondent-assessee was in receipt of donations having nexus with admissions of students or not, simply held that the donations received by the respondent-assessee form part of the corpus funds. It is pertinent to note that if the donations received had direct nexus with admissions of students in the institutions run by society, such donations does not qualify for exemption as held in the case of Sinhagad Technical Education Society [2022 (4) TMI 1173 - ITAT PUNE] wherein, the Tribunal following the decision of the Hon’ble Supreme Court in the case of Islamic Academy of Education vs. State of Karnataka [2003 (8) TMI 469 - SUPREME COURT] Even recently, the Madras High Court in the case of CIT vs. MAC Public Charitable Trust & Other Trust [2022 (11) TMI 137 - MADRAS HIGH COURT] also held to the same effect. Thus, it is apparent from the order of the ld. CIT(A) that the ld. CIT(A) had decided the issue in appeal in perfunctory manner. In the circumstances, we are of the considered opinion that the interest of justice would be met if the matter is restored to the file of the ld. CIT(A) to decide the issue in appeal afresh after adverting to the facts of the case in the light of legal proposition discussed
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