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2023 (4) TMI 571 - AT - Income TaxDisallowance of exemption u/s.10(23C)(iiiad) vide order u/s.154 - Gross Receipts were above Rs.1 Crore during the year and hence exemption is not admissible - AR submitted that disallowance made by the AO u/s.10(23C)(iiiad) by clubbing corpus fund with other receipts is not justified - HELD THAT:- We are of the considered view that corpus fund received by the assessee with specific directions cannot be treated as receipt for the purpose of Sec.10(23C)(iiiad) and therefore, the total receipt of the assessee for the relevant assessment year was below the prescribed limit of Rs.1 Cr. for the purpose of exemption claimed under the provisions of section 10(23C)(iiiad) - Accordingly, the assessee’s Trust was eligible for exemption u/s.10(23C)(iiiad) of the Act, even if no registration u/s.12AA was in existence or granted for the impugned assessment year, wherein receipt of the society working solely for educational purpose was below Rs.1 Cr. As in the present case, after a thoughtful consideration, we are of the opinion that the assessee trust was undeniably entitled for exemption u/s.10(23C)(iiiad) of the Act, for which, the mistake was apparent from the record of the assessee, which were already in possession with the authorities below. They have considered the corpus donation also as receipt of the assessee for the purpose of Sec.10(23C)(iiiad) of the Act, and denied exemption to the assessee. Therefore, we hold the orders of the Revenue authorities as unsustainable - Directing the AO to grant exemption u/s.10(23C)(iiiad) of the Act, to the assessee. Appeal of assessee allowed.
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