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2016 (7) TMI 956 - AT - Income TaxEntitlement to benefit under section 10(23C)(iiiab) denied - Held that:- It is not in dispute that assessee solely exists for educational purposes. Therefore, assessee is entitled for deduction/exemption under section 10(23C)(iiiab) of the Act. Further, the ld. CIT(Appeals) found that assessee's total receipts were of ₹ 1.48 Cr out of which 95% grant-in-aid was ₹ 40,01,416/-, vocational course grant was ₹ 9 lacs. Grant-in-aid received from the government and from UGC would not constitute the receipts of educational institution. Further, donations are meant for specific purposes i.e. for building purposes and other donations were also specific towards the corpus of the assessee. Therefore, grant-in-aid given by the Punjab Government towards payment of salary could not be constituted as part of the receipts of the assessee. Similarly, receipts from UGC for running vocational course would not be receipt of the assessee. Donations are meant for specific building purposes, therefore, ld. CIT(Appeals) was justified in holding that these are not receipts of the assessee educational institution. When these amounts are reduced from the total receipts of the assessee, the total receipts from educational institution would be less than ₹ 1 Crore. Therefore, assessee would be entitled for deduction/exemption under section 10(23C)(iiiad) of the Income Tax Act. - Decided in favour of assessee.
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