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2017 (3) TMI 1471 - ITAT INDOREDenial of claim of exemption u/s 10(23C)(iiiad) - Held that:- We find that the assessee society is engaged in the running of school and amount of surplus has also been utilized by the assessee for construction of school building, which was also used by the assessee, hence, the society is engaged in the charitable purpose u/s 2(15) of the Act. Since the gross receipts of society is less than ₹ 1 crore, therefore, it is eligible for exemption u/s 10(23C)(iiiad) of the Act. We also find that the facts of the present case are squarely covered by the above decisions discussed above. Therefore, we are of the considered opinion that the lower authorities were not justified in not allowing the deduction to the assessee u/s 10(23C)(iiiad) of the Income-tax Act, 1961. Accordingly, the AO is directed to treat the Society as covered by Section 10(23C)(iiiad) of the Act and allow the relief accordingly. Addition u/s 40(a)(ia)- Held that:- Since, the claim of assessee that the recipient has paid due tax in the light of second proviso to Section 40(a)(ia), we deem fit to restore this issue to the file of the AO for verification and if found correct allow the same as the ratio laid down in the case of Ansal Land Mark Township P.Ltd. [2015 (9) TMI 79 - DELHI HIGH COURT ] Disallowance out of kitchen expenses - Held that:- The assessee has claimed kitchen expenses of ₹ 5,75,486/- out of which ₹ 1,89,000/- were claimed as reimbursement to Imperial Academy and for balance of ₹ 2,86,484/- only ledger copy was filed. On spot inquiry, the Inspector found that no meal was provided to students, considering the genuineness, the AO disallowed ₹ 28,648/- being 10% of expenses of ₹ 2,86,480/- as income for non- education activity.
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