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2017 (4) TMI 339 - AT - Income TaxReopening of assessment - denial of exemption under section 10(23C)(iiiad) - proof of educational purposes of school - Held that:- Neither of the Authorities below, nor the ld. DR before us has been able to repudiate the assessee’s categorical assertion that no religious education has ever been imparted by the assessee school right from since its inception and that the assessee school is affiliated with the Punjab School Education Board (In short, ‘PSEB’), and it is imparting education only on the pattern of the PSEB, which pattern is a recognized pattern in India and is the pattern prescribed by the State Govt. in Punjab. The existence of the assessee solely for educational purposes has been elaborated and confirmed by us in the preceding paras. So far as regards the receipts of the assessee, firstly, neither of the Authorities below has raised any objection with regard to the receipts of the assessee being less than the prescribed limit of ₹ 1 crore. For the A.Y. 2007-08, the receipts of the assessee, as per the Income & Expenditure Account for the year ending 31.03.2007, amounted to ₹ 52,01,115.28, i.e., much below the prescribed limited of ₹ 1 crore. The above apart, it is patent on record that in the case of Arya Shiksha Mandal, the governing body of the assessee school, in scrutiny assessment, vide order dated 29.11.2012 (APB 2007-08 Pg 12 – 13), the status as well as the nature of service of the Mandal was accepted as that of a charitable educational society. From the above discussion, it is evident that both the reasons recorded by the AO for reopening the completed assessments of the assessee are based on factual errors, rendering the notice issued u/s 147, finding its basis in the aforesaid reasons, to be an invalid notice - Decided in favour of assessee
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