9911796707
TMI Blog2013 (1) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... the interest on fixed deposits formed part of the annual income of the school and the aggregate of the annual income of the school and the interest on fixed deposits having exceeded rupees one crore, the exemption was not eligible according to the provisions of section 10(23C)(iiiad) of the Income Tax Act, 1961. 2. That the lower authorities had erred in not appreciating that the annual incomes of the school were recurring, regular and progressive whereas the interest on fixed deposits fluctuated widely from year to year and as such the interest income did not form part of the annual income of the school. 3. (i) The lower authorities had erred in not appreciating that the annual income of the school has not been de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annual income of the school has been held to be exempt in the entire history of the school except for the assessment year 2006-07. The orders of the lower authorities being arbitrary, erroneous, and illegal, it deserves to be modified. The same may kindly be modified. 2. The brief facts of the case are that the appellant society is running a school whose activities are supervised by a Receiver appointed by the Hon'ble High Court. The appellant filed nil income return on 11.9.2006 claiming whole of the income over the expenditure amounting to Rs. 45,58,427/- as exempt u/s 10(23C)(iiiad) of the Income Tax Act, 1961 . The case of the assessee was reopened by the Assessing Officer on perusal of P&L A/c wherein annual receipts of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Aggrieved, the assessee filed appeal before Ld. CIT(A) and submitted that all receipts do not constitute aggregate annual receipts and it is only those receipts which pertain to providing of education and which have an element of recurrence and regularities can be regarded as annual receipts. Other receipts such as donation, grant, receipt of capital nature, interest and rent etc. cannot be treated as annual receipts. The assessee relied upon the meaning of the term gross receipts used in section 44AB given in the guidance notes issued by ICAI and tried to distinguish it by the word annual receipts. The Ld AR submitted that in the section 10(23C)(iiiad) the word annual has been written instead of gross receipts. The Ld AR further submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal is dismissed." 5. Aggrieved the assessee filed appeal before this Tribunal. 6. At the outset, Ld. AR argued that assessee was required to take approval only once and it was not required to obtain approval again and again unless it is rejected. In this respect he took us to page 3 of order of CCIT relating to assessment year 2007-08 wherein it was provided that on or after 1.12.2006, the approval u/s 10(23C) (vi) of section 10(23C) would be one time approval which would be valid till it is withdrawn. Therefore, he argued that approval was valid for 2006-07 also. The Ld AR also relied upon written synopsis already filed which read as under:- "That annual receipts of school were less than Rs. One crore and it exceeded Rs. one crore on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r obtained by the assessee and as referred to by the Ld AR relate to assessment year 2007-08 and it is not retrospective order and it is not applicable for assessment year 2006-07. Ld DR further relied upon the order of Assessing Officer and Ld CIT(A). 8. We have heard the rival submissions of both the parties and have gone through the material available on record including detailed synopsis. We find that society is running the school under the management of receiver appointed by Hon'ble High Court. For the entire years the income of the school was exempt and for the assessment year 2007-08, the assessee had obtained prior approval of CCIT, Panchkulla for exemption u/s 10(23)(vi). The receipts of the assessee during assessment year 2006-07 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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