TMI Blog2018 (11) TMI 1496X X X X Extracts X X X X X X X X Extracts X X X X ..... person on behalf of the institutions specifying the requirements of the said clause. The exemption is not relatable to the individual institution run under the common umbrella of a Trust. Therefore, if the assessee trust satisfies the statutory requirement noted above, the exemption provision would apply, irrespective of the fact that in isolated cases of a few institutions runs by such Trust, the requirement may not be seen to have been fulfilled. From the above, it is very clear that it is the trust or the society that has to apply for registration and claim exemption. Had it been the intention of the legislature to grant exemption only to the institutions individually or independently and not to the society as a whole, the language ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . For the said assessment year 2008-09 in the return filed, the assessee claimed exemption under Section 10(23C)(iiiab) of the Income Tax Act, 1961 ( the Act for short ). The assessing officer examined the audited accounts of the assessee in detail. In so far as the institutions which were receiving grants from the Government and those which did not receive such grants but whose total receipts were less than Rs. One Crore, the assessing officer did not disturb the assessee's claim of exemption. However, the assessing officer noticed that there were three educational institutions run by the assessee which did not receive grant from the Government and whose total receipts exceeded Rs. One Crore during the relevant period. He was of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perused the material on record, in our opinion, the central question is whether the exemption under Section 10(23C)(iiiab) is specific to the assessee trust or whether such exemption can be examined by further bifurcating the position of different institutions which are run by the assessee trust. The Revenue's ground that the assessee trust did not exist solely for the purpose of educational activity, needs to be recorded for rejection. It is by now well settled through various series of judgments of the Supreme Court that an educational institution is not precluded from generating reasonable surplus. Merely because, in the process of running an educational institution, the surplus funds are generated, would not disqualify the instituti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
