TMI Blog2020 (2) TMI 1139X X X X Extracts X X X X X X X X Extracts X X X X ..... ) vide letter dated nil filed before the AO in response to the notice u/s 142(1) which was placed in page No.14 to 21 of the paper book. In Children s Education Society [ 2013 (7) TMI 519 - KARNATAKA HIGH COURT ] considered the similar issue and held that if the receipt of each educational institution does not exceed ₹ 1 crore, the same required to be not to be included in computing the total income of the assessee. In the instant case, there is no dispute that the assessee is running different educational institutions and the receipts of each educational institution does not exceed more than ₹ 1.00 crore as per the details given above. Therefore, we hold that the assessee is entitled for exemption u/s 10(23C)(iiiad) - Deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee was not granted registration u/s 12A. Thus, the assessee is not entitled for exemption u/s 11 of the Act. 4. Aggrieved by the order of the Ld.CIT(A), the assessee filed appeal before this Tribunal. During the appeal hearing, the Ld.AR submitted that the assessee is a society running three different schools at Ravipadu village, Narasaraopet Dist. having independent recognition for each school. The names of the schools are as under : (i) St.Mary s English Medium Elementary School Nursery to UKG (ii) St.Mary s English Medium School Class I to V (iii) St.Mary s English Medium High School Class VI to X Since the assessee is running three different institutions and the receipts of each institution does not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is running three educational institutions, one institution is for the classes of LKG to UKG, one institution is for class I to Class V and one more institution for high school from Class VI to X. All the three different educational institutions are recognized by the Government of Andhra Pradesh vide their proceedings which were placed in page No.25 to 27 of the paper book filed by the assessee. The Regional Joint Director has given recognition for Class VI to X for St.Mary s High School, District Education Officer, Guntur has given recognition for Elementary School and for nursery classes. The receipts of the three institutions are detailed as under : (a) St.Mary s English Medium School - ₹ 31,53,550 (b) St.Mary s English ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... probably, the country would not have achieved in the field of education what it has achieved. Therefore, lot of funds are invested in running these educational institutions, either by creating a Society or a Trust. In course of time, they have expanded their activity providing course in various subjects at various levels and for that purpose they have established more than one educational institution. Each educational institution is a separate entity controlled under various statutes for various purposes. May be the Management of these educational institutions would be in the hands of the Societies or the Trust, but for all other purposes they are different, independent entities. That is the reason why Section 10 (23) (c) is worded as under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and the purpose for which the said provision was inserted, keeping in mind, the Scheme of the Act. Therefore, if an assessee is running several educational institutions, if any of them is wholly or substantially financed by the Government, then the income from such educational institution received by the assessee is not included while computing his total income. Similarly, Income from each educational institution if they are not receiving any aid from the Government wholly or substantially in respect of which the aggregate annual receipt do not exceed ₹ 1 crore received by the assessee, is also not included while computing annual total income of the assessee. In the instant case, there is no dispute that the assessee is runnin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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