INCOME TAX ACT, 1961

Section 10(23C)(iii)

Exemption under section 10(23)(iii) - Educational institution - Assessee existed solely for educational activities - Eligibility of

Assessee-society filed its return of income declaring nil income after claiming exemption under section 10(23). Subsequently, the case was selected for scrutiny and notice under section 143(2) was issued to assessee. As there was no proper representation/compliance from assessee, AO completed the assessment under section 144 and denied the exemption claimed by assessee. CIT(A) upheld the order of AO. Held: CIT(A) had rejected the contention of assessee on the ground that assessee had multiple objectives other than solely educational activities in the object clause. In case, an assessee has multiple objectives, but, carried on only educational activities, then, AO could allow the benefit. During the relevant assessment year, assessee had carried on only educational activities and had not carried on any other activities. Every year, when the claim was made, AO was required to verify whether for that previous year, assessee existed solely for educational activities. Therefore, assessee was eligible to claim exemption under section 10(23)(iiiad).

Followed:CIT v. Geetha Bhavan Trust (1995) 213 ITR 296 (Kerala) : 1995 TaxPub(DT) 0683 (Ker-HC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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