The ACIT.Circle-12, Ahmedabad V. Gujarat State Tribal Development Residential Education Institute, Gandhinagar

ITA 2902/AHD/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6313 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 24-03-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 09-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R I PATEL
• Assessee Lawyers: M G PATEL
• Keywords: Charitable institution; Benefit of exemption
• Section: 12AA; 144; 10; 11

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ ITA NO.2902/AHD/2013 / ASSTT. YEAR: 2010-2011 ACIT, CIR.12 AHMEDABAD. VS. GUJARAT STATE TRIBAL DEVELOPMENT RESIDENTIAL EDUCATION INSTITUTE 2 ND FLOOR, BIRASA MUNDA BHAVAN SECTOR 10A, GANDHINAGAR. PAN : AAAAT 3689 H / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI M.G. PATEL, AR REVENUE BY : SHRI R.I. PATEL, CIT-DR ! / DATE OF HEARING : 24/03/2017 '#$ ! / DATE OF PRONOUNCEMENT: 06/04/2017 %& / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST TH E ORDER OF LD.CIT(A), GANDHINAGAR DATED 27.9.2013 PASSED FOR T HE ASSTT.YEAR 2010-11. 2. REVENUE HAS TAKEN FOUR GROUNDS OF APPEAL, BUT IT S GRIEVANCE REVOLVES AROUND SINGLE ISSUE VIZ. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.6,13,78,824/- WHICH WAS ADDED BY ITA NO.2902/AHD/2013 2 THE AO BY DENYING BENEFIT UNDER SECTION 10(23)(IIIB ) OF THE INCOME TAX ACT, 1961. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S FILED ITS RETURN OF INCOME ON 15.10.2010 SHOWING NIL INCOME. ACCORDING TO THE AO, HE HAS ISSUED VARIOUS NOTICES TO THE ASSESSEE, BUT IT DID NOT REPLY AND HE WAS FORCED TO PASS ASSESSMENT ORDER UNDER SECTION 1 44 OF THE ACT ON THE BASIS OF HIS BEST JUDGMENT. THE AO FOUND THAT THERE IS A BALANCE OF RS.66,70,78,754/- IN GSFS LIQUID DEPOSIT SCHEME IN THE OPINION OF THE AO, THE ASSESSEE DID NOT GIVE ANY REPLY, THEREFORE, HE CALCULATED INTEREST AT THE RATE OF 8% ON THIS BALANCE AND MADE AN ADDITION OF RS.5,33,63,900/-. HE DISALLOWED CLAIM OF THE ASSES SEE OUT OF MISC. EXPENDITURE, CONTINGENT EXPENDITURE AND SALARY EXPS . HE MADE TOTAL DISALLOWANCE OF RS.80,14,924/-. HE WORKED OUT ADDI TION OF RS.6,13,78,824/-. THE AO DID NOT CONSIDER THE GRAN T OF EXEMPTION UNDER SECTION 10(23)(IIIAB). WRITTEN SUBMISSIONS A S WELL AS FINDING RECORDED BY THE LD.CIT(A) ARE WORTH TO TAKE NOTE. IT READS AS UNDER: 7. THE NEXT TWO GROUNDS OF APPEAL ARE INTER -CONNECTED AND ARE THEREFORE DISCUSSED AND DECIDED TOGETHER. 7.1 THE APPELLANT IN ITS WRITTEN SUBMISSION DA TED 27 'WITH REFERENCE TO ABOVE STATED APPEAL FILED BY THE APPELLANT, GUJARAT STATE TRIBAL DEVELOPMENT RESIDENTIAL EDUCATIONAL IN STITUTIONS SOCIETY (GSTDREIS) AND IN ADDITION TO THE STATEMENT OF FACT S & GROUNDS OF APPEAL, WE HAVE TO GIVE OUR WRITTEN SUBMISSIONS IN THIS REGARD AS UNDER: 1. THE APPELLANT, GSTDREIS SUBMITS THAT IT HAS BEEN CONSTITUTED BY THE GOVERNMENT OF GUJARAT TO ESTABLISH, MAINTAIN , CONTROL AND MANAGE RESIDENTIAL SCHOOLS FOR EDUCATION OF CHILDREN BELON GING TO SCHEDULE TRIBES AND OTHERS RESIDING IN THE PREDOMINANTLY TRI BAL AREAS OF STATE OF GUJARAT. ACCORDINGLY, GSTDREIS WAS ESTABLISHED AS P ER MEMORANDUM OF ASSOCIATION, RULES AND REGULATIONS AND BY-LAWS A ND WAS REGISTERED AS A SOCIETY UNDER THE SOCIETIES REGISTRATION ACT, 186 0 WITH THE ASSISTANT REGISTRAR OF SOCIETIES, AHMEDABAD AT REGISTRATION N O.GUJ/719/ GANDHINAGAR, IT WAS ALSO REGISTERED AS A CHARITABLE TRUST UNDER THE BOMBAY PUBLIC TRUST ACT, 1950 WITH THE DEPUTY CHARI TY COMMISSIONER, AHMEDABAD REGION, AHMEDABAD AT REGISTRATION NO.F/67 6/GANDHINAGAR. ITA NO.2902/AHD/2013 3 THE APPELLANT, GSTDREIS WAS ALSO GRANTED REGISTRATI ON UNDER SECTION 12AA OF THE I.T. ACT, 1961 BY CERTIFICATE IMO.CIT/G NR/12AA/GN. 18/2000-2001 DATED 17.10.2000. COPIES OF THESE CERT IFICATES ARE ENCLOSED HEREWITH. COPY OF MEMORANDUM OF ASSOCIATIO N, RULES AND REGULATIONS AND BY-LAWS IS ALSO ENCLOSED HEREWITH. (PLEASE SEE PAGES NO.22TO44). 2. IT IS SUBMITTED THAT AS PER THE OBJECT OF GSTDRE IS, IT IS RUNNING SCHOOLS FROM PRIMARY UPTO HIGHER SECONDARY LEVEL FO R EDUCATION OF CHILDREN OF SCHEDULE TRIBES AND OTHERS RESIDING IN TRIBAL AREAS OF GUJARAT STATE. THE APPELLANT, GSTDREIS IS ACCORDINGLY RUNNI NG, MAINTAINING AND CONTROLLING 18 EKIAVYA MODEL RESIDENTIAL SCHOOL S (EMRS) FOR 6TH TO 12TH STANDARD, 12 MODEL SCHOOLS (RESIDENTIAL) FOR 6 TH TO 12TH STANDARD AND 36 GIRLS RESIDENTIAL SCHOOLS (EGRS) AS WELL AS 12 OTHER SCHOOLS OF EKIAVYA MODEL SCHOOLS (MS) IN TRIBAL DISTRICTS OF G UJARAT STATE. 3. THE APPELLANT, GSTDREIS SUBMITS THAT AL L THESE EDUCATIONAL INSTITUTIONS (SCHOOLS) ARE RUN IN ACCORDANCE WITH T HE TRIBAL DEVELOPMENT SCHEMES OF GOVT. OF INDIA AND GOVT. OF GUJARAT. AS SUCH, GOVT. OF INDIA AND GOVT. OF GUJARAT PROVIDES GRANTS TO THE APPELLA NT, GSTDREIS FOR MAINTENANCE OF ALL THESE SCHOOLS. FURTHER, IT IS TO BE NOTED THAT ALL THESE SCHOOLS PROVIDE FREE EDUCATION. MOREOVER, STUDENTS ARE ALSO PROVIDED RESIDENTIAL FACILITY, MEALS, STUDY MATERIALS LIKE B OOKS, NOTES ETC. AND UNIFORM FREE OF COST. 4. THE APPELLANT, THEREFORE, STRONGLY CLAIM S THAT, UNDER THE ABOVE STATED FACTS, IT : IS CLEAR THAT THE EDUCATIO NAL INSTITUTIONS (SCHOOLS), ESTABLISHED, MAINTAINED, CONTROLLED AND MANAGED BY GSTDREIS ARE FULLY FINANCED BY GRANTS RECEIVED 'FROM GOVT. OF IN DIA AND GOVT. OF GUJARAT UNDER THEIR TRIBAL DEVELOPMENT SCHEMES, AND THEREFO RE, THE APPELLANT, GSTDREIS SUBMITS THAT IT IS AN EDUCATIONAL INSTITUT ION EXISTING SOLELY FOR EDUCATIONAL PURPOSES AND NOT FOR THE PURPOSES OF PROFIT AND IT IS WHOLLY OR SUBSTANTIALLY FINANCED BY THE GOVERNM ENT, AND HENCE/THE ENTIRE INCOME OF THE APPELLANT, GSTDREIS IS FULLY E XEMPT UNDER THE PROVISIONS OF SECTION 10(23C)(IIIAB) OF THE I.T. AC T, 1961. COPIES OF ACCOUNTS FOR NON-RECURRING GRANT, RECURRING GRANT ( EMRS), RECURRING GRANT (EGRS), NON-RECURRING GRANT UTILIZED FUND ALO NG WITH COPIES OF GRANT LETTERS ARE ENCLOSED HEREWITH. (PLEASE SEE PA GES NO.45 TO 73). 5. THE APPELLANT, GSTDREIS SUBMITS THAT ITS CLAIM FOR EXEMPTION OF ENTIRE INCOME U/S.10(23C)(IIIAB) HAS BEEN CONFIRMED BY FOLLOWING DECISIONS IN CASE OF THE APPELLANT, GSTDREIS ITSELF : (I) ORDER OF ITAT BENCH AHMEDABAD IN ITA NO.2313/AH D/2009 FOR ASST.YEAR 2006-07, (II) ORDER OF THE CIT(A), GANDHINAGAR IN APPEAL NO.CIT(A)/GNR/326/2010-11 FOR ASST. YEAR 2008-09 ITA NO.2902/AHD/2013 4 COPIES OF ABOVE ORDERS ARE ENCLOSED HEREWITH FOR RE ADY REFERENCE. (PLEASE SEE PAGES NO.74 TO 82). 6. AS THE APPELLANT, GSTDREIS WAS ESTABLISHED W.E.F . 17/10/2000, IT HAS FILED ITS RETURN OF INCOME, DECLARING RS.NIL IN COME AFTER CLAIMING BENEFIT OF DEDUCTIONS AVAILABLE U/S.11 OF THE I.T.A CT,1961, AS IT IS DULY REGISTERED U/S 12AA OF THE I.T.ACT,1961. ACCORDINGL Y, FOR THE YEAR UNDER CONSIDERATION I.E. A.Y.2010-11, THE APPELLANT, GSTD REIS HAS FILED ITS RETURN OF INCOME DECLARING 'NIL' INCOME AFTER AVAIL ING BENEFITS OF DEDUCTIONS U/S.11 ALONG WITH COPIES OF AUDITED ACCO UNTS AND AUDIT REPORT. (PLEASE SEE PAGES NO.L TO 21). HOWEVER, IN VIEW OF THE ABOVE, THE APPELLANT, GSTDREIS IS ALSO ENTITLED TO CLAIM E XEMPTION IN RESPECT OF ITS ENTIRE INCOME U/S.10(23C)(IIIAB) OF THE IT. ACT, 1961. 7. THE APPELLANT, GSTDREIS SUBMITS THAT IT WAS REGI STERED AS A SOCIETY/TRUST AS STATED ABOVE, AS A SEPARATE BODY/E NTITY BY THE GOVERNMENT OF GUJARAT FOR IMPLEMENTING TRIBAL DEVEL OPMENT SCHEMES OF GOVT. OF INDIA AND GOVT. OF GUJARAT BY ESTABLISHING EDUCATIONAL INSTITUTIONS/SCHOOLS IN TRIBAL AREAS. FURTHER, THE APPELLANT IS RECEIVING GRANTS FROM THE GOVERNMENT OF GUJARAT AND THE CENTR AL GOVERNMENT FOR THE PURPOSE OF CARRYING OUT ITS OBJECTS OF EDUCATIN G CHILDREN OF SCHEDULE TRIBES AND OTHERS RESIDING IN TRIBAL AREAS OF 'GUJA RAT STATE. IT CAN BE SEEN THAT SUCH GRANTS FROM THE STATE AND CENTRAL GO VERNMENTS CONSTITUTES VERY SUBSTANTIAL PART OF THE FUNDS OF T HE APPELLANT. THEREFORE, IT IS ABSOLUTELY CLEAR THAT THE APPELLANT IS WHOLLY OR SUBSTANTIALLY FINANCED BY THE GOVERNMENT. (PLEASE SEE PAGES NO.45 TO 73). 8. THE APPELLANT, THEREFORE, SUBMITS THAT IN VIEW OF ABOVE FACTS, IT IS CLEAR THAT THE APPELLANT IS AN EDUCATIONAL INSTITUT ION EXISTING SOLELY FOR EDUCATION PURPOSES AND IT IS ALSO WHOLLY OR SUBSTAN TIALLY FINANCED BY THE GOVERNMENT. FURTHER, THE APPELLANT BEING INSTITUTIO N FUNCTIONING UNDER THE CONTROL AND SUPERVISION OF THE GOVERNMENT OF GU JARAT, IT IS BUT OBVIOUS THAT IT IS NOT AT ALL FUNCTIONING FOR THE P URPOSES OF PROFIT. THEREFORE, IT IS SUBMITTED THAT THE APPELLANT IS DI RECTLY COVERED UNDER THE PROVISIONS OF SECTION 10(23C)(IIIAB) OF THE INCOME TAX ACT,1961 AND INCOME OF THE APPELLANT IS WHOLLY EXEMPT U/S 10(23C )(IIIAB) OF THE INCOME TAX ACT,1961. 9. THE APPELLANT GSTDREIS SUBMITS THAT THOU GH ITS ENTIRE INCOME IS ELIGIBLE TO BE FULLY EXEMPT U/S 10(23C)(IIIAB) O F THE I.T. ACT,1961, AS EXPLAINED EARLIER ABOVE, THE APPELLANT IS FILING IT S RETURNS OF INCOME CLAIMING BENEFIT OF DEDUCTION U/S 11 OF THE I.T. AC T, 1961 AS IT IS DULY REGISTERED U/S 12AA OF THE I.T. ACT, 1961 AND THE A PPELLANT HAS ALSO FILED ITS RETURN OF INCOME FOR A.Y.2010-11 ACCORDINGLY. 10. THE APPELLANT SUBMITS THAT CONSIDERING TH E ABOVE STATED FACTS OF THE CASE AS WELL AS SUBMISSIONS IN THAT REGARD, THE BENEFIT OF EXEMPTION U/S 10(23C)(IIIAB) WAS VALIDLY AND RIGHTLY ALLOWABL E TO THE APPELLANT. ITA NO.2902/AHD/2013 5 HOWEVER, THE SAME HAS NOT BEEN ALLOWED IN THE ASSES SMENT ORDER WITHOUT CALLING FOR ANY FURTHER INFORMATION OR EXPL ANATIONS FROM THE APPELLANT BEFORE FINALIZING THE ASSESSMENT. THE APP ELLANT HAS THEREFORE, SUBMITTED ADDITIONAL GROUND OF APPEAL IN THAT RESPE CT TO CLAIM BENEFIT OF EXEMPTION U/S 10(23C)(IIIAB) OF THE I.T. ACT,1961 W HICH WAS LEGALLY, VALIDLY AND RIGHTLY ALLOWABLE TO THE APPELLANT GSTD REIS AND IT IS REQUESTED THAT SUCH CLAIM FOR EXEMPTION MAY KINDLY BE ALLOWED TO THE APPELLANT. IN THIS RESPECT, THE APPELLANT PLACES RE LIANCE ON THE FOLLOWING JUDGMENTS : (I) SMT.RAJRANIGULATIV.CIT [249CTR 51 (ALL)] (II) CIT VS. JAI PARABOILIC SPRINGS LTD.[306 ITR 42 (DEL)] (III) CIT VS. RAMCO INTERNATIONAL [ 17 DTR 2 14 (P & H)] (IV) JUTE CORPN. OF INDIA LTD. V. CIT [187 ITR 6 68 (SC)] (V) CHOKSHI METAL REFINARY V. CIT [107 ITR 63 ( GUJ)] (VI) CIT V.SAYAJI MILLS LTD. [ 94 I TR 26 (GUJ)] (VII) UNION COAL CO. LTD. V. CIT [ 70 ITR 45 (CAL)] (VIII) CHICAGO PNEUMATIC INDIA LTD. VS. DCIT [15 SO T 252 (MUM)] (IX) JCITVS. HERO HONDA FINLEASE LTD.[6 DTR 467 (DE L)(TM)] (X) M EMERSON NETWORK POWER INDIA (P) LTD. VS. ACIT [122 TTJ 67 (MUM)] 11. THE APPELLANT HAS TO SUBMIT FURTHER THAT TAKIN G INTO CONSIDERATION CBDT CIRCULAR NO.14 (XI-35) OF 1955 DATED 11/04/195 5, THE LEGITIMATE BENEFIT OF DEDUCTIONS AND EXEMPTIONS, EVEN THOUGH T HE SAME MAY NOT HAVE BEEN CLAIMED BY THE APPELLANT SHOULD BE ALLOWE D TO THE APPELLANT. ACCORDINGLY, BENEFIT OF EXEMPTION OF INCOME U/S 10( 23C)(IIIAB) OF THE INCOME TAX ACT, 1961, SHOULD BE ALLOWED TO THE APPE LLANT. COPY OF THE RELEVANT PORTION FROM PAGE NOS.1434-35 OF INCOME TA X LAW BY CHATURVEDI & PITHISARIA REGARDING THIS CIRCULAR IS ENCLOSED. (PLEASE SEE PAGES NO.83 AND 84). YOUR HONOUR IS, THEREFORE, REQUESTED THAT CONSIDERI NG THE FACTS AND CIRCUMSTANCES OF THE CASE AS WELL AS ABOVE SUBMISSI ONS, ASSESSMENT MADE BY THE LD. ASSESSING OFFICER MAY KINDLY BE QUA SHED AND INCOME OF THE APPELLANT BE HELD AS FULLY EXEMPT U/S 10(23C )(IIIAB) OF THE I.T. ACT, 1961. ' 7.2 I HAVE GONE THROUGH THE ASSESSMENT ORDER, THE F ACTS OF THE CASE AND THE CONTENTIONS OF THE APPELLANT. FROM THE DETAILS FILED BEFORE ME I FIND THAT THE CONTENTION OF THE APPELLANT IS THAT IT IS ELIGIBLE FOR EXEMPTION U/S. 20(23)(IIB) ON THE INCOME EARNED WHICH HAS BEEN DEN IED BY THE AO. I FIND THAT MY PREDECESSORS ON IDENTICAL FACTS HAVE D ISCUSSED THE ISSUE AT LENGTH IN THE EARLIER YEARS' ORDERS DATED 18/5/2009 FOR AY 2006-07 AND AGAIN IN ORDER DATED 30/7/2012 FOR AY 2008-09, WHER EIN IT WAS HELD THAT THE APPELLANT'S CASE IS COVERED BY THE CONDITIONS L AID DOWN IN SECTION 10(23)(IIIB) OF THE ACT AND THEREFORE, THE INCOME I F ANY, IS CONSEQUENTIALLY ITA NO.2902/AHD/2013 6 EXEMPT. THE ISSUE HAS ALSO BEEN SETTLED BY THE HON' BLE ITAT, W BENCH, AHMEDABAD IN FAVOUR OF THE APPELLANT BY DISMISSING THE APPEAL OF THE REVENUE VIDE ITS ORDER DATED 25/11/2011 IN ITA NO.2 313/AHD/2009 WHEREIN IT WAS OBSERVED AND HELD THAT THE APPELLANT IS RUNNING EDUCATIONAL INSTITUTIONS LIKE SCHOOLS, ETC. IMPARTI NG FORMAL EDUCATION AS PRESCRIBED UNDER THE ACT. THE APPELLANT HAS DULY BE EN GRANTED REGISTRATION U/S. 12AA OF THE IT ACT. THEREFORE, ON MERITS ALSO THE APPELLANT IS HELD TO BE ELIGIBLE FOR DEDUCTION U/S. 11 & 12 OF THE IT ACT. IN VIEW OF THE JUDICIAL PRONOUNCEMENT BY THE HON'BLE I TAT (SUPRA) IN APPELLANT'S OWN CASE AND THE DECISION TAKEN BY MY P REDECESSORS, I FIND NO REASON TO DIFFER FROM THE DECISION-TAKEN BY THEM AFTER ELABORATE DISCUSSION AND THE AO IS DIRECTED TO ALLOW THE CLAI M OF THE APPELLANT, ACCORDINGLY. HENCE, THE APPEAL OF THE APPELLANT IS ALLOWED. 4. THE LD.DR RELIED UPON THE ORDER OF THE AO. ON T HE OTHER HAND, THE LD.COUNSEL FOR THE ASSESSEE BROUGHT TO OUR NOTI CE ORDER OF THE ITAT PASSED IN THE ASSTT.YEAR 2006-07 WHICH IS AVAILABLE ON PAGE NO.74 OF THE PAPER BOOK, AND SUBMITTED THAT ISSUE IN DISPUTE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE. HE TOOK US THROUGH PARA GRAPH-6 AND 7 OF THE TRIBUNALS ORDER, WHICH READS AS UNDER: 6. THE LD. A.R. FORCIBLY SUBMITTED THAT THE ASSESS EE IS A 100% GOVERNMENT ORGANIZATION IMPARTING EDUCATION TO THE TRIBALS IN THE REGION, AS PER THE DIRECTIONS OF THE CENTRAL GOVERN MENT FROM WHOM THE GRANTS ARE RECEIVED. THE LD. A.R. FURTHER SUBMITTED ONE VOLUMINOUS PAPER BOOK RUNNING FROM 1 TO 220 PAGES W HICH CONTAIN THE FOLLOWING DOCUMENTS: 1. CERTIFICATES OF REGN. AS SOCIETY ARID TRUST AND MEMORANDUM OF ASSOCIATION 2. FIRST TWO GRANT ORDERS OF GOVT. OF INDIA 3. ADITANAR EDUCATIONAL INSTN. V. ADDL. CIT 224 ITR 0310 [1997] SC 4. REGISTRATION CERTIFICATES OF EKIAVYA MODEL RESID ENTIAL SCHOOLS (EMRS) WITH DISTT. EDUCATION OFFICERS AND STATE EDU CATION BOARD 5. SAURASHTRA EDUCATION FOUNDATION V. CIT 273 ITR 0 139 [2005] GUJ 6. YEARWISE / STANDARDWISE POSITION OF STUDENTS (KU MAR / KANYA) FROM 2000-2001 TO 2008-2009 7. DETAILS OF OWNED / RENTED / IN GOVT. MODEL SCHOO LS FOR 2005- 2006 8. DETAILS OF SCHOOLWISE EXPENDITURE FOR FINANCIAL YEAR 2005-2006 9. DETAILS OF ACADEMIC STAFF FOR VARIOUS SCHOOLS 10. APPOINTMENT LETTERS TO ACADEMIC STAFF 11. GRANT ORDERS - GOVT. OF GUJARAT TO GSTDREIS ITA NO.2902/AHD/2013 7 12. GRANT ORDER - GOVT. OF INDIA TO GOVT. OF GUJARA T 13. GRANT ORDERS - GOVT. OF INDIA TO GOVT. OF GUJAR AT 14. GUIDELINES FOR ADMISSION ISSUED BY GSTDREIS TO EMRS PRINCIPALS AND ADVERTISEMENT FOR ADMISSION 15. SCHOOL REGISTER ISSUED BY GUJARAT SECONDARY AND HIGHER SECONDARY EDUCATION BOARD, EXAMINATION WING, VADODA RA FOR 02 SCHOOLS 16. DELEGATION OF POWERS TO OFFICIALS AND PRINCIPAL S OF EMRS 17. COMMUNICATION FROM GSTDREIS TO PRINCIPALS OF EM RS 18. PHOTOGRAPHS OF STUDY TOURS AND SPORTS MEET OF E MRS 19. MINUTES OF MEETING OF 04.10.2005 AT GSTDREIS WI TH PRINCIPALS OF EMRS FOR EXAMINATION RESULTS, ETC. 20. SUBMISSION OF MEMBER SECRETARY GSTDREIS TO ACIT , GANDHINAGAR CIRCLE, GANDHINAGAR CLAIMING EXEMPTION U/S. 10(23C)(IIIAB) OF THE INCOME-TAX ACT, 1961 21. ACKNOWLEDGEMENT NO. 2307000527 DATED 22.12.2006 AND ANNUAL INCOME-TAX RETURN OF GSTDREIS FOR AY 2006-20 07 6.1 THE LD. A.R. FURTHER SUBMITTED THAT ALL THE DOC UMENTS WERE FURNISHED BEFORE THE LD. CIT(A) WHO HAS PASSED REAS ONABLE ORDER, AFTER OBTAINING A REMAND REPORT FROM THE A.O, THERE FORE, IT WAS PRAYED THAT THE ORDER OF THE LD. CIT(A) MAY BE UPHE LD. 7. WE HAVE HEARD RIVAL SUBMISSIONS AND CAREFULLY PE RUSED THE MATERIALS PRODUCED BEFORE US. AFTER PERUSING THE PA PER BOOK, IT IS EVIDENT THAT THE ASSESSEE IS RUNNING EDUCATIONAL IN STITUTIONS SUCH AS SCHOOLS, ETC. IMPARTING FORMAL EDUCATION, AS PRE SCRIBED UNDER THE ACT. THE LD. CIT(A) HAD ELABORATELY DEALT WITH THE MATTER AFTER PERUSING VARIOUS DOCUMENTS SUBMITTED BY THE ASSESSE E AND AFTER OBTAINING REMAND REPORT HAD COME TO THE ABOVE-MENTI ONED CONCLUSION CITED (SUPRA). THE REVENUE DID NOT COME OUT WITH ANY CONVINCING ARGUMENT OR EVIDENCE AGAINST THE DOCUMEN TS PRODUCED BY THE ASSESSEE BEFORE US. IN THESE CIRCUMSTANCES, WE HAVE NO OTHER OPTION BUT TO CONFIRM THE ORDER OF THE LD. CI T(A). IT IS ORDERED ACCORDINGLY. 5. WITH THE ASSISTANCE OF THE LD.REPRESENTATIVES, W E HAVE GONE THROUGH THE RECORD. SECTION 10 CONTEMPLATES THAT I N COMPUTING THE TOTAL INCOME OF PREVIOUS YEAR OF ANY PERSON, ANY IN COME FALLING WITHIN ANY OF THE FOLLOWING CLAUSES SHALL NOT BE INCLUDED. WE ARE CONCERNED WITH INCOME PROVIDED UNDER CLAUSE, 10(23)(C)(IIIAB) WHICH READS . ANY INCOME RECEIVED BY ANY PERSON ON BEHALF OF .ANY U NIVERSITY OR OTHER EDUCATIONAL INSTITUTION EXISTING SOLELY FOR EDUCATI ONAL PURPOSES AND NOT FOR PURPOSES OF PROFIT, AND WHICH IS WHOLLY OR SUBS TANTIALLY FINANCED BY ITA NO.2902/AHD/2013 8 THE GOVERNMENT.. IN THE ORDER FOR THE ASSTT.YEAR 2006-07, THE TRIBUNAL HAS OBSERVED THAT THE ASSESSEE IS A HUNDRE D PERCENT GOVERNMENT INSTITUTION IMPARTING EDUCATION IN TRIBA L REGIONS, AS PER THE DIRECTIONS OF THE CENTRAL GOVERNMENT FROM WHOM GRAN TS ARE RECEIVED. IN ORDER TO SUBSTANTIATE THIS CLAIM, THE ASSESSEE H AS MADE REFERENCE TO A LARGE NUMBER OF DOCUMENTS WHICH HAS BEEN REFERRED BY THE TRIBUNAL IN ITS ORDER DATED 25.11.2011 (EXTRACTED SUPRA). T HE LD.CIT(A) HAS EXAMINED THESE ASPECTS IN THE LIGHT OF THIS ORDER A ND OBSERVED THAT THE ASSESSEE IS ENTITLED TO EXEMPTION PROVIDED IN SECTI ON 10(23C)(IIIAB). THE QUESTION BEFORE US IS WHAT IS THE MATERIAL COLL ECTED BY THE AO IN THIS ASSESSMENT TO DENY THIS BENEFIT TO THE ASSESSE E. A PERUSAL OF THE ASSESSMENT ORDER WOULD INDICATE THAT HE HAS NOT MAD E REFERENCE TO ANY CIRCUMSTANCES OR DOCUMENTS. SIMILARLY, THE DEPARTM ENT HAS MERELY FILED APPEAL FOR THE SAKE OF FILING, OTHERWISE IT H AS ALSO NOT PLACED ANY DOCUMENT ON RECORD WHICH CAN SUGGEST THAT THE ASSES SEE DOES NOT FULFILL CRITERION CONTEMPLATED IN SECTION 10(23C)(IIIAB). IN VIEW OF THE ABOVE DISCUSSION, WE DO NOT FIND ANY MERIT IN THE APPEAL OF THE DEPARTMENT. IT IS DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 6 TH ____APRIL, 2017. SD/- SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER