Decided on September 24,2007

Queens' Educational Society Respondents


- (1.)BOTH these appeals, preferred by revenue under Section 260A of the Income -tax Act, 1961, involve a common question of law based on common set of facts and, therefore, are being decided by one and common judgment. Appeal No. 103 of 2007 is directed against the consolidated judgment dated 7 -7 -2006 of the Income -tax Appellate Tribunal, Delhi Bench 'B', New Delhi (for short, 'the ITAT') passed in ITA Nos. 2191 and 2189 (Delhi) of 2004 pertaining to assessment years 2000 -01 and 2001 -02, whereas Appeal No. 104 of 2007 has been preferred by the revenue against the judgment dated 7 -7 -2006 passed by the ITAT in Appeal No. 2190 (Delhi) of 2004 pertaining to assessment year 2001 -02.
(2.)FACTS , in brief, are that the assessees are the educational societies registered under the Societies Registration Act and have been imparting education to the children. In the relevant assessment years assessees in both the appeals claimed exemption under Section 10(23C)(iiiad), which provides that the income received by the educational societies which exist solely for educational purposes and not for the purpose of profit shall not be subjected to tax. With the returns of the assessees, the statement of account for the relevant assessment years i.e., 2000 -01 and 2001 -02, showed the net surplus at Rs. 6,58,862 and Rs. 7,82,632 respectively in ITA Nos. 2191 and 2189 and in another case of St. Pauls Sr. Secondary School, the statement of profit is contained in the chart which indicates surplus, investment in fixed assets and net surplus and the same is reproduced as under: F.Y. Gross Receipts Surplus Investment Net Surplusin fixedassets2001 -02 1,15,72,753 97,313.56 11,41,275.76 -10,43,962.202000 -01 96,49,062 7,12,704.80 10,40,501.92 -32,797.121999 -2000 64,05,334 13,29,531.54 8,00,908.40 5,28,623.141998 -99 61,96,745 7,58,397.20 5,89,670.90 1,68,726.301997 -98 52,10,985 5,85,764.56 5,80,858.21 4,906.35
The Assessing Officer assessed both the assessees rejecting the exemption as claimed, against which appeals of the assessees were allowed by the CIT (Appeals). Then the revenue filed appeals before the ITAT, which were dismissed.

(3.)THE ITAT having rejected the contentions of revenue in this regard, the Department has come up in appeal before us.

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