SARASWATI EDUCATIONAL & WELFARE SOCIETY Vs. THE INCOME TAX OFFICER
LAWS(IT)-2014-8-36
INCOME TAX APPELLATE TRIBUNAL
Decided on August 08,2014

Saraswati Educational And Welfare Society Appellant
VERSUS
THE INCOME TAX OFFICER Respondents

JUDGEMENT

Sushma Chowla, Member (J) - (1.) THE bunch of appeals filed by the same assessee are directed against the order of the Commissioner of Income Tax (Appeals) Chandigarh dated 28.12.2013 relating to assessment years 2007 -08 to 2010 -11, against the order passed under section 143(3) of the Income Tax Act, 1961 (in short 'the Act').
(2.) THE only issue raised in the bunch of appeals is against denial of exemption under section 10(23C)(iiiad) of the Act. All the four appeals relating to the same assessee on similar issue were heard together and are being disposed of by this consolidated order for the sake of convenience. The facts of all the cases are identical but reference is being made to the facts in ITA No. 223/CHD/2014 for adjudicating the issue. The grounds of appeal as raised in ITA No. 223/CHD/2014 read as under: 1. The order passed by the learned CIT (A) is contrary to law & facts of the case. 2. The learned CIT (A) has erred in law in holding that assessee is not entitled to exemption under section 10(23C)(iiiad) of IT Act 1961. 3. The Learned CIT(A) has erred in law and facts that income of "Sarswati Nursing Institute" being run by "M/S. Sarswati Educational & Welfare Society (Regd.)"is includable in the income of "M/S. Sarswati Educational & Welfare Society (Regd.)" the assessee whereas income of "Saraswati Nursing Institute" of which is exempt under section 10(23C)(iiiad) of IT Act 1961.
(3.) THE learned CIT(A) has erred in law and facts of that surplus as per income over expenditure account amounting to Rs. 5,00,391/ - is taxable income. 4. The brief facts of the case are that the assessee, for the year under consideration had furnished the return of income declaring total income at 'Nil' after claiming exemption under section 10(23C)(iiiad) of the Act. During the course of proceedings, the Assessing Officer noted the aims and objects of the assessee society and also noted the fact that the aims and objects were changed w.e.f. assessment year 2011 -12. The Assessing Officer observed that the aims and objects of the assessee for the year under consideration were not according to the activities of the society and the exemption under section 10(23C)(iiiad) of the Act was claimed wrongly. In reply, the assessee explained that from inception the aim of the society was to carry on educational activity and it had not engaged in any other activity except education and merely because various other objects were contained in the Memorandum, did not establish that the assessee society was not imparting education as per the provisions of section 10(23C)(iiiad) of the Act. The Assessing Officer rejecting the plea of the assessee observed that prior to 2011, the objects of the assessee were not exclusively for education and as the essential condition for exemption under section 10(23C)(iiiad) of the Act. was not fulfilled, the assessee was not entitled to the said exemption. Further disallowances were made on various accounts by the Assessing Officer and the income was computed in the hands of the assessee at Rs. 17,26,705/ -.;


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