Claim of exemption u/s 10(23C)(iiiad) of the Income Tax Act rejected without proper verification: ITAT directs re-adjudication [Read Order]

The Ranchi bench of the Income Tax Appellate Tribunal (ITAT) directed re-adjudication since the claim of exemption under section 10(23C)(iiiad) of the Income Tax Act,1961 was rejected without proper verification.

 M/s Gossner Theological College, the appellant assessee was a society engaged in running a college in the name of Gossner Theological College affiliated to Serampore, Hooghly at West Bengal. The assessee filed its return of income reporting total income as "Nil" after claiming exemption u/s. 10(23C)(iiiad) of the Income Tax Act,1961, but the assessing officer noted that certain receipts and expenditures were not related to the assessee's educational objectives and disallowed the claim and assessed the income thereon.

The Commissioner of the Income Tax ( Appeals) confirmed the decision made by the assessing officer. Thus the assessee appealed against the order passed by the commissioner for granting of the claim of exemption.

Shri P. S. Paul, the counsel for the assessee contended that the receipts in respect of hall rent and accommodation were from the utilisation of the college premises for social functions. It was also submitted that the receipts denote records of the name of the donor as well as their address and cannot be tainted as anonymous donations.

Shri Pranab Kr. Koley appeared for the department and no objection was raised against the contentions submitted by the assessee. The two-member bench comprising of Shri Sonjoy Sarma( Judicial) and Shri Girish Agrawal(Accountant) for the purpose of proper verification of documents and materials placed on record in respect of anonymous donations as well as the explanation for receipt of hall rent and accommodation so as to allow the claim of exemption under section10(23C)(iiiad) of the Income Tax Act,1961 while allowing the appeal filed by the assessee

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