Exemption u/s 10 (23C)(iiiab) cannot be denied merely on the basis of contradictory statements of few donors

Brief of the case:

The exemption is denied to assessee trust on the basis of statement given before AO in response to summon u/s 131 issued to certain donors as AO was of the view that assessee is not engaged in imparting educational services on charitable purpose but provides admission on capitation basis. After examining the facts and circumstances of the case Hon’ble ITAT observed that Merely because some of the donors stated that they have given the donation for admission will not dis-entitle the society from getting exemption which exists solely for educational purposes and which is otherwise entitled to the exemption.

Facts of the case:

• The assessee is a trust which was set up in the year 1984 and is not registered u/s.12A of the Income-tax Act. It availed exemption u/s.10(22) upto A.Y. 1989-99 and thereafter u/s.10(23C)(iiiab). It has also been granted approval u/s.80G of the Income-tax Act for the purpose of deduction under the section to the donors of the assessee.

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