No Rejection of Claim u/s 10(23C) if CIT(E) failed to establish that Assessee Existed for Purposes of Profit

Seth Ramjidas Modi Vidhya Niketan Society Vs CIT (Exemptions) (ITAT Jaipur) The issue under consideration is whether CIT(exemption) is correct in rejecting the claim of the assessee u/s 10(23C) who is mainly engaged in education facilities? In the instant case, AO observed that the Assessee Society is not existing solely for educational purposes. The society advanced huge amounts of funds from year to year to Dr. R.N. Modi Hospital which is a unit of Ram Niwas Modi Charitable Society (“RNMCS” for short). During the year no interest was charged on such advances, whereas the Assessee Society...