Case Law Details
Gossner Theological College Vs ITO (ITAT Kolkata)
ITAT Kolkata remanded the matter back to AO for the purpose of 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 u/s. 10(23C)(iiiad) of the Act.
Facts- The assessee was a society engaged in running a college in the name of Gossner Theological College affiliated to Serampore, Hooghly at West Bengal. IT filed its return of income reporting total income as “Nil” after claiming exemption u/s. 10(23C)(iiiad) of the Income Tax Act,1961. In the course of assessment, on examination of the income expenditure statement, AO noted that certain receipts as well as certain expenditure are not related to educational objectives of the assessee. AO thus diallowed the claim of assessee u/s. 10(23C)(iiiad) and assessed the income thereon.
Aggrieved, assessee went in appeal before CIT(A), who partly allowed the appeal of the assessee. Being aggrieved, the present appeal is filed.
Conclusion-We find it proper to remit the matter back to the file of ld. AO for the purpose of 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 u/s. 10(23C)(iiiad) of the Act. Assessee is directed to furnish all the relevant details and documents to substantiate its claim of exemption before the Ld. AO in respect of the above stated three components of the receipts. Ld. AO on verification and due satisfaction may consider the claim of the assessee in accordance with the provisions of law. Accordingly, grounds taken by the assessee allowed for statistical purposes.
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