RAJASTHAN STATE TEXT BOOK BOARD,JAIPUR vs. ASSISTANT COMMISSIONER OF INCOME TAX (EXEMPTION)-CIRCLE, JAIPUR

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Jh jes’k lh0 ’kekZ] ys[kk lnL; ,oa Jh fot; iky jko] U;kf;d lnL; ds le{k BEFORE: SHRI RAMESH. C. SHARMA, AM & SHRI VIJAY PAL RAO, JM vk;dj vihy la-@ITA No. 252 & 253/JP/2019 fu/kZkj.k o"kZ@Assessment Year : 2013-14 & 2014-15 cuke Rajasthan State Text Book Board, The ACIT(Exemption), Vs. 2-2A, Jhalana Doongri, Circle, Jaipur. Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAAAR 6050 Q vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri Vinod Gupta (C.A.) jktLo dh vksj ls@ Revenue by : Shri Varinder Mehta (CIT) lquokbZ dh rkjh[k@ Date of Hearing : 28/03/2019 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 10/04/2019 vkns'k@ ORDER

PER: VIJAY PAL RAO, J.M. These two appeals by the assessee are directed against two separate orders of ld. CIT (A), Jaipur both dated 11.02.2019 for the assessment years 2013-14 & 2014-15 respectively. The assessee has raised common grounds in these appeals and the grounds raised for the assessment year 2013-14 are as under:- “1. Impugned assessment order passed U/s 143(3) is bad in law and on facts being against the principal of natural justice and for

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

many more other reasons. Hence, the action of ld. AO as well as CIT(A) is against law. 2. Under the facts and in the circumstances of the case and in law, Ld. AO as well as Ld. CIT(A) have erred in:- a) not considering the submission of the appellant assessee in right perspective b) denying exemption under section 10(23C)(iiiab) based on incorrect assumption of facts and law. 3. Under the facts and circumstances, Ld AO has erred in making addition of Rs. 40,00,21,090/-. Further, Ld. CIT(A) has erred in confirming the addition. 4. That the appellant craves your indulgence to add, amend or alter all or any grounds of appeal before or at the time of hearing.”

denial of exemption U/s 10(23C)(iiiab) of the Act. The assessee is

society registered under the Rajasthan Society Act, 1958. The assessee

society was set up by the Government of Rajasthan as an autonomous

body and registered on 29.12.1973. The pre dominant objects of the

assessee society inter alia “to prepare, edit, publish, print, stock, sell

distribute, or otherwise deal in textbooks, supplementary books,

reference books, extra reading material, workbooks and exercise books

for pupils and teaching aids, teacher’s hand books, and curriculum

(hereinafter referred to as the education literature) useful for

furtherance of teaching and learning in institutions meant for Lower and

higher primary education. To prepare edit, print, publish, stock, sell 2

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

and distribute or enter into any arrangement for preparing, editing,

printing, publishing, stocking, distribution and sale of textbooks

approved or assigned by the Government of Rajasthan or other

appropriate authority appointed by the Board and any other educational

literature which the Board may decide to publish, with a view to making

the same available at a price, fixed at not profit no loss basis.” The

assessee society is managed, governed and control by the Government

of Rajasthan through the governing Board as appointed by the

Government. Initially the assessee society was claiming exemption U/s

10(22) of the Act till the provisions were amended e.w.f. 01.04.1999

whereby the said Section 10(22) was omitted and a new provisions of

Section 10(23C) was inserted in the statute. After 01.04.1999 the

assessee has been claiming exemption U/s 10(23C)(iiiab) of the Act. For

the years under consideration, the assessee filed its return of income

declaring total income at nil after claiming the benefit of Section

10(23C)(iiiab) of the Act. The AO noted that the assessee society has

shown surplus of Rs. 40,00,21,086/- and claimed as exempt income U/s

10(23C)(iiiab) of the Act. The AO has questioned the allowability of the

exemption on the ground that the institution existing solely for

educational purpose is eligible for exemption U/s 10(23C)(iiiab) of the

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

Act and not for the purpose of profit and further the institution which is

wholly and substantially financed by the Government is eligible for the

benefit under the said provisions. Accordingly, the AO issued a show

cause notice to the assessee and in reply the assessee furnished the

necessary details and claimed that the assessee is existing solely for the

educational purpose as its object are mainly to prepare edit, publish,

print, stock, sell distribute, or otherwise deal in text books free of cost

to the Government schools as well as on discount rate to the private

distributor for private schools. The entire receipt is against the supply of

school books as per the NCERT curriculum. Further, the Government of

Rajasthan has financed 100% capital of the assessee society in the year

1974 and thereafter the assessee started sell generated surplus without

collecting the money from any person except the amount received from

the Government on account of textbooks supplied free of cost to the

students of government schools and private schools on discount rate.

The assessee has not received any deposit, aid or grant from any other

person or institution. Thus, the assessee claimed it cannot be said that

it is not wholly and substantially financed by the Government. The AO

was not impressed with the reply of the assessee and held that the

assessee has not fulfilled third contention laid down U/s 10(23C)(iiiab)

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

of the Act i.e. wholly or substantially financed by the Government.

Accordingly, the AO denied the exemption U/s 10(23C)(iiiab) of the Act

for both the assessment years. On appeal, though the assessee has

advanced elaborated submissions and contentions however, the ld.

CIT(A) has held that the exemption U/s 10(23C)(iiiab) of the Act is

eligible only to the university or other educational institution existing

solely for educational purposes and not for the purpose of profit and

which is wholly or substantially financed by the Government. But the

assessee is earning huge profit from the activity of preparing, printing

and distributing the textbooks and has accumulated the reserve and

profit to the tune of Rs. 206.51 crore. The assessee received only

contribution of Rs. 78,292/- from the Government and all other

accumulation has been made by the assessee from the income

generated on the activity. Thus, the ld. CIT(A) has held that the

assessee is not existed solely for the purpose of education but it is for

earning the profit. Further, the assessee has not received any aid or

fund from the Government therefore, it was held that the assessee is

not substantially financed by the Government. Accordingly, the ld.

CIT(A) has confirmed the denial of exemption U/s 10(23C)(iiiab) of the

Act.

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assessee institution performed its function as a Government

Department, state of Rajasthan and continued to do so till the State

Government in the year 1973, decided to frame and constitute a society

under the Rajasthan Society Registration Act, 1958 to run the same.

Inspite of change of its format the assessee society continued existence

and functioning to be run and operated by the State Government as an

instrumentality of the Government of Rajasthan. Thus, the assessee

society is regarded as state within the meaning of Article 12. The ld. AR

has referred to the composition of the Board of the assessee society

and submitted that it has been managed and controlled by the

Government of Rajasthan. He has also referred to the memorandum of

association of the assessee and submitted that no amendment can be

made without the consent of the Government, as evident from Clause

(viii) and (ix). The president of the assessee society is the education

Minister of Rajasthan in the capacity of ex-officio. Similarly the

Secretary education, Government of Rajasthan is the ex-officio vice-

president and other government authorities/bureaucrats are ex-officio

members of the board of the society. Therefore, the entire board is

constituted by the officials of the Government of Rajasthan being ex-

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officio or members which are nominated by the Government. Therefore,

the assessee society is fully under the control and management of

Government to pursue its objects. The ld. AR has referred to the

memorandum of association and objects as per clause III of the

memorandum of association and submitted that all the objects of the

society are to carry out work and activities relating to the publication of

nationalized books, teachers hands books and curriculum meant for

lower and higher education. The main object of the assessee society is

to prepare edit, publish, print, stock, sell, distribute, or otherwise deal in

textbooks, supplementary books, reference books, extra reading

material for the students and teaching aids the useful for furtherance

teaching and learning in institutions meant for lower and higher primary

education. Thus, the assessee society which has taken over the work of

the nationalized board of textbooks is solely existed for education and

under the direction and control of Government of Rajasthan. In the

state of Rajasthan education upto senior secondary is regulated and

administered by the Education Department, Government of Rajasthan.

The assessee being an educational institution is one of the element

assisting Education Department in achieving its object or implementing

its role in education in general of the State. The ld. AR has further

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submitted that prior to the omission of Section 10(22) of the Act w.e. f.

01.04.1999 the assessee had been claiming the exemption U/s 10(22)

of the Act which was allowed since inception of the assessee society till

the provision was omitted. Thereafter, the assessee has been claiming

the exemption U/s 10(23C)(iiiab) of the Act and the Department has

been consistently allowing the same except for the years under

consideration. Thus, the status of the assessee society being

educational institution existing solely for educational purposes and not

for purposes of profit was accepted by the department for last more

than 45 years. As per Article 21A of the Constitution of India the State

has provided free and compulsory education to all children in the age

group of 6 to 14 years as a fundamental right in such a manner as the

state may by law, determine. Accordingly, the books published by the

assessee is provided to government school on the basis of requisition

raised from time to time by the Directorate of Primary Education and

Directorate of Secondary Education under free of cost distribution of

books to Government schools students scheme of State Government.

The assessee is acting to implement the policy of Statement

Government through Education Department, Government of Rajasthan.

Thus, the activities carried out by the assessee are in furtherance of the

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objects of the assessee-society in general and particularly Clause

III(28)(b) of the Memorandum of Association wherein it is specifically

stated that implementing any scheme approved by the Government of

Rajasthan for free supply of books & recover in whole or in part the

cost of the books from the authority concerned. The ld. AR has further

submitted that the issue whether the assessee is an educational

institution existed solely for education and not for the purpose of profit

within the meaning of Section 10(22) was considered and decided by

this Tribunal in the appeals for the assessment years 1986-87, 1987-88

and 1988-89 in ITA No. 1716 to 1718/JP/1991. The said decision was

challenged by the Revenue before the Hon’ble High Court and was

upheld vide decision reported in 244 ITR 667. Thus, the ld. AR of the

assessee has submitted that when there is no change in the facts and

activity of the assessee for the year under consideration then, the

assessee-society cannot be treated as not an educational institution

existing solely for education. The finding of the ld. CIT(A) is contrary to

the decision of this Tribunal as well as of Hon’ble High Court in

assessee’s own case. An identical issue was again considered by the

Hon’ble Supreme Court in case of Assam State Text Books

Production & Publication Corporation Ltd. vs. CIT 319 ITR 317

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and the Hon’ble Supreme Court has upheld the decision of the Hon’ble

jurisdictional High Court in the case of the assessee. Thus, the ld. AR

has submitted that so far as, the assessee being an educational

institution existed solely for education and not for the profit has been

settled by the Hon’ble High Court as well as Hon’ble Supreme Court.

Government as per the provisions of Section 10(23C)(iiiab) of the Act

the ld. AR has submitted that initially the assessee used to supply

textbooks entirely to the government schools under the scheme of free

of cost however, over the time the private educational institutions have

taken the significant number of students the assessee has started

supplying the textbooks to the private distributors at the same

discounted rate at which the government is making the payment to the

assessee-society. Even otherwise when more than 60% of the total

supply is made to the Government school students under the scheme of

free of cost supply of the textbooks by the Government then the finance

of the assessee-society is substantially made by the State Government.

The ld. AR has submitted that initially the entire fund was contributed

by the State Government and thereafter the assessee has been

generating the Revenue and surplus from the activity of education and

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the said Revenue received substantially from the Government was

transferred to the surplus reserve which presents the finance from the

Government. Hence, the ld. AR has submitted that the fund received by

the assessee society against free supply of text books shall be

considered as financed by the Government. In support of his

contention, he has relied upon the decision of Indore Benches of the

Tribunal dated 25.04.2012 in case of M.P. Rajya pathya Pustak

Nigam vs. DCIT in ITA No. 375 to 394/Ind/2011 and submitted

that an identical issue has been considered by the Tribunal and decided

in favour of the assessee. The ld. AR has also relied upon the decision

of Hon’ble Patna High Court in case of Bihar State Tex Book

Publishing Corporation 241 CTR 403. Thus, the ld. AR has

submitted that there are series of decisions on this issue in respect of

the textbooks societies of various states carrying out an identical

activity. Hence, the claim of exemption U/s 10(23C)(iiiab) of the Act be

allowed and the addition made by the AO may be deleted.

requirement for availing the exemption U/s 10(23C)(iiiab) of the Act is

that an institution should be an educational institution existed solely for

education and wholly or substantially financed by the Government. The

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assessee does not fulfill any of the conditions as prescribed U/s

10(23C)(iiiab) of the Act as neither the assessee is an educational

institution existed solely for educational nor it is wholly or substantially

financed by the Government. The activity of publishing the textbooks

and selling the same at a margin which is substantially high in the

comparison to the normal business activity clearly established the fact

that the assessee does not exist solely for education and not for profit

making. The ld. CIT(A) has analyzed the facts and found that the

assessee has been consistently earning the profit from the activity of

publishing and selling of textbook. Secondly the assessee has

accumulated a huge fund of Rs. 206.51 Crore whereas the Government

has initially provided the funds of Rs. 78,292/-. The amount received by

the assessee against the sale of books cannot be considered as

financed by the Government but it is the Revenue generated by the

assessee from the activity. Moreover, the assessee is selling the books

to the private parties and therefore, is not eligible for exemption U/s

10(23C)(iiiab) of the Act being the activity of business. He has relied

upon the orders of the authorities below.

material on record. There is no dispute that the assessee-society was

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set up by the Government of Rajasthan as an autonomous body and

registered under the Rajasthan Society Registration Act, 1958 on

29.12.1973. The assessee-society came into existence as a result of

order of Government of Rajasthan whereby then the nationalization

Board of textbooks Rajasthan Government Department was converted

into autonomous body registered under Rajasthan Societies Act on

31.12.1973. As per the said order Government of Rajasthan,

Department of Education a governing council of the Board was directed

to be constituted as under:-

(A) Ex-officio Member

(B) Government Nominee

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Therefore, it is clear that the governing council of the assessee-society

is comprising of all Government Officials and headed by Education

Minister as Ex-officio, President and Education Secretary as Vice-

president which means that the assessee-society has been managed

and controlled by the Governing council comprising of all the

Government officials as well as nomination made by the Government.

The objects of the assessee-society as enumerated in Clause-III of the

Memorandum of Association, are reproduced as under:-

"(1) To acquire and take over the work and activities of the Nationalization Board of Textbook, a Government of Rajasthan Department, relating to publication of Nationalised books, teacher's handbooks, and curriculum meant for Lower and Higher Primary Education, together with all its assets, rights, privileges and liabilities as the Government of Rajasthan may transfer to the Board and to carry on such business and activities and to exercise such powers, perform such duties and carry out such directions as may from time to time be given by the Government of Rajasthan, and to promote the advancement of education in general and Lower and Higher Primary Education in particular;

(2) To prepare, edit, publish, print, stock, sell, distribute, or otherwise deal in textbooks, supplementary books, reference books, extra reading material, workbooks and exercise books for

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pupils and teaching aids, teacher's hand books, and curriculum (hereinafter referred to as educational literature) useful for furtherance of teaching and learning in institutions meant for Lower and Higher Primary Education;

(3) To prepare, edit, print, publish, stock, sell and distribute or enter into any arrangement for preparing, editing, printing, publishing, stocking, distribution and sale of textbooks approved or assigned by the Govt. of Rajasthan or other appropriate authority appointed by the Board and any other educational literature which the Board may decide to publish, with a view to making the same available at a price, fixed at no profit no loss basis.

(4) To undertake and promote research for the preparation, evaluation and production of school textbooks and other educational literature intended for Lower and Higher Primary stages of education;

(a) To impart or to assist in imparting education and provide necessary aid and incentive in the school and other educational institutions, established and maintained by R.S.TB. or Panchayati Raj Institutions or the Government of Rajasthan as the case may be, in order to facilitate all round development of the children in the state.

(5) To assess utility of educational literature produced by the Board or any other agency;

(6) To promote research for improvement of curriculum and recommend the findings to the Government of Rajasthan or other appropriate authorities for modification of curricula for Lower & Higher Primary stages of education;

(7) To establish and maintain libraries to facilitate research in the field of curricula, syllabi and textbooks and the preparation and production of text books and other educational literature; 15

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(8) To carry on business as publishers, printers, sellers and distributors of text book and other educational literature suited to the requirements of the curriculum approved by the government of Rajasthan, without any commercial, profiteering or trading motive;

(9) To enter into agreement with writers, editors, artists, photographers, publishers and other rights in respect of their books, publications, writings, articles, dramas, essays, poems, artwork, or photographs and to obtain purchases or otherwise acquire copyright and rights of publication, reproduction and the like;

(10) To use ensign for the publications of the Board and for the purpose to apply for, takeout, purchase or otherwise acquire any ensign, copyrights, designs or other process which may seem useful for the Board;

(11) To regulate and fix prices of the publications of the Board consistent with its objects;

(12) To receive donations, grants, loans, advances or other moneys or deposits or otherwise from the Central government or any State Government or Banks or other financial institutions with or without allowance of interest thereon; ( the Board shall not accept loans, grants, or donations to which conditions and obligations against the objectives of the Board are attached);

(13) To own, establish, purchase, exchange, acquire by gift, take on lease, hire or otherwise howsoever any lands, buildings, easement rights in common and any properly movable or immovable including a printing Press or any estate or interest for the furtherance of all or any of the objects of the Board;

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(14) To construct, maintain, repair, extend , improve or develop any buildings, warehouses or works necessary or convenient for the purposes of the Board;

(15) To borrow and raise money on security in the form of mortgage, charge, hypothecation or pledge over all or any of the immovable or movable properties belonging to the Board or in any other manner whatsoever and to sell, lease, exchange, sublet, transfer, or dispose of all or any property wholly or in part, movable or immovable of the Board, ( The Board will not raise money as aforesaid, in lieu of the property, loans or advances received from State or Central Government except with the specific consent of the respective Government)

(16) To create any depreciation fund, reserve fund, sinking fund or any other special funds, whether for depreciation or repairs or replacement, improvement, extension or maintenance of the property of the Board or for any other purpose conducive to the interest of the Board out of its receipts, howsoever from donations, loans, advance, sale of books or otherwise;

(17) To invest in such securities as the Board may determine from time to time and to deal with the funds of the Board;

(18) To draw, make, accept, endorse and negotiate cheques, hundies, promissory notes or other negotiable instruments;

(19) To appoint, suspend, or dismiss any agent or person engaged in the distribution of the publications of the Board and to allow trade discount to any such agent or person at such rate as deemed fit by the Board;

(20) To appoint, commission or contract any agency or person for writing, illustrating , printing, binding, block making or other allied jobs of books production, supply of paper and transportation on 17

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such rates as approved or offered by the Board and to penalize, debar, dismiss the agency or person so engaged in the manner deemed fit by the Board;

(21)For the purpose aforesaid, to sign, execute and deliver such assurance, agreements and deeds as may be necessary;

(22) To pay out of the funds belonging to the Board or out of any particular part of such funds, all expenses of or incidental to the formation of the Board and management and administration of the Board including all rents, rates, taxes, outgoing, and the salaries, allowances, advances, contributions, gratuities, honoraria and bonuses of the employees;

(23) To regulate the recruitment and conditions of service of the officers and servants of the Board subject to the rules of the Board;

(24) To establish and maintain or procure the establishment and maintenance of any contributory or non-contributory Provident fund and/or pension on superannuation, gratuities, allowances or emoluments to any person or persons who are or were at any time in the employment or services of the Board or who are or were at any time officers of the Board and the widows and families of any such persons and also establish, subsidise and subscribe to any institutions, associations, clubs or funds, calculated by the Board to be for the benefit of or to advance the interest of the well- being of the employees of the Board or towards insurance of any such persons as aforesaid and deal with any such other association as aforesaid. To pay the leave salary and pension contribution of government servants drafted to the Board.

(25) To provide for the welfare of employees or Ex-employees of the Board and their wives and families by building or contributing to the houses or dwellings or by grant-in aid such as for marriage and medical expenses and religious celebrations, by allowing 18

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bonus or loans and by providing or contributing towards clubs, co- operatives, medical and other assistances as the Board may deem fit;

(26) To adopt such means for making know the publication and activities of the Board as may seem expedient, and in particular by advertisement, publicity and mass communication media, and to maintain effective public relations,;

(27) To receive, for the fulfillment of its objects, assistance of Central or State Government, and academic and such other institutions whose objectives, wholly or in part, are similar to the objectives of the Board,

(28) To undertake on agency basis or otherwise the following functions for or on behalf of the Government of Rajasthan or the Government of India:-

(a) Stocking, utilization and accounting for the gift paper received from the Government of India or the Government of Rajasthan;

(b) Implementing any scheme approved by the Government of Rajasthan for free supply books & recover in whole or in part the cost of the books from the authority concerned;

(c) Utilizing the funds given by the Government of Rajasthan, Central Government or other institutions for schemes of publication of amenities of educational interest, teaching aids reference books, and the like.

(29) To do and execute, in general, such lawful acts, deeds, matters and things as are conducive or incidental to or for the attainment of the aforesaid objects or any of them.”

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Thus, the pre-dominant objects of the assessee-society are to take over

the functioning of erstwhile nationalization Board of Textbooks

Government of Rajasthan Department which includes mainly to prepare,

edit, publish, print, stock, sell, distribute the textbooks, reference

books, or reading material on the curriculum of lower and higher

primary/secondary education in the State of Rajasthan. Initially the

assessee was distributing the textbooks in the Government schools free

of cost however, due to more participation of private school in the

education, the assessee has started supplying/distribution of the books

in the private schools also. As regards the books distributed free of cost

to the students in the Government schools, the Government of

Rajasthan is compensating the assessee through budget allocation

under Education Department. The assessee has been functioning under

the direct control and instructions of the directorate of primary and

secondary education Government of Rajasthan. Therefore, in order to

implement the scheme approved by the Government for free supplying

of books the assessee has been distributed the books free of cost to the

students in the Government Schools and the cost of the books are

recovered in whole or part from the Government. The assessee

charging the same price in respect of the books supplied to the

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

students of private schools. Therefore, there is no discrimination as far

as the cost recovered by the assessee in respect of the books supplied

to the students of Government school as well as private school. The

textbooks as per curriculum prepared by the NCERT are being printed

by the assessee-society as per approval of the NCERT. Right from the

creation of the assessee it has been claiming exemption U/s 10(22) of

the Act till the said provisions were amended w.e.f. 01.04.1994 and

substituted by a new provisions U/s 10(23C)(iiiab) of the Act. Therefore,

so far as the objects of the assessee-society and the existence of the

assessee-society solely for education and not for the purpose of profit

the same was accepted by the Department for all these years from

1973 till 1999 except for the assessment years 1986-87 to 1988-89

when the said issue was carried to this Tribunal and thereafter before

the Hon’ble High Court by the Revenue. The decision of this Tribunal

deciding the issue in favour of the assessee by holding that the

assessee is an educational institution existing solely for education and

not for the purpose of profit within the meaning of Section 10(22) of

the Act was upheld by the Hon’ble High Court reported in 244 ITR 667

(Raj.). For the sake of completion we reproduce the decision of this

Tribunal dated 26.10.1998 in case of ACIT Vs. Rajasthan State Text

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Book Board in ITA No. 1716 to 1718/JP/1991 has held in para 5 as

under:-

“5. We have heard the rival submissions and considered them carefully. We have also perused the material on which our attention was drawn. After perusing the order of the CIT(A), we do not see any infirmity in the order of the CIT(A). The CIT(A) has discussed all the facts of the case and also discussed the other cases laws and then he came to conclusion that the assessee is entitled to exemption under section 10(22). The observations and findings of the CIT(A) as mentioned in page 3 of his order are “As the basic objection about exemption available u/s 10(22) goes to the very root of the validity or otherwise of the impugned assessment, it would be fair and reasonable, if the same is taken into consideration with a view to find out the worth thereof. After going through the objects of the Memorandum of Association of the Tamil Nadu Text Books Society, it is seen that the objects of the appellant, as per the Memorandum of Association stands on the same footing for all practical purposes as that of the Tamil Nadu Text Books Society. The nature of work of both these are practically the same and in the case of Tamil Nadu Text Books Society. Certain reference was made by the concerned to the CBDT and as per letter dated 19.08.1975 and F. No. 184/26/15. ITAT conveyed as under:- “On a careful consideration of the facts involved the Board is of the opinion that the Tamil Nadu Text Book Society would be an educational institution existing solely for the purpose of education within the meaning of section 10(22) of the I.T. Act.” If the above communication is taken into account, vis-à-vis the objects of the appellant society and the Tamil Nadu Text Books Society which are practically the same, it appears that exemption u/s 10(22) was available to the appellant as well and there was 22

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no justification in rejecting the claim of the appellant so far as the exemption u/s 10(22) is concerned. A reference may also be made to the findings of the Orissa High Court as reported in 86 ITR 416 in the case of Secondary Board of Education vs. ITO, as under:- “Under the Act the Board has a fund. There are various sources of income constituting the funds. One of the sources of income is earning profits by compliation, publication, printing and sale of text books. The profits so earned entered into the Board fund. The income and expenditure of the Board is controlled and the entire expenditure is to be directed towards development and expansion of educational purpose. Even if there is some surplus, it is not appropriated by others but remains as a part of the sinking fund to be devoted to the cause of education as and when necessary. This being the objective and there being various ways of control of the income and expenditure, the Board of Secondary Education cannot be said to be existing for purposes of profits. It exists solely for purposes of education. The income of the Board cannot, therefore, be computed in the total income of the previous year under section 10(22) of the Income-tax Act, 1961. If the above findings are also taken into account and the communication given by the CBDT in the case referred to earlier is considered, vis-a-vis the facts of the case of the appellant which are practically on the same footing, it appears that the appellant was entitled for exemption u/s 10(22). In view of this, the basic objection so raised by the appellant in regard to availability of exemption u/s 10(22) of the IT Act, 1961 deserves to succeed and accordingly the concerned authority is directed to allow the said exemption. Since the exemption u/s 10(22) was available to the appellant, there appears to be no justification in subjecting the surplus etc. to tax and completing the assessment. As such, assessment so completed appear to be bad in lw and stands cancelled. 23

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From the above observation and findings of the CIT(A) it is clear that the assessee is entitled to exemption under section 10(22) because in case of Tamil Nadu Text Book Society to whom the exemption under section 10(22) is allowed by the revnue, the aims and objects of the assessee is similar to Tamil Nadu Text Books Society. Therefore, there is no point to decline the exemption to the assessee. 5.1 The contention of the ld. D/R that assessee is printing books and selling thereof cannot be treated as educational institution. The assessee is earning profit out of sale of books. It was further stated that if the exemption is granted liks that then buswalla who runs buses for school will come for exemption under section 10(22). Therefore, the exemption should not be granted in such type of cases. These contentions of the ld. D/R have no weight because the appeal of the assessee was allowed after following the decision in the case of Tamil Nadu Text Books Society and facts in case of Tamil Nadu Text Books Society are similar to the facts of the present case. The D/R was not able to distinguish the facts of the case of Tamil Nadu Text Books Society or the facts of the present assessee. The exemption in case of Tamil Nadu Text Books Society was allowed by the Tribunal and the decision of the Tribunal is not reversed till date. Therefore, there is no point to differ with the decision in case of Tamil Nadu Text Books Society. We have also seen other case laws relied upon by the ld. DR and fact of those cases are different, whereas facts in those cases on which reliance was placed by the ld. A/R are similar to the facts of the assessee’s case. Therefore, in view of all these facts and circumstances, we uphold that finding of the CIT(A) and appeals of the department for all the three years, therefore, dismissed.”

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

The said decision of the Tribunal was upheld by the Hon’ble

Jurisdictional High Court in case of ACIT vs. Rajasthan Text Book Board

(supra) in para 1 to 3 as under:-

“Heard the learned counsel for the appellants in these appeals. These three appeals are directed against the common order dt. 26th Oct., 1998, made by the Tribunal, Jaipur Bench, Jaipur, in ITA No. 1716/Jp/1991. Since the order covers different assessment orders, three separate appeals are filed. But, the facts and questions of law that arise for consideration, are the same in these three appeals. The question that came up for consideration before the CIT(A) and the Tribunal, was whether the Rajasthan State Text Book Board, Jalana Doongri, Jaipur, was entitled for exemption under s. 10(22) of the IT Act, (hereinafter called, "the Act"). Though the assessing authority took the view that the respondent-assessee was not entitled for exemption under s. 10(22) of the Act, the CIT(A) did not agree with the order of the assessing authority and reversed the same. In the appeal, filed by the Department, before the Tribunal, the Tribunal concurred with the order, passed by the CIT(A).

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

the Orissa High Court, in the case of Board of Secondary Education vs. ITO (1972) 86 ITR 408 (Ori) : TC 32R.757 dealing with similar facts.

Hence, the appeals are rejected.”

Therefore, the Hon’ble High Court has upheld the findings of the

Tribunal that the assessee-society is an educational institution existing

solely for the purpose of education within the meaning of Section

10(22) of the Act and further it was also found that the surplus if any of

the assessee-society was not used for any purpose or distributed to

other members. Therefore, to the extent of the assessee being

educational institution existing solely for education and not for the

purpose of profit was settled long back and was also accepted by the

Department till the provisions of Section 10(22) of the Act was omitted

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

from the statute books and new provisions of Section 10(23C)(iiiab) of

the Act was inserted. The Assessing Officer while passing the

assessment orders for these two assessment years has also not

disputed the status of the assessee being educational institution existing

solely for educational purpose but the AO had denied the exemption U/s

10(23C)(iiiab) of the Act on the ground that the assessee has not

fulfilled the condition that it is wholly and substantially financed by the

Government during the year under consideration. The relevant part of

the Assessing Officer as under:- “You have not fulfilled 3rd condition laid down in section 10(23C)(iiiab) of the I.T. Act, 1961. You have also accepted the facts in your reply filed on 09.02.2016 wherein it is clearly stated that “the assessee (Rajasthan State Text Book Board) has not financed by the Government during the year under consideration.” Therefore, you are not entitled to claim exemption of income u/s 10(23C)(iiiab) of the I.T. Act, 1961. In view of above, you are required to explain as to why the claim of exemption of income u/s 10(23C)(iiiab) of the I.T. Act, 1961 should not be denied for computing of total taxable income and assessment shall be completed by treating you as AOP and surplus of Rs. 40,00,21,086/- shall be taxed accordingly except the other additions made during assessment.”

The ld. CIT(A) while passing the impugned order has apart from

confirming the order of the Assessing Officer also held that the assessee

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

is not existing solely for education purpose but is doing commercial

activity. The relevant findings of the ld. CIT(A) has held as under:-

“I perused the record I find that the appellant has claimed exemption U/s 10(23C)(iiiab). As per this section exemption is available to any university or other education institution existing solely for education purpose and not for the purpose of profit and which is wholly or substantially financed by the Government. In the present case as evidence from the financial statement, the appellant is earning huge profit as evident from the following table:- A.Y. Turnover Profit % of profit 2012-13 2290977602 57564539 25% 2013-14 1879652330 400021086 21%

From the above table it can be noted that the percentage of profit earned is more than the normal profit which itself shows that this is existing for earning profit. This is more evident from Balance Sheet that it is having capital contribution of Rs.78292/- only whereas accumulated profit earned is Rs.2 06,51,32,282/-. It is further seen that no finance is received from the government during the year or in last more than 20 years. The contribution of the Government is only Rs.78292/- which is also in the year of setup long back. The Hon'ble Supreme Court in the case of Visvesvarya Technological University in Civil Appeal No. 4361-4366 & 2016 where facts and considerations were "that within a short period of a decade from the year 1999 to 2010 the appellant university had generated a surplus of Rs. 500 Crores". There is no doubt that the huge surplus has been collected/accumulated by realizing fees under different heads in consonance with the powers vested in the university u/s 23 of the VTU Act. The difference fee collected and the actual expenditure 28

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

incurred for the purpose for which fess were collected is significant. In fact the expenditure incurred represents only miniscule part of the fees collected. No remission, rebate or concession in the amount of fees charged under the different heads for the next academic year(s) has been granted to the students. The surplus generated is far in excess of what has been held by this court to be permissible (6 to 15%) in "Islamic Academy of Education and Anr. V/s State of Karnataka & Anr. (2003) 6 SCC 697 ''was in the context of the reasonable fees to be charged private educational bodies.This case is totally applicable in this case that court have given the finding that “Universities and Educational Institutions entitled to exemption ,under the Act have been categorized under three different heads, namely, those covered by Section 10(23C)(iiiab); Section 10(23C)(iiiad) and 10(23C)(vi) of the Act. The requirement of the University or the educational institution existing "solely for educational purposes and not for, purposes of profit" is the consistent requirement under Section 10(23C)(iiiab), 10(23C)(iiiad) and 10(23C)(vi). However, in cases of Universities covered by Section 10(23C)(iiiab) funding must be wholly or substantially by the Government whereas in cases of universities covered by Section 10(23C)(iiiad) the aggregate annual receipts should not exceed the amount as may be prescribed. Universities covered by Section 10(23C)(vi) axe those other than mentioned in sub-clause (iiiab) or sub- clause (iiiad) and, which are required to be specifically approved by trie prescribed authority." In this case as stated supra no such regular/ substantial financial grant in made by Govt. Thus the assessee does not fulfil the basis condition of exemption u/s 10(23)(iiib). It is further seen that to clarify this an explanation has been inserted w.e.f. 1/04/2015 that an institution can be said to be substantially financed by Govt. if it received 50% of the receipt from Govt grants. 29

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In this case the appellant is not existing solely for educational purposes but he is doing the commercial activity. On perusal of balance sheet and profit and loss account it is find that appellant is selling the books to book Seller and doing the commercial activity with moto to earn the profit. Thus the appellant violative the provision of Section 10(23C) (iiiab) of the I.T. Act. Considering this amendment and the facts of the case, I am of the view that the assessee does not fulfil the condition referred in section 10(23C)(iiiab) regarding not for the purpose of profit and substantially financed by Govt. Accordingly the claim of the assessee disallowed by the Assessing Officer is confirmed and the Assessing Officer rightly completed assessment by treating the appellant as AOP and the surplus of Rs. 40,00,21,090/- is rightly taxed by the Assessing officer. These grounds are not allowed.”

Therefore, as far as the finding of the ld. CIT(A) that the assessee is

not existing solely for education purpose but is doing commercial

activity the issue is covered by the earlier decision of this Tribunal as

well as the decision of Hon’ble Jurisdictional High Court. Hence, the said

finding of the ld. CIT(A) is contrary to the binding precedent and

therefore is not sustainable. Even otherwise there are series of

decisions on this point which includes the decision of Hon’ble Madras

High Court in case of DCIT vs. Tamil Nadu Text Book Corporation

in ITA No. 1519 to 1521/Mds/2008 dated 27.07.2012 as well as decision

of Hon’ble Supreme Court in case of Assam State Text Book

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

Production & Publication Corporation Ltd. vs. CIT 319 ITR 317.

The Hon’ble Supreme Court while considering the question whether the

Assam State Text Book Production and Publication Corporation Ltd.

could be termed as educational institution in terms of Section 10(22)

has held in para 4 to 6 as under:-

“4. In these appeals, we are concerned with asst. yrs. 1981-82 to 1996-97, except asst. yr. 1989-90. The question which arose before the AO was whether the Corporation could be termed as an ‘educational institution’ in terms of s. 10(22) of the 1961 Act ? According to the AO, since the assessee, during the relevant years, had income exclusively from publication and selling of text books to the students, exemption under s. 10(22) of the IT Act, 1961 (for short, "the Act"), as it stood at the material time, was not admissible. According to the AO, the assessee did not exist solely for educational purposes, particularly in view of cl. 21 of the memorandum of association which provides for distribution of dividends, hence, its income was not exempt under s. 10(22) of the Act. This decision of the AO was upheld by CIT(A). In the Tribunal, there was difference of opinion between Member (Judicial) and Member (Accountant). By decision of the majority [reported as The Assam State Textbook Production and Publication Corpn. Ltd. vs. Dy. CIT (2003) 81 TTJ (Gau)(TM) 10— Ed.], it was held that the Corporation was an educational institution and, consequently, the Corporation was entitled to the benefit of exemption under s. 10(22) of the Act for the relevant assessment years in question. However, in appeal filed by the Department, the High Court came to the conclusion that the income of the Corporation, during the relevant assessment years, was not exempt, particularly in view of the fact that the assessee did not exist solely for educational purposes; that it did not solely 31

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impart education and that its income during the relevant assessment years was only from publishing and sale of text books, which, according to the High Court, constituted a profit- earning activity. Against the said decision, the assessee has come to this Court by way of civil appeals.

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

that case on behalf of the Revenue was that the assessee was making profit on account of publishing and sale of text books and, consequently, it was not entitled to the benefit of exemption under s. 10(22) of the Act. However, the High Court noticed the letter issued by CBDT on 19th Aug., 1975 in the case of Tamilnadu Text Book Society which, as stated above, in similar circumstances had granted exemption to the Tamilnadu Text Book Society as an educational institution within the meaning of s. 10(22) of the Act. The judgment of the High Court further recites that, under a similar situation, the CBDT had also extended benefit of exemption under s. 10(22) of the Act to the Orissa Secondary Board Education, as reported in Secondary Board of Education vs. ITO (1972) 86 ITR 408 (Ori). Following these circulars/letters issued by CBDT, the Rajasthan High Court came to the conclusion that the assessee in that case, namely, Rajasthan State Text Book Board (supra), was entitled to claim the benefit of exemption under s. 10(22) of the Act. The operative part of the Rajasthan High Court’s judgment reads as under :

"It is not disputed before us that the aims and objects of the Tamil Nadu Text Book Society and those of the respondent- assessee are almost identical. It is also not shown to us that the surplus amount, if any, of the respondent-assessee, is used for any other purpose or distributed to other members. The CIT(A) as well as the Tribunal have noticed that even if some amount remains surplus, that is utilised only for the purposes of education. Thus, having regard to the concurrent findings of fact recorded by the CIT(A) and the Tribunal and also taking note of the letter of the CBDT itself, it is not possible for us to say that the order of the Tribunal is erroneous in any way. In this way, no question of law arises for consideration much less a substantial question of law."

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

Thus, it is clear that the Hon’ble Supreme Court has followed the

decision of Hon’ble Jurisdictional High Court in case of the assessee

before us reported 244 ITR 667 and held that it is controlled by the

State of Assam. Further, the state controlled Committee/Board have

been constituted to implement the education policy of the State

therefore, they should be treated as educational institution.

and newly inserted Section 10(23C)(iiiab) of the Act is an extra

condition that “the institution should be wholly or substantially financed

by the Government”. There is no dispute that at the time of creation of

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

the assessee-society the entire capital of Rs. 78,292/- was induced/

contributed by the State Government and thereafter the assessee has

not received any contribution from any other person or party. The only

source of the assessee’s receipt is the compensation/recovery of cost of

books published by the assessee and supplied free of cost to the

students of Government schools as well as the cost of such books

which were distributed to private schools. Therefore, the initial capital

as well as every year revenue received by the assessee is substantially

from the State Government and the surplus from such receipt from the

Government is transferred to the reserve. For the purpose of Section

10(23C)(iiiab) of the Act the wholly or substantially financed by the

Government has to be seen for each assessment year. From the details

of the revenue received by the assessee for these two assessment

years it is clear that more than 50% of the Revenue is received from

the Government of Rajasthan. The comparative details of the amount

received from the Government against the free distribution of books

under the scheme of government for these two assessment years as

well as the amount received against supply to private distributors are as

under:-

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

Particulars FY 2012-13 FY 2013-14

Amount % Amount %

Net supply to State 1249204326 66.46% 882879232 59.21% Government

Net supply to Private 630448004 33.54% 608233387 40.79% distributors

Therefore, it is clear from the above details of the receipt from the

Government as against the supply to the private distributor that for the

assessment year 2013-14 the assessee has received more than 66% to

the total receipt from State Government and for the assessment year

2014-15 the receipt from the Government is more than 59%. If we see

in terms of provisions of Section 10(23C)(iiiab) of the Act it is more than

prescribed limit of 50% to constitute substantially financed by the

Government. Even if reserves and surplus of the assessee are to be

taken into consideration the component of the reserve and surplus from

the receipt of the Government is more than 50%. Therefore, applying

the parameter of more than 50% of the revenue is received from the

Government against the supply of books free of cost under the scheme

of the State Government it is regarded as substantially financed by the

Government. The Indore Benches of the Tribunal vide order dated 36

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

25.04.2012 in case of MP Rajya Pathya Pustak Nigam vs. DCIT in ITA

No. 375 to 394/Ind/2011 has dealt with an identical issue and held in

para 29 to 39 as under:-

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

1997-98 10,70,794 1996-97 7,73,362 1995-96 7,82,584 1994-95 12,65,307

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

education and to public assistance in case of unemployment, old age sickness disabilities and in other cases of undeserved want.” Providing of school text books and incidental publication at cheaper rates is definitely to aid kind promote advancement of education to the children.” 32. To comply with the statutory requirement on article 21A and 41, the assessee society is following syllabus prescribed by the M. P. Government and printing and publishing books for the use of students of Class I to XII of the State of M. P. The assessee society is doing this job under the policy of the Government in the absence of which, an institution of that type cannot be run. Thus, the assessee is directly and indirectly fulfilling the objective laid down under article 21A and 41 of the Constitution of India, which provides that it is the primary duty of State to secure the right to education and to establish educational institution, admission of students etc. Furthermore, the education is subject matter of concurrent list under Schedule VII “111 of the Constitution of India and to achieve this date, the State Government framed a policy and to implement it effectively it has constituted bodies like the assessee society. It is also evident from record that the assessee society is constituted by the State Government with the object to provide text books to the students of Class I to XII at a cheaper rate and the State Government has achieved this object very successfully, which is clear from the fact that selling price of the book printed by the Society is just 1/3rd in comparison to the text books published by the private publishers. The assessee has also placed on record list containing details regarding selling price of the books published by the Society vis-à-vis private publishers in part III as placed at page 931 & 932 of the paper book. It is also evident from the audited accounts for the assessment year 1988-89 to 2008-09 that the assessee society has not incurred any expenditure for non-educational purposes. Even both the lower authorities have not given any finding nor brought any material on record even during remand assessment proceedings, to suggest that the assessee has incurred any expenditure for non- educational purposes. Thus, we found that entire fund of the assessee 39

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

society was utilized only for the educational purposes and nothing was brought on record by any of the lower authorities to indicate that the assessee society has utilized fund for purpose other than educational activities. As per object clause no. (2), the assessee is producing school text books and hand books for teaches, work books for pupils and other educational literature, which is useful for furtherance of teaching, learning and for evaluation -: any educational institution. In addition to printing of text books, the assessee also encourages and procures experts authors to write text books on various subjects as per the syllabus prescribed by the Government for various courses of education. As per Object No.(14), printing, publishing and sale of books., is approved by Government and page (5) and (6) prescribed for undertaking research for education. 33. It is pertinent to mention here that like assessee society which is engaged in printing and publishing of text books as prescribed by the State of M.P., similar type of institution is also working in other states like Tamil Nadu, Rajasthan, Delhi, Orissa, Bihar. In case of similar institutions exemptions have been allowed by the Tribunal and High Court. Hon'ble Rajasthan High Court has dealt with in detail the activity of Rajasthan State Text Book Code, 224 ITR 668 and allowed exemption u/s 10(22) of Income-tax Act, 1961. Hon'ble High Court has observed at page 668 that the facts in the case of Tamil Nadu Text Book Society are similar. In the case of Tamil Nadu Text Book Society, the C.B.D.T. itself has taken the view vide its letter dated 19.8.1975 that Tamil Nadu Text Book Society is entitled for exemption u/s 10(22) of the Income-tax Act. The said letter reads as under :- “On careful consideration of facts involved the Board is of opinion that the Tamilnadu Text Book Society would be an educational institution existing solely for the purpose of education within the meaning of Section 10(22) of the Income-tax Act.” 34. It is clear from the above letter that CBDT itself has recognized the right of exemption u/s 10(22), to such institution engaged in printing and publishing of books for students.

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

falling within the definition of “Other educational institution”. However, in the instant case before us, undisputedly, the assessee society was established only for the purpose of advancement of education by printing and publishing of text books as prescribed by the Government. As discussed above, all such institutions working in all other States of India were held to be eligible for claim of exemption u/s 10(22). Thus, there was no justification on the part of lower authorities for decline of claim of exemption u/s 10(22)/10(23C). Even in the case of Academy of General Education, 150 ITR 135, it was observed that the assessee itself need not impart education to the students and it need not be necessarily school or college for the claim of benefit. It was found that in its account even though the assessee has not included income of Colleges, established under separate trust. However, it was found that the assessee has given grants to some of those schools, it was held that the assessee was entitled for claim of exemption u/s. 10(22). 37. In letter F.No.184/26/75-Income-tax Act, 1961,-1 dated the 19th August, 1975, of the CBDT, it was observed by the CBDT that “On careful consideration of facts involved, the Board is of the opinion that the Tamil Nadu Text Book Society would be an educational institution exiting solely for the purpose of education within the meaning of Section 10(22) of the Income-tax Act.” 38. Applying the facts of the assessee to the facts discussed by the CBDT, we have no hesitation to hold that assessee is entitled for claim of exemption u/s 10(22). As a matter of fact, recently Hon'ble Supreme Court in the case of Assam State Text Books Production Publication (supra), has made a reference to the said letter, at page 21 of the Hon'ble Supreme Court stated as under :- “However, the High Court noticed the letter issued by the CBDT on August 19,1975, in the case of Tamil Nadu Text Book Society, which as stated above in the similar ` circumstances had granted exemption to the Tamil Nadu Text Book Society as educational institution within the meaning of Section 10(22) of the Act. The judgment of the High Court further recites that under a similar situation, the CBDT had also extended the benefit of exemption u/s 10(22) of the Act to the Orissa 42

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E)

Secondary Board Education as reported in Secondary Board Education vs. ITO, (1972) 86 ITR 408 (Orissa), following these circulars/letters issued by the CBDT, the Rajasthan High Court came to the conclusion that the assessee in that case namely the Rajsthan High Court came to the conclusion that the assessee in that case namely The Rajasthan State Text Book was entitled to claim the benefit of exemption u/s 10(22) of the Act.” 39. In view of the above discussion and applying the judicial pronouncements to the facts of the instant case vis-à-vis aims and objects referred above, we hold that lower authorities were not justified in declining claim of exemption to the assessee society u/s 10(22)/10(23C) of the Income-tax Act, 1961, in respect of all the years under consideration, for the detailed reasons discussed hereinabove.”

Thus, Indore Benches of the Tribunal has analysed all the relevant

decisions on the point and after following the decision of Hon’ble High

Court as well as the decision of Hon’ble Supreme Court has held that

MP Rajya Pathya Pustak Nigam which is society having similar objects

as of the assessee before us is eligible for exemption U/s 10(23C)(iiiab)

of the Act. Having regard to the facts and circumstances of the case as

well as various decisions as discussed above, we hold that the

assessee-society which was already held as educational institution

existing solely for education and not for purposes of profit is also

substantially financed by the State Government and therefore, is eligible

for exemption U/s 10(23C)(iiiab) of the Act. Accordingly, the orders of

ITA No. 252 &253/JP/2019 Rajasthan State text Book Board vs. ACIT(E) the authorities below are set aside and the claim of the assessee is allowed.

In the result, both the appeals of the assessee are allowed

Order pronounced in the open court on 10/04/2019.

Sd/- Sd/- ¼ jes’k lh0 “kekZ ½ ¼fot; iky jko½ (Ramesh. C. Sharma) (Vijay Pal Rao) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 10/04/2019. *Santosh. आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- Rajasthan State Text Book Board, Jaipur. 2. izR;FkhZ@ The Respondent- ACIT(Exemption), Circle, Jaipur. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत. 6. xkMZ QkbZy@ Guard File {ITA No. 252 & 253/JP/2019} vkns'kkuqlkj@ By order,

सहायक पंजीकार@Aेेज. त्महपेजतंत