Exemption u/s 10(23C)(iv) cannot be rejected if Net Surplus is less than 20% of Total Receipts: ITAT

The Income Tax Appellate Tribunal (ITAT) ruled that a net surplus of less than 20% of total receipts should not lead to the rejection of an exemption under Section 10(23C)(iv) of the Income Tax Act. The case involved an educational institution whose exemption was denied on the grounds of generating a surplus. The ITAT held that as long as the surplus remains below the 20% threshold, the institution should not lose its tax-exempt status. This ruling provides clarity on how surpluses are treated for tax exemption purposes, offering relief to institutions operating within this limit.