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This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-I, Patna [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250(6) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for AY 2012-13 dated 09.07.2018, Page | 2 I.T.A. No.: 344/PAT/2018 Assessment Year: 2012-13 Bihar State Educational Infrastructure Development Corp. Ltd.

1.2. Considering the condonation application and the reasons stated therein, we are satisfied that the assessee had a reasonable and sufficient cause and was prevented from filing the instant appeal within Page | 3 I.T.A. No.: 344/PAT/2018 Assessment Year: 2012-13 Bihar State Educational Infrastructure Development Corp. Ltd.

5. The section 10(23C)(iiiab) described with:
"any income received by any person on behalf of:
Clause (iiiab) "any university or other educational institution existing solely for educational purposes and not for purposes of profit and which is wholly or substantially financed by the Government"

6. The Bihar State Educational Infrastructure Development Corporation Limited (BSEIDCL) is the assessee and a public sector undertaking of the Government of Bihar, and is a Government Company, within the meaning of section 617 of the Companies Act, 1956, the entire shares of the company are held by the Governor of Bihar or his official nominees. The BSEIDCL is engaged in the business of building educational infrastructure and job works relating to same, etc. It had submitted its returns for the period in question claiming exemption from taxation, with following connotations:

iii. Since the fund is used solely for educational purposes the institutional activities of the same should be termed as "educational activities".
iv. State Government Corporation which has wholly owned equity shares belong to Governor of Bihar & constituents thereof with act of constitutional need. Same may be termed as Charitable Purpose and same should also be claimed to be an educational institution for charitable purpose within the meaning of section 2(15).

7. Since the corporation is wholly owned Bihar State Government concern. It has to be read with Part IV of the Constitution which enshrines the Directive Principles of State Policy. Article 38 is headed (State to secure a social order for the promotion of welfare of the people). Article 39 is to the effect that the State shall, in particular, direct its policy towards securing for the citizens, men and women equally, to secure the right to an adequate means of livelihood. Article 41 is headed | Right to work, to education and to public assistance in certain cases|. It is to the effect that the State shall, within the limits of its economic capacity and development, make effective provision for securing the right to education. Article 45 provides that the State shall endeavor to provide early childhood care and education for all children until they complete the age of six years. Article 46 provides to the effect that the State shall promote with special care the educational interest of the weaker sections of the people and, in particular, of the Scheduled Castes and the Scheduled Tribes. It may be parenthetically added that in furtherance of these provisions of the Constitution, the Parliament has enacted the Right of Children to Free and Compulsory Education Act, 2009. It is evident on a perusal of the relevant provision of section 10(23C), that the spirit of exemption from taxability of the income of the university or other educational institution without profit motive runs through the newly inserted provision with details added therein. Section 10(23C)(iiiab) appears to be of paramount importance in the present case. There is no denying the position that the assessee is an instrumentality of the State Government, and a Page | 6 I.T.A. No.: 344/PAT/2018 Assessment Year: 2012-13 Bihar State Educational Infrastructure Development Corp. Ltd.