Assessee is an educational trust filed its return of income claiming exemption under section 11 of the Act. The  Assessing Officer denied benefit of section 11 to assessee on ground that assessee had collected capitation fee in violation of Karnataka Educational Institution (Prohibition of capitation fee) Act, 1984. The assessee had  filed an affidavit stating that no action was initiated against it by State for any violation under said Act. The  Tribunal held that  the Assessing Officer, based on assumption and surmise, had held that there was violation under KEI (Prohibition of Capitation Fee) Act by assessee. Tribunal also held that department had issued certificate under section 12A to assessee. Accordingly the denial of exemption. was not justified. On appeal by the Revenue, High Court affirmed the order of the Tribunal. Followed  Kammavari Sangham v. Dy. CIT (E) (2023) 146 taxmann.com 367 (Karn)(HC)   (AY. 2012-13)