What did the Tribunal hold?

The Tribunal noted that the High Court order was not presented before the lower authorities. Therefore, the matter was restored to the Assessing Officer to consider the High Court order and pass a fresh assessment.

The Assessing Officer made an addition of Rs. 61,12,643/- by treating excess fees charged by the assessee trust as capitation fee. The assessee contended that this excess fee was for B.Ed courses and permitted by a High Court order.

What were the issues?

Whether excess fees charged by an educational trust for certain courses constitute capitation fee, and if a High Court order permits such fees.

Tirupati Educational and Welfare… vs DCIT | ITAT Delhi 2023

Income Tax Appellate Tribunal, DELHI BENCH ‘G’ : NEW DELHI

Before: SH. N.K.BILLAIYA & SH. ANUBHAV SHARMA

For Respondent: Ms. Sangeeta Yadav, Sr. DR

Hearing: 16.01.2023Pronounced: 18.01.2023

The appeal has been filed by the Assessee against order dated 31.08.2017 in Appeal No. 326/16-17 assessment year 2014-15 passed by Commissioner of Income Tax (appeals), Meerut (hereinafter referred to as the First Appellate Authority or in short ‘Ld. F.A.A.’) in regard to the appeal before it arising out of assessment order dated 26/12/2016 u/s 143(3) of the Income Tax Act, 1961 passed by DCIT(Exemption), Circle-Ghaziabad (hereinafter referred to as the Assessing Officer or ‘AO’).

.Del.2018 Tirupati Educational & Welfare Trust, Meerut 2

The assessee has raised following grounds :- “

1. The Ld. CIT (Appeals) erred in law and on facts on both while partly allowing the appeal filed by the assessee.

2. The Ld. CIT (Appeals) erred in law and on facts in not considering the written submissions and relevant evidences filed by the assessee during the hearing of appeal in regard of the addition to fees made by the Assessing Officer, by alleging that the assessee college has charged the fees from students beyond the prescribed amount of fees as decided by the Govt. Authorities , and also The Ld. CIT(A) has erred in law for confirming the action of the assessing officer for not allowing the provisions of 12A on this addition .

3. Any other ground of appeal which may be raised during the course of hearing of appeal.

Heard and perused the record.

Ld. AO has made an addition of Rs. 61,12,643/- by treating the excess fee charged as capitation fee. The assessee has claimed that this alleged capitation fee is with regard to B.ed courses only and for which by virtue of order dated 29.05.2013 of Hon’ble Allahabad High Court in Miscellaneous case no. 3550 of 2013 fee above one determined by the fee committee was accepted. However, the matter of fact is that this order dated 29.05.2013 as produced before this bench was not cited before Ld. AO or Ld. First Appellate Authority. Thus, the end of justice require to restore the issue to the files of Ld. AO to take into consideration the order of Hon’ble High Court and after giving an opportunity of hearing pass a fresh order in the issue.

Accordingly, the appeal is allowed for statistical purposes. Order pronounced in the open court on 18th January, 2023.

TIRUPATI EDUCATIONAL AND WELFARE SOCIETY,MEERUT vs. DCIT(EXEMPTION), GHAZIABAD

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