DELHI CHINMAYA SEWA TRUST,DELHI vs. ACIT, CIRCLE EXEMPT 1(1), DELHI

PER SATBEER SINGH GODARA, JM:

This assessee’s appeal ITA no. 3586/Del/2025 for assessment year
2016-17 arises against CIT(A)/ NFAC, Delhi’s order dated 23.04.2025 (DIN &
Order No. ITBA/NFAC/S/250/2025-26/1075753071(1), in proceedings u/s 147 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.

Heard both the parties at length. Case files perused.
2. Coming to the sole substantive issue herein between the parties, it transpires during the course of hearing that both the learned lower authorities have assessed the assessee’s development & maintenance charges collection of Rs. 43,24,868/-

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Delhi Chinmaya Sewa Trust as revenue receipts in assessment order dated 9.3.202 as upheld in the lower appellate discussion.
3. That being the case, learned counsel has first of all filed the Delhi state government’s notification/ order dated 11.02.2009 issued u/s 17 read with section 24 of the Delhi School Education Act, 1973 and draws my attention to its clause no. 14 that such development fee in fact is meant for capital assets than revenue in nature. This tribunal’s order in Maharishi Markandeshwar Trust v. ACIT dated
27.06.2022 in ITA Nos. 1966 to 1972/Del/2021 has also reiterated the very principle. I, therefore, see no merit in the lower authorities’ findings assessing the impugned development & maintenance charges collection as taxable under the provisions of the Act. Deleted accordingly.
4. This assessee’s appeal ITA No. 3586/Del/2025 is allowed in above terms.
Order pronounced in open court on 20.08.2025 (SATBEER SINGH GODARA)

JUDICIAL MEMBER
*MP*