THE SUVARTA ALLIANCE MINISTRIES TRUST,NANDURBAR vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, EXEMPTION CIRCLE , AURANGABAD

This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 10.05.2023 for the assessment year 2010-11.

Briefly, the facts of the case are that the appellant is a charitable trust formed with the object of rendering educational activities. It was duly registered under the provisions of section 12A of the Income Tax Act, 1961 (‘the Act’). The Return of Income for the assessment year 2010-11 was filed on 20.09.2010 Rs.Nil income. Against the said return of income, the assessment was completed by the Assessing Officer vide order dated 07.12.2012 passed u/s 143(3) of the Act accepted the returned income. Subsequently, the assessment was reopened u/s 147 on 30.03.2017 by issuing notice u/s 148 of the Act on 30.03.2017. In response to the notice u/s 148, the appellant filed a letter dated 01.06.2017 stating that the original return of income filed on 20.09.2010 may be treated as return of income in response to notice u/s 148 of the Act. Against the said return of income, the assessment was completed by the Asst. Commissioner of Income Tax, Exemption Circle, Aurangabad (‘the Assessing Officer’) vide order dated 07.12.2017 u/s 143(3) r.w.s. 147 of the Act at a total income of Rs.35,35,157/- denying the exemption u/s 11 of the Act. While doing so, the Assessing Officer brought to tax the alleged unexplained expenditure of Rs.9,80,000/- + Rs.15,000/- incurred by the appellant trust on the payment made to M/s. Educomp Solution Ltd.. The Assessing Officer also brought to tax a sum of Rs.34,22,157/- by holding that the appellant trust should have charged additional fees for students in respect of computer course undertaken by the M/s. Educomp Solution Ltd..