SHRI CHANDER CHINAR BADA AKHARA UDASEEN SOCIETY, AD GANDHI NAGAR JAMMU vs. EXEMTION WARD , JAMMU

ITA 314/ASR/2025Status: DisposedITAT Amritsar06 July 2026AY 2017-201811 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that unrefunded student caution money is not taxable under Section 41(1) as it is neither a trading liability nor a business expense write-back. The addition of Rs. 56.95 lakhs was deleted, but the disallowance of excess interest paid to specified persons was upheld.

What were the facts?

The assessee, a trust running a hospital and medical college, claimed exemption under Section 11. The AO rejected the exemption and made additions, including Rs. 56.95 lakhs for unrefunded caution money under Section 41(1) and disallowance of excess interest paid to specified persons.

What were the issues?

Whether unrefunded caution money held by a charitable trust is taxable under Section 41(1) and whether interest paid to specified persons at 18% is excessive.

Which sections of the Income-tax Act were involved?

Section 41(1),Section 13(1)(c),Section 13(1)(d),Section 40A(2),Section 11,Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.

Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DAS GUPTA

For Respondent: Smt. Ratinder Kaur, Sr. DR
Hearing: 09.04.2026Pronounced: 06.07.2026

Per: Udayan Dasgupta, JM: This appeal is filed by the assessee against the order of ld. CIT(A), NFAC, Delhi, passed u/s 250 of the IT Act, 1961, ( henceforth the Act ) dated 20.02.2025 which has emanated from the order of AO, NFAC, Delhi, passed u/s 143(3) of the Act, dated 27.12.2019. 2. The grounds of the appeal in Form 36 are as under:

“1 That the Id. CIT(A) has erred in law and on facts in confirming the order of the AO that the Trust has given undue benefits to the specified persons vide Para 5.3 Page 34 of the order of the CIT(A), Assessment Year: 2017-18 2

2 That the ld. CIT(A) has erred in law and on facts in confirming the addition of

The order continues below.

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