MATA DHAN KAUR PUBLIC SCHOOL (PART OF CHOUDHARY MEER SINGH SCOIETY),DELHI vs. INCOME TAX OFFICER, WARD EXEMPTION 1(4), DELHI, DELHI

ITA 3096/DEL/2026Status: DisposedITAT Delhi29 September 2026AY 2018-195 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the sole issue concerned the taxation of cash deposits in a bank account, which the AO attributed to the assessee as unexplained income due to the non-filing of a return. The assessee contended that the deposits belonged to Chaudhary Meer Singh Memorial Society, which had recorded them in its books, and that the society's receipts were below the exemption limit under Section 10(23C)(iiiad). The Tribunal noted that the society filed returns for Assessment Year 2019-20 onwards, incorporating deposits from the same bank account, which were accepted by the Department. Consequently, the Tribunal ruled that solely for the reason of not filing a return in the current year, no addition could be made in the assessee's hands. The additions were deleted, and grounds of appeal Nos. 2 to 5 were allowed. As a result, the legal issue raised in ground of appeal No. 1 was not adjudicated.

What were the facts?

The assessee, Mata Dhan Kaur Public School, is a society running a school. The Income Tax Officer (AO) reopened the assessment for Assessment Year 2018-19, alleging that the assessee made a cash deposit of Rs. 75,15,600/- and received Rs. 25,128/- as interest, without filing a return of income. The assessee claimed these receipts belonged to Chaudhary Meer Singh Memorial Society, which had incorporated them as school fees. As the society's gross receipts were below the threshold for Section 10(23C)(iiiad), no ITR was filed. The AO disagreed, adding the entire amount to the assessee's total income, assessed at Rs. 75,40,728/-. The CIT(A) dismissed the assessee's appeal.

What were the issues?

1. Whether the reassessment proceedings are invalid and without jurisdiction due to non-compliance with Sections 147, 148, 151, 148A, and 149 of the Income Tax Act, 1961, making the assessment void ab initio. 2. Whether the addition of Rs. 75,15,600/- under Section 69A read with Section 115BBE of the Act on account of cash deposits is tenable, given that the receipts were accounted for by Chaudhary Meer Singh Memorial Society, to which the trust belongs. 3. Whether the addition of Rs. 75,15,600/- is valid, considering the appellant is a charitable trust engaged in educational activities, and the source of the cash deposit is eligible for exemption under Section 10(23C)(iiiad) of the Act. 4. Whether Section 69A read with Section 115BBE of the Act is applicable in the present case. 5. Whether the addition of Rs. 25,128/- under the head 'other sources' is valid. Assessee's arguments: The cash deposits and interest do not pertain to the assessee but to Chaudhary Meer Singh Memorial Society. These receipts were duly recorded in the society's books, and its gross receipts were below the Section 10(23C)(iiiad) threshold, hence no return was filed. The society accepted these receipts. For subsequent assessment years, the society filed returns incorporating these deposits, which were accepted by the Revenue, establishing a principle of consistency. Therefore, the addition in the assessee's hands is not tenable. Revenue's arguments: The CIT(A) observed that the bank account was not disclosed by the appellant society, nor were documentary evidences from students provided to support the claim that the cash deposits were tuition fees paid by students of the school run by Chaudhary Meer Singh Memorial Education Society. Therefore, the additions should be confirmed.

Which sections of the Income-tax Act were involved?

Section 69A,Section 115BBE,Section 147,Section 148,Section 148A,Section 149,Section 151,Section 250

AI-generated summary — verify with the full judgment below

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

For Appellant: Shri Suresh Gupta, CA
For Respondent: Shri Ravinder Singh Yadav
Hearing: 23/07/2026Pronounced: 29/09/2026

PER MANISH AGARWAL, AM: This appeal is filed by the assessee against the order of Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [‘CIT(A)’ in short] in Appeal No. NFAC/2017-18/10236151 dated 09.02.2026 passed u/s 250 of the Income Tax Act, 1961 (the Act, in short) arising out of the assessment order dated 14.03.2023 passed u/s 147 read with section 144 of the Act for Asst. Year 2018-19. 2. Briefly stated the facts of the case are that assessee is a society engaged in imparting education by running of the school. The case of the assessee was reopened by issuing of notice u/s 148 on 26.03.2022 after passing the

The order continues below.

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