M/S DURGA CHARITABLE SOCIETY,GHAZIABAD vs. JCIT, GHAZIABAD

ITA 4440/DEL/2015Status: DisposedITAT Delhi22 July 2021AY 2010-116 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that providing hostel facilities to students is an integral part of educational activities and not a business activity. Therefore, the surplus generated from hostels should not be treated as business income.

What were the facts?

The assessee, a charitable society running educational institutions, had its hostel surplus treated as business income by the Assessing Officer. The CIT(A) upheld this addition, leading to the present appeal.

What were the issues?

Whether surplus from hostel facilities provided to students of educational institutions is to be treated as business income or as part of charitable activities.

Which sections of the Income-tax Act were involved?

Section 11(4A),Section 11,Section 12AA,Section 80G

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

Before: MS SUCHITRA KAMBLE & SHRI PRASHANT MAHARISHI

Hearing: 30.06.2021Pronounced: 22.07.2021

PER SUCHITRA KAMBLE, JM

This appeal is filed by the assessee against order dated 16/02/2015 passed by CIT(A)-Muzaffarnagar, for assessment year 2010-11. 2. The grounds of appeal are as under:-

1.

“Whereas Ld. Commissioner (Appeal) erred in law as also in facts and circumstances of the case to confirm the addition of Rs. 3,92,25,432/- made by the JCIT, Range-2 Ghaziabad by assessing hostel surplus as business income of the assessee, completely ignoring the fact that the assessee is an educational society providing education by running various educational institutes and hostel facility is provided to the students as per ACITE norms and it is an inseparable and integral part of

The order continues below.

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