M/S SHAHEED UDHAM SINGH EDUCATYIONAL SOCIETY,MOGA vs. INCOME TAX OFFICER, (EXEMPTIONS), JALANDHAR

ITA 562/ASR/2016Status: DisposedITAT Amritsar05 April 2019AY 2011-1211 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the commission receipts, being in the nature of business and subject to TDS under Section 194H, were not eligible for exemption under Section 10(23C)(iiiad). The assessee's activities were considered to be in the nature of business with a profit motive, not solely for educational purposes.

What were the facts?

The assessee, an educational society, claimed exemption under Section 10(23C)(iiiad) for its income. The Assessing Officer (AO) reopened the case due to cash deposits and found that receipts from Punjab Technical University (PTU) were in the nature of commission subject to TDS under Section 194H, deeming them business income not eligible for exemption. The Commissioner of Income Tax (Appeals) upheld the AO's decision.

What were the issues?

Whether commission receipts from PTU, subject to TDS, are eligible for exemption as educational income under Section 10(23C)(iiiad). Whether the assessee society's activities were solely for educational purposes to qualify for exemption.

Which sections of the Income-tax Act were involved?

Section 194H,Section 147,Section 143(3),Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Camp Bench at Jalandhar

Before: Shri N.K. Saini & Shri Ravish Sood

For Appellant: Shri Sudhir Sehgal, A.R
For Respondent: Shri Bhawani Shankar, D.R
Hearing: 07.01.2019Pronounced: 05.04.2019

PER RAVISH SOOD, JM The present appeal filed by the assessee society for A.Y. 2011-12 is directed against the order passed by the CIT(A)-4, Ludhiana, dated 31.08.2016, which in turn arises from the order passed by the A.O under Sec. 143(3) of the Income Tax Act, 1961 (for short ‘IT Act’), dated 03.03.2015. The assessee assailing the order of the CIT(A) has raised before us the following grounds of appeal:

“1. The order passed u/s 250(6) of the Income Tax Act, 1961 by the Ld. Commissioner of Income Tax (Appeals)-4, Ludhiana is aga

The order continues below.

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