AIRAA ACADEMY EDUCATIONAL TRUST,BANGALORE vs. PRINCIPAL COMMISSIONER OF INCOME TAX (EXEMPTION), BANGALORE

Assessee by : Shri A R Valisha Shakeel, CA Shri Priyadarshi Mishra, Revenue by : Addl. CIT (DR) Date of Hearing : 05.11.2021 Date of Pronouncement : 30.11.2021 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal is filed by assessee against order dated 01/04/2021 passed by the Ld.CIT(E), Bangalore for assessment year 2020-21. Brief facts of the case are as under: 2. Assessee is an educational trust, with an object of running Montessori centers, school, colleges, polytechnics and other educational institutions including vocational training centers, Page 2 of research centers. Presently the trust is running only a school from Grade I to Grade VIII with CBSC Syllabus. The assessee filed Form 56 as per rule 2C read with section 10(23C) of the Income tax Act, 1961 for the Assessment Year (AY.) 2020-21 electronically on 30th March 2020. During the course various documents as called for examination were submitted by authorized representative on 19th March 2021. The CIT(E) Bangalore passed an order under section 10(23C)(vi) and (via) of the Income Tax Act by rejecting application filed by the assessee for exemption. Following were reasons for rejecting the application:  In proforma report column 7 the AO stated that details are a per Annexure “A” however no such annexure enclosed.  In column 9(c) the AO stating that no other receipts from any business incidental to object of trust. However, it is seen that assessee is showing receipts from canteen and Transportation.  Further, as per clause 10(d) the AO stated that no discretionary power vested in any trustee for utilization of fund. However, as per trust deed clause 6(f) it is stated that "The other Trustee shall not be entitled to participate in this decision-making process”.  Further, as per clause 6(l) it is stated that "Notwithstanding anything contained herein the following matters shall require Amitha's prior written approval.  Further last para of this clause and clause 7 sub clause iii mention about clause 6(m), which is not part of the Trust Deed.