M.G.R.EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT, CENTRAL CIRCLE-2(1), HYDERABAD

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ITA 858/HYD/2025Status: DisposedITAT Hyderabad25 August 2025AY 2017-1871 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the PCIT cancelled the registration based on findings of suppressed fee receipts and diversion of funds to trustees, which were allegedly not for the society's objects. The PCIT also relied on a diary found during a search indicating significant cash expenditure not for the society's purposes.

What were the facts?

The M.G.R. Educational Society's registration was cancelled by the Principal Commissioner of Income Tax (PCIT) for AY 2017-18 and 2022-23. The PCIT found evidence of suppressed fee receipts, diversion of funds to trustees, and unaccounted cash transactions during a search.

What were the issues?

Whether the PCIT had the jurisdiction to cancel the registration of the educational society based on alleged suppression of fees and diversion of funds. The validity of the evidence relied upon by the PCIT, including seized documents and statements, was also in question.

Which sections of the Income-tax Act were involved?

Section 12AB(4),Section 12AA,Section 119

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hydarabad ‘A‘ Bench, Hyderabad

For Respondent: Ms. U. Mini Chandran – CIT-DR
Pronounced: 10.10.2025

आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:- 1. निर्धाररती/The Assessee : M.G.R. Educational Society, Hyderabad. C/o. B. Narsing Rao & Co. LLP, Plot No.554, Road No.92, MLA Colony, Jubilee Hills, Hyderabad. PIN – 500 096. 2. रधजस्व/ The Revenue : The DCIT, Central Circle-2(1), Aayakar Bhavan, Basheerbagh, HYDERABAD – 500 004. Telangana 3. The Pr. CIT, Central Circle, Hyderabad. 4. नवभधगीयप्रनतनिनर्, आयकर अपीलीय अनर्करण, हैदरधबधद / DR, ITAT, Hyderabad 5. गधर्ाफ़धईल / Guard file

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