SARVODAYA SAMAJ KALYAN SANSTHAN,JAMUI vs. CPC , BANGALURU

Facts

The assessee, an educational trust, filed its return of income for AY 2018-19 declaring a surplus. The income tax intimation charged tax at the Maximum Marginal Rate (MMR) instead of normal slab rates. The assessee's rectification petitions were rejected, and an appeal to the CIT(A) was also dismissed.

Held

The Tribunal held that the assessee, being an institution solely existing for educational purposes and having gross receipts below Rs. 1 crore, qualifies for exemption under Section 10(23C)(iiiad) of the Income Tax Act. Therefore, the assessment at MMR was not justified.

Key Issues

Whether the assessee, an educational trust, is eligible for exemption under Section 10(23C)(iiiad) and whether charging tax at Maximum Marginal Rate is justified.