DCIT CENTRAL CIRCLE 7 (1) , MUMBAI vs. DR D Y PATIL EDUCATIONAL ACADEMY, MUMBAI

ITA 2289/MUM/2025Status: DisposedITAT Mumbai10 February 2026AY 2015-16Bench: HON’BLE SHRI SANDEEP GOSAIN (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the development fee collected by the assessee trust was a voluntary contribution and formed part of the corpus, eligible for exemption under Section 11(1)(d) of the Income Tax Act. The AO's assumption of violation of the Prohibition of Capitation Fee Act was found to be incorrect.

What were the facts?

The assessee, a charitable trust, collected 'development fee' from students. The Assessing Officer (AO) treated this fee as revenue and added it to the income, considering it a compulsory charge. The CIT(A) deleted these additions, which the revenue appealed.

What were the issues?

Whether the 'development fee' collected by a charitable educational trust is a revenue receipt or a corpus donation eligible for exemption under Section 11(1)(d) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 11,Section 12,Section 132,Section 153C,Section 143(3),Section 250,Section 11(1)(d)

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Income Tax Appellate Tribunal, “D” BENCH MUMBAI

Before: HON’BLE SHRI SANDEEP GOSAIN & SHRI GIRISH AGRAWAL

For Appellant: Shri Rajeev Khandelwal CA (Virtually)
For Respondent: Shri Umashankar Prasad (CIT DR)
Hearing: 25.11.2025Pronounced: 10.02.2026

PER SANDEEP GOSAIN, JM: The present appeals have been filed by the assessee challenging the impugned order dt. 31.01.2025 passed under section 250 of the Income Tax Act, 1961 (‘the Act’), by the National Faceless Appeal Centre (NFAC) / CIT(A) for the assessment years 2017-18 & 2015-16. 2. Since all the issues involved in these two appeals are common and identical, therefore, they have been clubbed, heard together and consolidated order is being passed for Dr.D Y Patil Educational Academy., Mumbai.

the sake of convenience and brevity. We shall take ITA No. 2251/Mum/2025, A.Y 2017-18 as lead c

The order continues below.

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