SUKANTI EDUCATIONAL AND CHARITABLE TRUST,SONEPUR vs. ITO,EXEMPTION WARD, SAMBALPUR

ITA 51/CTK/2025Status: DisposedITAT Cuttack12 June 2025AY 2016-17Bench: SHRI DUVVURU RL REDDY, VICE PRESIDENT (KZ), SHRI RAKESH MISHRA (Accountant Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that even if exemption under Section 10(23C)(iiiad) was not allowable, only the net surplus of income over expenditure should be taxed, not the gross receipts. It noted that subsequent assessment years had been rectified to tax only the surplus, establishing a rule of consistency.

What were the facts?

The assessee, a charitable trust running educational institutions, did not register under Section 12A or 10(23C) and filed its return treating itself as an AOP. The Assessing Officer (AO) taxed the entire gross receipts as income due to non-compliance with notices and lack of documentation. The CIT(A) dismissed the appeal, citing non-participation and lack of evidence for expenses.

What were the issues?

Whether the entire gross receipts of educational institutions should be taxed as income, or only the net surplus after deducting expenses, and whether the assessee's failure to provide documentation during assessment warranted taxing gross receipts.

Which sections of the Income-tax Act were involved?

Section 144,Section 57,Section 142(1),Section 143(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH AT KOLKATA

Before: SHRI DUVVURU RL REDDY(KZ) & SHRI RAKESH MISHRA

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals) [hereinafter referred to as Ld. 'CIT(A)']-NFAC, Delhi passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2016-17 dated 09.12.2024, I.T.A. No.: 51/CTK/2025 Assessment Year: 2016-17 Sukanti Educational and Charitable Trust. which has been passed against the assessment order u/s 144 of the Act, dated 18.12.2018. 2. The assessee is in appeal befo

The order continues below.

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