SHRI SAI ANIRUDDHA EDUCATION SOCIETY,RATNAGIRI vs. INCOME TAX OFFICER, KOLHAPUR
Facts
The assessee, an educational society, filed a Nil income return for AY 2023-24, which was taken up for scrutiny. The AO rejected applications for registration under section 12A(1)(ac) and disallowed 10% of expenditure (₹8,59,625) due to lack of explanation, leading to an addition. The CIT(A) dismissed the assessee's appeal as time-barred, despite a previous Tribunal order confirming the assessee's eligibility for 12A(1)(ac) registration and charitable activities.
Held
The Tribunal acknowledged its prior order, which held the assessee eligible for registration under section 12A(1)(ac) and for carrying out charitable activities. Given this, the Tribunal found it appropriate to restore the issues to the Jurisdictional Assessing Officer for a de novo assessment, considering the assessee's established registration status. The impugned order was set aside, and the appeal was allowed for statistical purposes, with directions for the AO to provide reasonable opportunity.
Key Issues
Whether the assessee, an educational society, is eligible for registration under section 12A(1)(ac) and exemption under section 10(23C)(iiiad), and if the disallowance of expenditure and dismissal of appeal by lower authorities were justified given a prior Tribunal decision on the assessee's charitable status.
Sections Cited
Section 250, Section 143(3), Section 144B, Section 10(23C)(iiiad), Section 12A(1)(ac), Section 2(15)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD
आदेश / ORDER
The captioned appeal at the instance of assessee pertaining to the Assessment Year 2023-24 is directed against the order dated 29.09.2025 of National Faceless Appeal Centre, Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of the Assessment Order dated 16.03.2025 passed u/s.143(3) r.w.s.144B of the Act.
At the outset, ld. Counsel for the assessee submitted that the assessee is an Educational society and runs various schools and is eligible for exemption u/s.10(23C)(iiiad) of the Act. He also submitted that recently this Hon’ble Tribunal vide order dated 16.04.2025 has held in favour of the assessee observing that the assessee is carrying out charitable activities and is eligible for registration u/s.12A(1)(ac) of the Act. He however fairly admitted that since the order of this Tribunal has been pronounced on 16.04.2025 there was no occasion with the
ITA No.2661/PUN/2025 Shri Sai Aniruddha Education Society
Assessing Officer to have carried out the assessment proceedings keeping into consideration the assessee being eligible for exemption u/s.12A(1)(ac) of the Act and there is no objection if the issues are restored to the file of ld. Jurisdictional Assessing Officer for necessary adjudication.
On the other hand, ld. DR supported the orders of the lower authorities.
I have heard the rival contentions and perused the record placed before me. I observe that the assessee is an educational society and return of income for A.Y 2023-24 filed on 29.12.2023 declaring Nil income been taken up for compulsory scrutiny. During the course of pendency of the reassessment proceedings, various applications filed by the assessee for registration u/s.12A(1)(ac) of the Act have been rejected and ld. AO concluded the proceedings observing that the assessee has not offered explanation for the expenses incurred during the year including TDS related expenses and accordingly disallowed 10% of the expenditure claimed by the assessee thereby making addition of ₹8,59,625. I further note that the assessee preferred appeal before ld.CIT(A). Ld. CIT(A) dismissed the appeal in limine as barred by limitation by 76 days by not condoning the delay.
Before me, ld. Counsel for the assessee has placed the copy of decision of this Tribunal in assessee’s case in ITA No.2240/PUN/2024 order dated 16.04.2024. Perusal of the same indicates that this Tribunal has held that the assessee is eligible for registration u/s.12A(1)(ac) of the Act and that the assessee is carrying out charitable activities as defined u/s.2(15) of the Act. I find that during the course of assessment proceedings, assessee was found to be not registered
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u/s.12A(1)(ac) of the Act but since now this Tribunal has decided in favour of the assessee and has directed the Revenue authorities to grant registration, I deem it appropriate that the issues raised in the instant appeal deserves to be restored to the file of ld. Jurisdictional Assessing officer for denovo assessment on due consideration that the assessee is registered u/s.12A(1)(ac) of the Act. Needless to mention that ld. JAO shall afford reasonable opportunity to the assessee. Impugned order is set aside and effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 28th day of January, 2026.
Sd/- (MANISH BORAD) ACCOUNTANT MEMBER पुणे / Pune; �दनांक / Dated : 28th January, 2026. Satish
आदेश क� �ितिलिप अ�ेिषत / Copy of the Order forwarded to : अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The Pr. CIT concerned. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब�च, 4. पुणे / DR, ITAT, “SMC” Bench, Pune. गाड� फ़ाइल / Guard File. 5. आदेशानुसार / BY ORDER,
// True Copy // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune
