THE COMMISSIONER OF INCOME TAX vs. M/S. SRI. BASAVESHWAR VEERASHAIVA VIDYAVARDHAK SANGHA

THE COMMISSIONER OF INCOME TAX, CIT(A) EXEMPTIONS, UNITY BUILDING ANNEXE, MISSION ROAD, BENGALURU-560 027.

THE DEPUTY COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE-2(2), PRESENT ADDRESS, ACIT, CIRCLE-1, EXEMPTIONS, UNITY BUILDING ANNEXE, MISSION ROAD, BENGALURU-560027.

The Revenue is in appeal under Section 260-A of the Income Tax Act, 1961 (for short ‘the Act’) questioning the correctness and legality of order dated 28.12.2021 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short ‘Appellate Authority’) in ITA.No.63/Bang/2018 for the assessment year 2011-12.

This

Whether, on the facts and in the circumstances of the case and law, orders passed by CIT(A) and Tribunal are perverse in nature as both authorities

Whether, on the facts and in the circumstances of the case and law, Tribunal and CIT(A)’s order can be said as perverse in nature in holding that assessee is entitled for exemption under section 11 of the Act even when the assessee is involved in carrying providing education on commercial bases against to principles laid down by Hon’ble Apex Court in case of T.M.A Pai?

Whether on the facts and in the circumstances of the case, the Tribunal’s and CIT(A)’s orders are perverse in nature in deleting additions made in respect of

Whether on the facts and in the circumstances of the case, the Tribunal and CIT(A) failed to observe that in Section 153A does not stipulate that additions in assessment order are to be based on incriminating materials and as such Tribunal ought to have considered the case on merits?

Learned counsel for the assessee submits that the tax effect in this appeal is less than Rs.2 Crores and therefore, the appeal should not be entertained at the instance of the revenue in view of the Circular No.09/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the revenue.

On the other hand, learned counsel for the revenue submits that he be granted liberty to revive the appeal in case the matter falls within the exceptions under

In view of the aforesaid submissions, the appeal is disposed of with liberty as prayed for by the learned counsel for the revenue. However, the question of law is kept open to be adjudicated in an appropriate proceeding.