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Facts
The assessee, National Institute for Teacher Education, an educational institution and unit of Bharali Education Foundation, did not file its income tax return for AY 2017-18. During the demonetization period, it deposited Rs. 12,97,000 in cash. The Assessing Officer completed assessment u/s 144, adding the cash deposit as business income. The CIT(A) dismissed the assessee's appeal, holding it was a separate taxable entity and denied exemption u/s 10(23C)(iiiad).
Held
The Tribunal held that the assessee is an educational institution, and the cash deposit of Rs. 12,97,000/-, being less than the total fees received from students (Rs. 82,08,600/-), could be presumed to be from student fees. It clarified that registration u/s 12A/12AA is not a prerequisite for exemption u/s 10(23C)(iiiad) if the institution exists solely for educational purposes and its receipts are below the prescribed limit. The CIT(A)'s order was set aside, and the AO was directed to delete the addition.
Key Issues
Whether the assessee is a separate taxable entity; whether it is entitled to exemption u/s 10(23C)(iiiad) without registration u/s 12A/12AA; and whether cash deposits during demonetization constituted taxable business income.
Sections Cited
Section 250, Section 144, Section 10(23C)(iiiad), Section 272B, Section 12A, Section 12AA, Section 11
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Income Tax Appellate Tribunal, GUWAHATI BENCH AT KOLKATA
Before: SRI DUVVURU RL REDDY(KZ) & SRI RAKESH MISHRA
order
: January 10th, 2025 ORDER
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as “the Ld. CIT(A)”] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2017-18 dated 21.04.2023, which has been passed against the assessment order u/s 144 of the Act, dated 05.07.2019.