PUBLIC EDUCATION SOCIETY,BANGALORE vs. DY.DIT, BANGALORE

ITA 664/BANG/2015Status: DisposedITAT Bangalore25 August 2015AY 2011-129 pages
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What did the Tribunal hold?

The Tribunal held that the expression 'such income' in Section 11(1)(a) refers to gross income, not net income after deducting administrative expenditure. Therefore, the assessee was entitled to accumulate 15% of its gross receipts.

What were the facts?

The assessee, an educational society, declared NIL income after applying funds towards its objects, including salaries and acquisition of fixed assets. The Assessing Officer and CIT(Appeals) were of the view that only net income, after deducting revenue expenditure incurred for earning fees, should be considered for accumulation limits.

What were the issues?

Whether 'income' for the purpose of Section 11(1)(a) refers to gross receipts or net income after deducting expenditure incurred for earning such receipts in the case of an educational institution.

Which sections of the Income-tax Act were involved?

Section 11(1)(a),Section 12A

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Income Tax Appellate Tribunal, “SMC” BENCH : BANGALORE

Before: SHRI D. MANMOHAN

For Appellant: Shri P. Prathik, C.A
For Respondent: Shri P.K. Sreehari, Addl. CIT(DR)
Hearing: 25.08.2015Pronounced: 25.08.2015

This appeal by the assessee is directed against the order dated 30.01.2015 passed by the CIT(Appeals)-14, Large Taxpayers Unit, Bangalore and pertains to assessment year 2011-12. 2. The assessee is an educational society and it obtained registration under the provisions of section 12A of the I.T. Act vide registration dated 27.5.2009. For the year under consideration, it filed its return of income wherein NIL income was declared after giving effect to provisions of section 11 of the Act.

3.

The case was taken up for scrutiny. The Assessing Officer noticed that the assessee received gross amount of Rs.2,96,29,585 in the form of tuition fees from students, inter

The order continues below.

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