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Facts
The assessee, Netaji Education Society, filed appeals for AY 2014-15 and 2015-16 against orders passed under Section 154 of the Income Tax Act. The lower authorities denied exemption under Section 10(23C), interpreting that income must be received 'on behalf of' a university or educational institution, not directly by the assessee, despite the assessee itself being an educational society running recognized institutions.
Held
The tribunal found no merit in the lower authorities' interpretation, stating that the assessee, as an educational institution running its own recognized institutions, is the direct recipient of the income. Therefore, the tribunal reversed the findings denying the Section 10(23C) exemption to the assessee.
Key Issues
Whether an educational society directly receiving income from its recognized educational institutions is entitled to exemption under Section 10(23C), or if the income must be received 'on behalf of' another institution for the exemption to apply.
Sections Cited
154, 10(23C)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
Asstt. Year : 2014-15 : Asstt. Year : 2015-16 Netaji Education Society, Vs Income Tax Officer(E), S. B. Model School, Bhiwani Road, Aayakar Bhawan, Rohtak, Haryana-124001 Rohtak, Haryana-124001 (APPELLANT) (RESPONDENT) PAN No. AAAAN5577A Assessee by: Sh. Naveen Kumar Goyal, CA Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 23.09.2025 Date of Pronouncement: 23.09.2025 ORDER These assessee’s twin appeals in & 4982/Del/2025 for Assessment Years 2014-15 & 2015-16, arise against the Addl./JCIT(A), Bhubaneswar’s DIN & order No. ITBA/APL/M/250/2025-26/1078487423(1) & 1078488265(1) both dated 15.07.2025, in proceedings u/s 154 of the Income Tax Act, 1961 (in short “the Act”), respectively.
Heard both the parties at length. Case files perused.
It emerges during the course of hearing that the precise question which arises for this tribunal’s apt adjudication herein is that of correctness of the learned lower authorities unanimous findings holding the assessee as not entitled for section 10(23C) exemption on the ground that it had not received income concern “on behalf of” any university or other & 4982/Del/2025 Netaji Education Society educational institution. It is made clear that there is no dispute between the parties that the assessee itself is an educational society which is stated to be running it’s educational institution(s) after due recognition of the concerned regulatory bodies.
That being the clinching factual position, the tribunal hereby see no merit in the learned lower authorities interpretation of the impugned statutory provision once the assessee itself is the recipient of the concerned income since running it’s educational institution. Both the learned lower authorities impugned findings denying the above exception are hereby reverse therefore. Necessary computation shall follow as per law.