ARYA SHIKSHA MANDAL,JALANDHAR vs. INCOME TAX OFFICER WAD ( EXEMPTIONS), JALANDHAR

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR. BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER

I.T.A. No.126/Asr/2022 Assessment Year: 2017-18

Arya Shiksha Mandal, KMV Vs. DCIT, CPC, Campus, Tanda Road, Bangalore. Jalandhar. [PAN:-AAAAA8052D] (Respondent) (Appellant)

Appellant by Sh. Y.K. Sud, CA Respondent by Ms. Amanpreet Kaur, Sr.DR.

Date of Hearing 20.09.2022 Date of Pronouncement 22.09.2022

ORDER Per:Anikesh Banerjee, JM:

The instant appeal was filed by the assessee against the order of the ld. Commissioner of Income Tax(Appeals), NFAC, Delhi, [in brevity the CIT(A)]

bearing appeal no.DIN & Order No. ITBA/NFAC/S/250/2022-23/1042942472(1), date of order 04.05.2022, the order passed u/s 250(6) of the Income Tax Act 1961,

I.T.A. No.126/Asr/2022 2

[in brevity the Act] for A.Y. 2017-18.The impugned order was originated from the

order of the DCIT, CPC, (in brevity the AO) order passed u/s 143(1) of the Act

date of order 16.07.2019. 2. The brief fact of the case is that the assessee is an educational trust and

running schools about 125 years. The assessee trust has been regularly filing its

return by claiming exemption u/s 10(22) of the Act. And after the abolition of

section 10(22) the trust has been filing its return by claiming exemption u/s

10(23C) (iiiad) of the Act and his exemption was duly allowed by the department.

During the assessment year under appeal the assessee filed a return u/s 139(1) and

wrongly claiming exemption u/s 11. The return was processed u/s 143(1) and

disallowance of exemption u/s 11. The gross receipt of the assessee is below 1

crore for the assessment year 2017-18. So, the assessee is eligible for claiming

exemption u/s 10(23C) (iiiad). The assessee rectified the intimation u/s 143(1) and

informed that the assessee is only eligible exemption as an educational trust. But

the ld. AO had not considered the assessee’s plea. The assessee filed an appeal

before the ld. CIT(A). The ld. CIT(A) upheld the order of the ld. AO.

I.T.A. No.126/Asr/2022 3

informed that the assessee is an educational trust and for this assessment year the

turnover is below Rs.1 crore. The assessee also registered u/s 12AA of the Act.

The assessee is eligible for exemption u/s 10(23C)(iiiad) of the Act. During

processing of the return the ld. AO rejected the assessee’s claim u/s 11. The same

issue was agitated before the ld. CIT(A). The ld. CIT(A) did not consider the

submission of the assessee. Prayer was made before the CIT(A) for considering the

exemption U/s. 10(23C)(iiiad) related the assessment year. In this respect the ld.

Counsel for the assessee filed a written submission on 16.09.2022 before the bench

which is kept in the record.

authorities.No other contrary view was placed before the bench.

record. The ld. Counsel for the assessee relied on the order of the ITAT, Cochin Bench in the case of AL-Farook Educational Centre vs. ITO’, (2009) 124

TTJ(Coch) 286. Mr. Sud respectfully relied on the para 11 of the said order which

is extracted as below:-

I.T.A. No.126/Asr/2022 4

“11. When the law provides exemption on general terms and on specific terms, provisions applicable for specific purpose must be applied to specific institutions even though general provisions also may support the case. Here in the present appeal, the assessee is an educational center i.e. a specific activity even though in the nature of charitable activity. A specific provision of law is available under section 10(23C)(iiid) for the benefit of the educational institutions. Therefore, more appropriately, the assessee is entitled for claiming exemption under section 10(23C)(iiid). If the activities carried on by the assessee are only educational activities, the assessee is covered by section 10(23C)(iiid). The specific function carried on by the assessee is covered by equally specific provision of law and in such circumstances, the assessee is not supposed to take shelter under section 11.”

I.T.A. No.126/Asr/2022 5

exemption u/s 10(23C) (iiiad) are that running the educational institution and the

turnover should be below Rs. 1 crore. The assessee accumulated both the

conditions for getting exemption u/s 10(23C) (iiiad). We set aside the order of the

ld. CIT(A). The addition made by the ld. AO amount of Rs.1,65,622/- u/s 143(1) is

liable to be quashed. Accordingly, the appeal of the assessee is allowed.

Order pronounced in the open court on 22.09.2022

Sd/- Sd/-

(Dr. M. L. Meena) (ANIKESH BANERJEE) Accountant Member Judicial Member

AKV Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T.