ABHYUDAYA EDUCATIONAL SOCIETY Vs. THE INCOME TAX OFFICER

Parties Involved

Facts Summary

The assessee society, which is running a degree college, had filed its return of income for the assessment year 2018-19 on 31.03.2019, declaring an income of Rs. Nil. The return of income was processed by the AO/CPC under Section 143(1) of the Act, wherein the impugned exemption claimed by the assessee society under Section 10(23C)(iiiad) of the Act was disallowed, and its income was determined at Rs. 23,30,445/-. Aggrieved, the assessee society carried the matter in appeal before the CIT(Appeals), but without success. The assessee society, aggrieved with the CIT(A) order, has carried the matter in appeal before the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the order of the learned ADDL/JCIT (Appeals) -2, Ahmedabad is contrary to the facts of the case and the law applicable to the facts of the case.
• 2. Whether the learned ADDL/JCIT (Appeals) failed to appreciate that the appellant claimed exemption u/s 10(23C)(iiiad) of the Act but not u/s 11 and thus erroneously held that the CPC rightly disallowed the exemption u/s 11 of the Act.
• 3. Whether the learned ADDL/JCIT (Appeals) ought to have held that the disallowance of exemption claimed u/s 10(23C) of the Act is outside the scope of adjustments that can be made in the Intimation u/s 143(1) of the Act.
• 4. Whether the learned ADDL/JCIT (Appeals) ought to have deleted the addition of Rs.23,30,445 made towards disallowance of exemption claimed by appellant u/s 10(23C) of the Act.
• 5. Whether the learned ADDL/JCIT (Appeals) is not justified in not directing the CPC to allow the deduction for the expenditure of Rs.51,38,399 incurred by the appellant.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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