Bhagwati Education Society v. The ITO

Parties Involved

Facts Summary

The assessee, Bhagwati Education Society, filed its return of income on 11/08/2017 declaring total income at NIL. The case was selected for compulsory scrutiny. Notices under section 143(2) and 142(1) were issued, and the assessee was asked to justify that the institute is eligible for exemption under section 10(23c)(iiiad) and income shown under the head 'income from other sources' amounting to Rs. 3,47,180/- had been utilized for education purposes. The assessee failed to submit the necessary documents, leading to the assessment proceedings being completed by the Assessing Officer under section 144 by bringing the tax income of Rs. 3,47,180/- and denying the exemption claimed under section 10(23c)(iiiad) of the Act. The assessee carried the matter in appeal before the Commissioner of Income Tax (Appeals), who confirmed the addition made by the Assessing Officer. The assessee is in appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the Assessing Officer erred in concluding the assessment proceedings without considering the appellant's explanation?
• 2. Whether the Commissioner of Income Tax (Appeals) erred in confirming the addition made by the Assessing Officer?

Judgment Outcome

Decided in favour of Assessee.

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