DCIT(Exemption), Circle-1(1), Delhi Vs. Ishan Educational Research Society

Parties Involved

Facts Summary

The assessee, Ishan Educational Research Society, is a charitable society registered under Section 12A and approved under Section 10(23C) of the Income-tax Act, 1961. It filed its return of income for AY 2015-16 declaring Nil income. In AY 2009-10, the assessee set aside Rs. 3.55 crores for extending its building to provide hostel facilities. By AY 2013-14, it utilized Rs. 1,45,61,317/- but could not utilize the remaining Rs. 2,09,38,683/- due to an injunction order by the Delhi High Court. The Assessing Officer reopened the case for AY 2015-16 and sought to tax the unutilized amount. The assessee argued that it could not utilize the funds due to disputes and court cases, and relied on a High Court decision confirmed by the Supreme Court to set off earlier years’ excess expenditure against the unutilized fund.…

Legal Issues

• 1. Whether the ld CIT(A) was justified in holding that the assessee would be liable to tax on the unspent accumulated fund pertaining to AY 2009-10 in AY 2015-16.
• 2. The validity of assumption of jurisdiction u/s 147 of the Act for AY 2015-16.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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