Holy Family School vs Income Tax Officer (Exemption)

Parties Involved

Facts Summary

The assessee, Holy Family School, is a Public Trust registered in 1955 under the Maharashtra Public Trusts Act, 1950, and enjoys approval under section 12A(a) and section 80G of the Income-tax Act, 1961. The school runs 'Holy Family High School' and has been claiming exemption under section 11 of the Act. The statutory audit of the accounts was completed beyond the prescribed time limit, and the return of income for AY 2012-13 was filed belatedly on 30.04.2019. The Assessing Officer (AO) completed the assessment under section 143 read with section 147 of the Act, determining the total income at Rs. 68,29,660/- by disallowing certain expenditures and denying exemption under section 11. The AO held that the rental income from the use of the school's hall, classrooms, and ground amounted to 'advancement of any other object of general public utility,' thus denying the exemption. The assessee appealed this decision, which was upheld by the Commissioner of Income Tax (Appeals) (CIT(A)). The assessee then filed an appeal before the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the rental income from letting out the hall, classrooms, and ground is incidental to the main object of promoting education.
• 2. Whether the proviso to section 2(15) of the Act applies to deny exemption under section 11.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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