Jermel's Accademy Vs. ITO, Ward-1(4), Siliguri

Parties Involved

Facts Summary

The assessee, Jermel's Accademy, a trust running a co-educational school affiliated with CBSE, had made cash deposits amounting to Rs. 3,20,49,890/-. Based on this, proceedings under section 147 of the Income Tax Act, 1961 were initiated, and a notice under section 148 was issued. The assessee claimed that the cash deposits were fees collected from students, totaling Rs. 4,01,50,550/-. The assessee claimed exemption under section 11(1)(A) amounting to Rs. 3,98,75,551/-. However, the Assessing Officer disallowed the exemption due to the lack of documentary evidence proving the application for exemption was pending with the competent authority. The assessee had obtained provisional registration under section 12A on 30.08.2021 but did not file a return of income for the year under consideration.…

Legal Issues

• 1. Whether the Ld. CIT(A) was justified in denying the exemption of Rs. 3,98,75,551/- claimed by the assessee under section 11(1).
• 2. Whether the Ld. CIT(A) erred in not considering the provisional registration for exemption.
• 3. Whether section 12A(ba) was applicable to the assessee for the assessment year 2016-17.
• 4. Whether the total receipts should be considered as total income or only the surplus after expenses.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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