Narayana Educational Society v/s Asstt. Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Narayana Educational Society, filed an appeal against the order passed by the Commissioner of Income Tax (Appeals) for the assessment year 2013–14. The assessee challenged the addition of Rs.1,00,00,000/- under section 69 and the denial of exemption under section 10(23C)(vi) on the addition made under section 69. The assessee is a Public Trust registered under the Bombay Public Trust Act, 1950, and Societies Registration Act, 1860, and runs schools and colleges. A search and seizure operation was conducted at the residential premises of Shri Roshan Diwakar Dhore, and incriminating documents related to the assessee were found. The assessee had entered into an agreement to sell land worth Rs. 3,80,00,000, paying Rs. 1,00,00,000 in cash. The Assessing Officer made an assessment under section 147, determining the total assessed income at Rs. 1,00,00,000 after making an addition of Rs. 1,00,00,000 under section 69. The Commissioner of Income Tax (Appeals) dismissed the assessee’s appeal, confirming the addition made by the Assessing Officer. The assessee appealed to the Income Tax Appellate Tribunal, which set aside the order of the Commissioner of Income Tax (Appeals) and restored the matter to the file of the Commissioner of Income Tax (Appeals) for de novo adjudication on merit.…

Legal Issues

• 1. Whether the Assessing Officer was justified in making an addition of Rs.1,00,00,000/- under section 69.
• 2. Whether the Assessing Officer erred in not allowing the exemption under section 10(23C)(vi) on the addition made under section 69.

Judgment Outcome

Decided in favour of Assessee.

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