Smt. Ashrafi Devi Shiksha Samiti Vs. Income Tax Officer

Parties Involved

Facts Summary

The appellant, Smt. Ashrafi Devi Shiksha Samiti, a Society registered under the Society Registered Act, 1860, running an educational institution named ‘Niranjan Institute of Education Technology,’ filed its Income Tax Return for the relevant year declaring Nil income. During processing, the Assessing Officer (AO) proposed an adjustment/addition of Rs. 77,43,697/- on the grounds that the assessee was not registered under section 12A of the Income Tax Act and thus could not claim benefits under sections 11 & 12 of the Act. The assessee claimed exemption under section 10(23C)(iiiad) of the Act, but the AO did not entertain this new claim. Consequently, the AO enhanced the income by Rs. 77,43,697/-. The assessee then filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)], which was dismissed. The assessee further argued that it obtained approval under section 10(23C)(i) of the Act for the relevant year, making its entire income exempt.…

Legal Issues

• 1. Whether the adjustment of Rs. 77,43,697/- can be done in the processing of ITR under section 143(1) of the Act in the absence of approval under section 12A and 10(23C)(i) read with 10(23C)(vi) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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