St. Peters School vs ITO, Ward-2(1), Exemption, Durgapur

Parties Involved

Facts Summary

St. Peters School, a charitable institution engaged in providing education, filed its return of income for the assessment year 2018-19 declaring nil income. The assessee operates under section 10(23C)(vi) of the Income Tax Act and enjoys the status of an educational institution exempt from income tax. The assessee's return was selected for scrutiny, and the Assessing Officer (AO) disallowed depreciation claimed by the assessee under section 11(6) of the Act, which disallows depreciation of assets when their cost has already been treated as an application of income for charitable purposes. The AO levied a penalty under section 270A of the Act for misreporting income, which the assessee appealed against. The Commissioner of Income-tax (Appeals) dismissed the appeal, leading to the present appeal before the Tribunal.…

Legal Issues

• 1. Whether penalty u/s. 270A(9) of the Act was rightly levied for the assessee's claim of depreciation.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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