Success Point A Step Towards Your Success Sanstha vs. ITO

Parties Involved

Facts Summary

The assessee, a Charitable Trust imparting education, filed its return of income for the assessment year under dispute claiming exemption under Section 10(23C)(iiiab) of the Income Tax Act, 1961. The Central Processing Centre (CPC) added back Rs. 2,60,136/- to the income of the assessee, treating it as an Association of Persons (AOP) and taxing it at the maximum marginal rate. The assessee appealed against this addition, arguing that it is a charitable institution and the receipts are below the limit of Rs.1.00 crore, thus not requiring approval for exemption. The Tribunal considered the submissions and found that the assessee is a Trust registered under the Rajasthan Public Trust Act and has incurred expenses for earning the receipts. The Tribunal held that the addition made of Rs.2,60,136/- is unsustainable and directed the Assessing Officer to delete the addition.…

Legal Issues

• 1. Whether the addition made of Rs. 2,60,136/- is sustainable?

Judgment Outcome

Decided in favour of Assessee.

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