The Nimar Educational Society, Khandwa vs. CIT(Exemption), Bhopal

Parties Involved

Facts Summary

The Nimar Educational Society, Khandwa, engaged in educational activities, filed its original return of income for the Assessment Year 2017-18 on 07.11.2017, declaring a total income of Rs. 1,16,505/-. Based on information about a cash deposit of Rs. 17,00,000/- in the assessee's bank account, the Assessing Officer (AO) re-opened the assessee's case under section 148. The assessee explained that the deposit was from fees received from students, but the AO made an addition of Rs. 17,00,000/- under section 68. Later, the AO accepted the assessee's explanation and did not make any addition in the second assessment order. The Commissioner of Income Tax (Exemption) (CIT(E)) passed a revision order under section 263, finding the assessment orders erroneous and prejudicial to the interest of revenue. The assessee appealed against this revision order.…

Legal Issues

• 1. Whether the CIT(E) was justified in initiating revision proceedings on the issue of exemption under section 10(23C)(iiiad)?
• 2. Whether the second assessment order dated 16.05.2023 is erroneous?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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