Vidya Nidhi Education Trust vs. Revenue

Parties Involved

Facts Summary

The assessee, Vidya Nidhi Education Trust, is a Trust running a school and filed the return of income for AY 2019-20 declaring an income of Rs.42,230/-. The Assessing Officer (AO) noticed that the assessee had not submitted the copy of the registration of the Trust, leading to an addition of the Gross Receipt of the Trust to be taxed at maximum marginal rate. The Commissioner of Income Tax (Appeals) (CIT(A)) gave partial relief by directing the AO to make addition on net income basis. The Revenue is in appeal against the order of the CIT(A). The Tribunal dismissed the appeal of the Revenue.…

Legal Issues

• 1. Whether the CIT(A) was correct in directing the AO to assess the income on net basis.
• 2. Whether the Tribunal should remit the issue back to the AO for verification of expenses.

Judgment Outcome

Decided in favour of Revenue.

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