ABM SENIOR SECONDARY PUBLIC SCHOOL SOCIETY, PALAMPUR,PALAMPUR V. INCOME TAX OFFICER (EXEMPTIONS) WARD, SOLAN, SOLAN

ITA 467/CHANDI/2025

AI Insights

The case involves ABM Senior Secondary Public School Society, which appealed against the order of the CIT (A) concerning the assessment year 2015-16. The AO had made an addition of Rs. 59,50,000 to the assessee's income, considering it an interest-free rent advance to specified persons, which the Tribunal later found unjustified. The CIT (A) had deleted part of this addition but confirmed the balance. The Tribunal, after reviewing the records and applicable sections of the Income Tax Act, concluded that the assessee was wrongly assessed under Section 11(5) as their receipts were below the threshold limit, leading to the allowance of the assessee's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775834 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 28-03-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: ASHWANI KUMAR

Judgement Text

"आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 467/CHD/2025 Ǔनधा[रण वष[ / Assessment Year: 2015-16 ABM Senior Secondary Public School Society, Thakurdwara Maranda, Palampur (Distt. Kangra). Vs The ITO (Exemptions), Ward, Solan. èथायी लेखा सं./PAN NO: AAATA3648L अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Assessee by : Shri Ashwani Kumar, C.A. Revenue by : Shri Vivek Vardhan, Addl. CIT Sr.DR Date of Hearing : 02.09.2025 Date of Pronouncement : 10.09.2025 PHYSICAL HEARING O R D E R PER RAJ PAL YADAV, VP The assessee is in appeal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 28.02.2025 passed for assessment year 2015-16. 2. With the assistance of ld. Representative, we have gone through the record carefully. It emerges out from the record that assessee has filed its return of income on 24.08.2015 Printed from counselvise.com ITA No.467/CHD/2025 A.Y.2015-16 2 declaring ‘nil’ income. The case of the assessee was selected for scrutiny assessment and a notice u/s 143(2) of the Act was issued. According to the AO, a perusal of the record would reveal that assessee has given interest free rent advance to specified persons amounting to Rs.59,50,000/-. Hence, he was of the view that this advance rent ought to have not been given by the assessee and the Faceless Assessment Unit made an addition of Rs.59,50,000/-. 3. On appeal, CIT (Appeals) has deleted the addition to the extent of Rs.20,64,000/- and confirmed the addition of the balance amount i.e. Rs.38,86,000/-. 4. A perusal of the record would reveal that assessee is a Society engaged in educational activity. It is running a school upto 12th standard affiliated to Himachal Pradesh Board of School Education. Its gross receipts did not exceed One Crore of rupees and therefore, it is entitled for total exemption u/s 10(23)(iii)(d) of the Act. The AO was not empowered to invoke Section 11(5) or rake up this issue. Had the assessee crossed threshold limit of Rs.One Crore, then these aspects are to be looked into. The CIT (Appeals) has erred in Printed from counselvise.com ITA No.467/CHD/2025 A.Y.2015-16 3 confirming the part addition. Accordingly, we allow the appeal of the assessee and delete the additions made by the AO as well as partly confirmed by the ld. CIT (Appeals). 5. In the result, appeal of the assessee is allowed. Order pronounced on 10.09.2025. Sd/- Sd/- (KRINWANT SAHAY) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश कì ÿितिलिप अúेिषत/ Copy of the order forwarded to : 1. अपीलाथê/ The Appellant 2. ÿÂयथê/ The Respondent 3. आयकर आयुĉ/ CIT 4. िवभागीय ÿितिनिध, आयकर अपीलीय आिधकरण, चÁडीगढ़/ DR, ITAT, CHANDIGARH 5. गाडª फाईल/ Guard File सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "