GURU NANAK MODERN SCHOOL,KANPUR V. AO, NFAC, KANPUR

ITA 393/LKW/2024

AI Insights

The case involves Guru Nanak Modern School, the appellant, contesting decisions made by the Assessing Officer and the Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, regarding the assessment year 2018-19. The primary issues revolved around non-compliance with notices, ex-parte decisions, and the treatment of various receipts and exemptions under sections 11 and 250 of the Income Tax Act. The appellant argued that the CIT(A) and AO were unjustified in their decisions regarding the filing of Form 10B, the treatment of interest on FDRs and savings accounts, and the classification of admission and development fees. However, before the Tribunal could deliberate on these issues, the appellant withdrew the appeal following a settlement under the Direct Tax Vivad se Vishwas Scheme.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315679 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-05-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PUNEET KUMAR
• Assessee Lawyers: RAKESH GARG
• Keywords: Reasonable cause; Capital receipt
• Section: 11; 10B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “B”, LUCKNOW BEFORE SHRI KUL BHARAT, VICE PRESIDENT AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA No.393/LKW/2024 (Assessment Year: 2018-19) Guru Nanak Modern School 79/7, Latouche Road, Kanpur- 208001 (U.P.)(H.O) Guru Nanak Modern School Bthoor Road Kalyanpur, Kanpur-208017. v. Assessing Officer National e-Assessment Centre Income Tax Office, Civic Centre, Minto Road, Delhi/Aayakar Bhawan, 16/69, Civil Lines, Kanpur-208001. PAN:AAATG9956B (Appellant) (Respondent) Appellant by: Shri Rakesh Garg, Adv Respondent by: Shri Puneet Kumar, CIT(DR) Date of hearing: 07 05 2025 Date of pronouncement: 14 05 2025 O R D E R PER KUL BHARAT, VICE PRESIDENT.: This appeal, by the assessee, is directed against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi dated 21.03.2023 pertaining to the assessment year 2018-19. The assessee has raised the following grounds of appeal: - “1. The learned CIT(A),NFAC is not justified to dismiss the appeal on ground of non-compliance of the notices issued u/s 250 as the appellant was prevented by reasonable cause for non-compliance of the notices so issued. 2. The Learned CIT(A), NFAC is not justified in passing the order u/s 250 dated 21.03.2023 ex-parte without stating the points for determination, decision thereon and the reason for decision. 3. The learned CIT(A), NFAC is not justified in disposing of the appeal ex-parte without considering the reply of the assessee furnished before the AO and without making any further enquiry as mandated u/s 250(4) of the Act. 4. The learned CIT(A) as well as learned AO are not justified to confirm and deny the exemption claimed u/s 11 on the ground that Form 10B was not filed before the filing of return of income as Form 108 was filed on 05-03-2020 well before completion of the assessment and filing of Form 10BB instead of Form 10B alongwith return is a technical mistake. ITA No.393/LKW/2024 Page 2 of 3 5. The learned CIT(A) as well as learned AO are not justified to treat the interest over FDRs amounting to Rs 68,73,177/- as revenue receipt instead of capital receipt as the said interest was accrued on FDRs being part of Corpus and the same remained with the bank and no part of it was received by the appellant society during the year under consideration. 6. The learned CIT(A) as well as learned AO are not justified to treat the admission fees and development fees amounting to Rs 6234000/as regular fees instead of one time capital receipts and part of Corpus fund and not the current income of the appellant. 7. The learned CIT(A) as well as learned AO are not justified to treat the interest over saving bank account amounting to Rs 92,682/- as revenue receipt as the said interest was accrued on SB account and remained with the bank and has been directly taken into Corpus and no part of it was received by the appellant society during the year under consideration. 8. The appellant craves leave to add / amend / substitute / modify any ground of appeal at the time of hearing.” 2. At the outset, the Ld. Counsel for the assessee submitted that the dispute has been settled under the Direct Tax Vivad se Vishwas Scheme, 2024 and prayed for withdrawal of the appeal. And a letter dated 15.04.2025 along with Form no. 2 is placed on record. 3. The Learned Departmental Representative has no objection for withdrawal of the appeal. 4. In view of the facts discussed above, we permit the assessee to withdraw this appeal. Accordingly, the appeal is dismissed as withdrawn. However, a liberty is given to the assessee for approaching the Tribunal for restoration of this appeal in the event of failure of settlement of tax disputes. 5. In the result, the appeal of the assessee is dismissed as withdrawn. Order pronounced in the open Court on 14/05/2025. Sd/- Sd/- [ANADEE NATH MISSHRA] [KUL BHARAT] ACCOUNTANT MEMBER VICE PRESIDENT DATED: 14/05/2025 Vijay Pal Singh, (Sr. PS) ITA No.393/LKW/2024 Page 3 of 3 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DR 5. Guard file By order //True Copy// Assistant Registrar "