Airaa Academy Educational Trust, Bangalore V. Principal Commissioner Of Income Tax (Exemption), Bangalore

ITA 228/BANG/2021

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 7283 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Appeal Filed On: 27-05-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHI MISHRA
• Assessee Lawyers: VALISHA SHAKEEL
• Section: 10(23C)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES “B” BENCH: BANGALORE BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SMT BEENA PILLAI, JUDICIAL MEMBER ITA. No. 228/Bang/2021 Assessment Year: 2020-21 M/s. Airaa Academy Educational Trust, No. 55/7/8, Hemmigepura Village, Kengeri Hobli, Bangalore – 560 060. PAN: AAGTA7628G vs. The Principal Commissioner of Income tax (Exemption), Bangalore. (Appellant) (Respondent) Assessee by : Shri A R Valisha Shakeel, CA Revenue by : Shri Priyadarshi Mishra, Addl. CIT (DR) Date of Hearing : 05.11.2021 Date of Pronouncement : 30.11.2021 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal is filed by assessee against order dated 01/04/2021 passed by the Ld.CIT(E), Bangalore for assessment year 2020-21. Brief facts of the case are as under: 2. Assessee is an educational trust, with an object of running Montessori centers, school, colleges, polytechnics and other educational institutions including vocational training centers, Page 2 of 4 ITA No. 228/Bang/2021 research centers. Presently the trust is running only a school from Grade I to Grade VIII with CBSC Syllabus. The assessee filed Form 56 as per rule 2C read with section 10(23C) of the Income tax Act, 1961 for the Assessment Year (AY.) 2020-21 electronically on 30 th March 2020. During the course various documents as called for examination were submitted by authorized representative on 19 th March 2021. The CIT(E) Bangalore passed an order under section 10(23C)(vi) and (via) of the Income Tax Act by rejecting application filed by the assessee for exemption. Following were reasons for rejecting the application:  In proforma report column 7 the AO stated that details are a per Annexure “A” however no such annexure enclosed.  In column 9(c) the AO stating that no other receipts from any business incidental to object of trust. However, it is seen that assessee is showing receipts from canteen and Transportation.  Further, as per clause 10(d) the AO stated that no discretionary power vested in any trustee for utilization of fund. However, as per trust deed clause 6(f) it is stated that "The other Trustee shall not be entitled to participate in this decision-making process”.  Further, as per clause 6(l) it is stated that "Notwithstanding anything contained herein the following matters shall require Amitha's prior written approval.  Further last para of this clause and clause 7 sub clause iii mention about clause 6(m), which is not part of the Trust Deed. Page 3 of 4 ITA No. 228/Bang/2021  Further, the Addl. C1T has stated that grant of Registration u/s 10(23C) (vi) the receipt should be above 1 crore. On verification of details enclosed with the report of AO, it is found that the receipt, of the trust are less than 1 crore except for F.Y. 2019-20. Moreover, this is only second year which is audited, it is pertinent to mention that as per rule 2BC the amount for sub clause (vi) of clause 23C of section 10 is enhanced to Rs. 5 crores from 01/04/2021. The Ld.AR submitted that the receipts of the trust is more than 5 crores for F.Y. 2020-21 which has not been considered by the Ld.CIT(E). We have considered the submissions of both sides. We note that the submissions regarding receipt exceeding Rs. 5 Crores has not been verified by the Ld.CIT(E). We therefore remand this issue back to Ld.CIT(E) to verify the same and consider the application dt. 30.03.2020 in accordance with law. Needless to say that proper opportunity of being heard must be granted to assessee. Accordingly, grounds raised by the assessee is allowed for statistical purposes. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in open court on 30 th November, 2021. Sd/- Sd/- (B.R. BASKARAN) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 30 th November, 2021. /MS/ Page 4 of 4 ITA No. 228/Bang/2021 Copy to 1. The Appellant 2. The Respondent 3. CIT(A) 4. Pr. CIT 5. DR, ITAT, Bangalore. 6. Guard File By order Assistant Registrar Income-tax Appellate Tribunal Bangalore