MATA LALTI DEVI FOUNDATION,ARA V. ITO, WARD- 1 (4), ARA

ITA 411/PAT/2025

AI Insights

Mata Lalti Devi Foundation appealed against the order of the CIT (A), which had assessed the entire gross receipts of the trust as income for the assessment year 2021-22. The trust argued that as an educational institution, it is exempt under Section 10(23C)(iiid) of the Income Tax Act, and thus, the gross receipts should not be taxed if they are below INR 1 crore. The CIT (A) had dismissed this claim, citing that it was not raised in the original return. However, the Tribunal found that the claim was valid and could be considered at the appellate stage, referencing the Supreme Court's decision in Goetze (India) Ltd. v. CIT.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 789066 (ITAT-PATNA)
• Duration Of Justice: 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 08-09-2025
• Other Referred Cases: Goetze (India) Ltd. v. Commissioner of Income Tax (CIT) 284 ITR 323 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHWANI KR. SINGAL
• Assessee Lawyers: MANISH RASTOGI
• Keywords: Set aside

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “PATNA” BENCH, PATNA BEFORE SHRI DUVVURU RL REDDY, VP AND SHRI RAJESH KUMAR, AM ITA No. 411/PAT/2025 (Assessment Year: 2021-22) Mata Lalti Devi Foundation Vishwakarma Kumar, C/o Sunil Kumar Mayor, Pratap Bhawan, goriya Toli, Anaith, Ara, Arrah, Bihar-802301 Vs. ITO, Ward 1(4) Income Tax Office, Katira More, Ara, Arrah, Bihar-802301 (Appellant) (Respondent) PAN No. AAETM1211H Assessee by : Shri Manish Rastogi, AR Revenue by : Shri Ashwani Kr. Singal, DR Date of hearing: 24.11.2025 Date of pronouncement: 28.11.2025 O R D E R Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the CIT (A), ADDL/JCIT(A)-1, Lucknow (hereinafter referred to as the “Ld. CIT(A)”] dated 08.10.2024 for the AY 2021-22. 2. At the outset, we note that the appeal of the assessee is barred by limitation by 244 days. At the time of hearing the counsel of the assessee explained the reasons for delay in filing the appeal. The Ld. D.R did not raise any objection in condoning the delay. After hearing the rival contentions and perusing the materials available on record, we find that the delay is for bonafide and genuine reasons, hence, we condone the delay and admit the appeal for adjudication. Printed from counselvise.com Page | 2 ITA No.411/PAT/2025 Mata Lalti Devi Foundation A.Y. 2021-22 3. At the time of hearing, the ld. Counsel for the assessee submitted that the assessee was incorporated on 05.03.2014 and interalia is engaged in running a high school affiliated by CBSE vide affiliation dated 26.11.2018. The assessee filed the return of income on 31.12.2021, showing total receipt at ₹96,43,153/-. The said return was processed u/s 143(1) of the Act vide intimation u/s 143(1) of the Act dated 23.08.2022, assessing the entire gross receipt as income of the assessee and determined the taxable income at ₹96,43,153/-, after disallowing the entire application of funds to the tune of ₹96,48,618/-. The assessee has raised two issues before us one is that since the assessee is an educational institutions income is exempted u/s 10(23C)(iiiad) of the Act and is not required to get registered under the Act. It was also submitted that the assessee trust is required u/s 10(23)(vi) of the Act to be registered if turnover is above Rs. 1.00 Crore for the year under consideration, however the gross receipt of the trust was ₹96,43,153/- 3.1. In the appellate proceedings, the learned CIT (A) dismissed the plea of the assessee on the ground that original return of income, the assessee has not made any claim under qua this exemption and this is an alternative submission made by the assessee during the course of appellate proceedings which cannot be entertained by relying on the decision of Goetze (India) Ltd. v. Commissioner of Income Tax (CIT) 284 ITR 323 (SC). After hearing the rival contentions and perusing the materials available on record, we find that the assessee has not made any claim u/s 10(23C)(iiid)of the Act in the return of income filed for the instant assessment year. In our considered view even though the assessee has not claimed as such, but in the appellate proceedings there is no Printed from counselvise.com Page | 3 ITA No.411/PAT/2025 Mata Lalti Devi Foundation A.Y. 2021-22 bar in taking any additional claim and the assessee is entitled to take this plea in the appellate proceedings and in the appellate proceedings the appellate authority can adjudicate the issue as has been held in the case of Goetze (India) Ltd. (supra). Therefore, the ratio laid down by the Hon'ble Apex Court has wrongly been interpreted by the learned CIT (A). The plea taken before us by the Counsel of the assessee is as per the law and therefore fully maintainable. Accordingly, in our opinion, the assessee’s trust is not required to be registered in order to claim exemption of income from any educational activity if the gross receipt does not exceed ₹1 crores inconformity with the provisions of Section 10(23C)(iiid) of the Act. Therefore, we are inclined to set aside the order of learned CIT (A) and direct the learned AO to delete the addition. 3.2. The second plea raised by the assessee that it is only the net income which is to be assessed to tax and not the gross receipt as has been done by the learned AO. Even this argument of the assessee trust is fully meritorious. We even opine that net income of the assessee as computed after allowing deduction of expenses incurred is to be assessed as income. But since, we have allowed the main plea of the assessee, therefore, we are not adjudicating this alternative submission of the assessee. 4. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 28.11.2025. Sd/- Sd/- (DUVVURU RL REDDY) (RAJESH KUMAR) (VICE PRESIDENT) (ACCOUNTANT MEMBER) Patna, Dated: 28.11.2025 Printed from counselvise.com Page | 4 ITA No.411/PAT/2025 Mata Lalti Devi Foundation A.Y. 2021-22 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Patna 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. Printed from counselvise.com "