SHANTHINIKETAN EDUCATIONAL AND CULTURAL SOCIETY,TRIVANDRUM V. INCOME TAX OFFICER, OFFICE OF THE INCOME TAX OFFICER

ITA 448/COCH/2024

AI Insights

The case involves the Shanthiniketan Educational and Cultural Society, a trust engaged in educational activities, which appealed against the order of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2017-18. The trust had filed a return claiming exemption under section 10(23C)(vi) of the Income Tax Act, 1961, disclosing nil income after claiming an exemption of Rs. 1,20,68,745. The Income Tax Officer disallowed this claim due to the lack of approval from the specified authority, which was a condition precedent for the exemption. The trust's subsequent appeal to the CIT(A) was unsuccessful, leading to the present appeal before the Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669160 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: GOVIND G.NAIR
• Keywords: Charitable institution
• Section: 143(3); 12A; 2

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI PRAKASH CHAND YADAV, JM ITA No. 448/Coch/2024 Assessment Year: 2017-18 Shanthiniketan Educational and .......... Appellant Cultural Society Tagore Nagar, Vazhuthacaud, Trivandrum 695014 [PAN: AAHTS2006F] vs. ITO, Ward - 1(3), Thiruvananthapuram .......... Respondent Appellant by: Shri Govind G. Nair, Advocate Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 29.05.2025 Date of Pronouncement: 24.06.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 26.03.2024 for Assessment Year (AY) 2017-18. 2. Brief facts of the case are that the appellant is a trust formed with the object of imparting education. The appellant is running a school affiliated to Central Board of Secondary Education, New Delhi. The return of income for AY 2017-18 was filed on 26.10.2017 disclosing Nil income after claiming exemption u/s. 2 ITA No. 448/Coch/2024 Shanthiniketan Educational and Cultural Society 10(23C)(vi) of the Income Tax Act, 1961 (the Act) of Rs. 1,20,68,745/-. Against the said return of income, the assessment was completed by the ITO, Ward 1(3), Thiruvananthapuram (hereinafter called \"the AO\") vide order dated 27.12.2019 passed u/s. 143(3) of the Act at a total income of Rs. 1,23,02,490/-. While doing so, the AO had disallowed the claim u/s. 10(23C)(vi) of the Act for want of requisite approval from the specified authority. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO. 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. The learned counsel for the assessee submitted before us that the application for approval was filed before the Commissioner of Income Tax (Exemption) u/s. 10(23C)(vi) of the Act and till now approval was not received by the appellant. It is further submitted that the appellant trust was granted registration u/s. 12A of the Act on 24.04.2023. Thus, he submitted that the income is exempt from tax. 6. On the other hand, the learned Sr. DR submits that the order passed by the CIT(A) is a very reasoned one and in the absence of approval u/s. 10(23C)(vi) exemption cannot be granted. 7. We have heard the rival contentions and perused the material available on record. The appellant is a charitable trust formed with 3 ITA No. 448/Coch/2024 Shanthiniketan Educational and Cultural Society the object of imparting education. Admittedly, the appellant was not granted approval u/s. 10(23C)(vi) of the Act nor granted registration u/s. 12A of the Act for the year under consideration. In the absence of requisite approval the claim for exemption of income cannot be allowed as it is a condition precedent that approval u/s. 10(23C)(vi) is mandatory. We, therefore, do not find any merit in the appeal filed by the assessee. 8. In the result, the appeal filed by the assessee stands dismissed. Order pronounced in the open court on 24th June, 2025. Sd/- Sd/- (PRAKASH CHAND YADAV) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 24th June, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "