SHRI CHANDRA BHAN SINGH SIKCHA SAMITI ,AGRA V. ITO,WARD 2(1)(4), AGRA

ITA 170/AGR/2024

AI Insights

The case involves Shri Chandra Bhan Singh Sikcha Samiti, an educational institution, appealing against the order of the National Faceless Appeal Centre (NFAC) which confirmed an addition of income during the assessment year 2017-18. The primary contention was that the institution, which runs various educational courses and is registered under the Society Registration Act, 1860, received fees in cash which were deposited during the demonetisation period. The Assessing Officer (AO) and NFAC considered these deposits as income without accounting for the expenses. The Tribunal found that the NFAC had not adequately verified whether the institution's gross receipts exceeded Rs 5 crores, which is crucial for determining eligibility for tax exemption under section 10(23C)(iiiad) of the Income Tax Act, 1961. Consequently, the Tribunal restored the matter to NFAC for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470229 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHALENNDRA SRIVASTAVA
• Keywords: Opportunity of being heard
• Section: 144; 10(23C)

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL AGRA BENCH “DB”: AGRA SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER (Through virtual hearing) ITA No. 170/AGR/2024 (Assessment Year: 2017-18) Shri Chandra Bhan Singh Sikcha Samiti, Village-Mukhari, Post Gadshan, The-Kheragar, Agra-283124 Vs. ITO, Ward-2(1)(4), Agra (Appellant) (Respondent) PAN: AAFAS8963E Assessee by : None Revenue by: Shri Shalenndra Srivastava, Sr. DR Date of Hearing 05/02/2025 Date of pronouncement 05/02/2025 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.170/AGR/2024 for AY 2017-18, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as „ld. NFAC‟, in short] dated 29.02.2024 against the order of assessment passed u/s 144 of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟) dated 14.11.2019 by the Assessing Officer, ITO, Ward-2(1)(4), Agra (hereinafter referred to as „ld. AO‟). 2. The assessee has raised the following grounds of appeal before us:- “1. That the Ld. AO and NFAC both have erred in law as well as on facts while making addition ignoring the fact that the assessee is an educational institution and exempted from taxis 10623Cd). The ave runs various courses like High School, Senior Secondary School, Degree College etc. All courves nums under name of Shri Chandrabhan Singh Sikhska Samiti, hence all the ITA No. 170/AGR/2024 Shri Chandra Bhan Singh Sikcha Samiti Page | 2 fees received from different sourses deposited in the account of Shri Chandrabhan Singh Siksha samiti. 2. That the learned AO and NFAC both erred on the facts that the assessee is an education institution, in which generally fees are received by the assessee in cash. The Learned AD and NFAC both considered the cash deposited during the Demonetisation period as income of the Assessee without considering the expenses out of It. All payments made from banks were out of the fees received in cash. 3. That NFAC have erred by confirming the addition of Rs. 63,30,500 while the addition as per original assessment order was Rs. 63,30,000. 4. That for the reasons discussed above and to be argued at the time of hearing, appellant pray for relief 5. That till the disposal of appeal, the appellant hereby prays for the stay of recovery of demand. 6. That The appellant craves leave to add or amend any grounds of appeal.” 3. None appeared on behalf of the assessee. We have heard the Ld DR and perused the materials available on record. The assessee is running an educational institution and claims exemption u/s 10(23C)(iiiad) of the Act. The assessee is a society registered under the Society Registration Act, 1860. It is primarily an educational institution and runs school upto 12th Standard and affiliated to U P Board. It also runs college (Mahavidyalaya) affiliated to Dr B R Ambedkar University, Agra and runs the courses of BA, BSc, B.Com, B.Ed etc. The assessee pleaded that fees received from offering different courses in the education stream were deposited in the bank accounts of the assessee. On perusal of the order of the ld NFAC, we find that the ld NFAC had merely reproduced the provisions of section 10(23C) of the Act fully and held that assessee had not produced evidence to prove whether its gross receipts exceed Rs 5 crores so as to claim exemption u/s 10(23C)(iiiad) of the Act. These facts could be easily verified from the income tax return of the assessee itself dehors the presence of the assessee. ITA No. 170/AGR/2024 Shri Chandra Bhan Singh Sikcha Samiti Page | 3 Hence in our considered opinion, the presence of the assessee before the ld NFAC does not alter the basic position of the assessee that it is an educational institution. The dispute before us had to be resolved based on the verification of actual figure of gross receipts. If the gross receipts are less than Rs 5 crores, then the assessee would be eligible for automatic exemption u/s 10(23C)(iiiad) of the Act. Otherwise, the case had to be decided on merits. Hence in the interest of justice and fairplay, we deem it fit and appropriate to restore this appeal to file of ld NFAC for de novo adjudication in accordance with law. Needless to mention the assessee be given reasonable opportunity of being heard. The assessee is directed to cooperate with ld NFAC for expeditious disposal of the appeal by not taking unwarranted adjournments. Hence, the grounds raised by the assessee are allowed for statistical purposes. 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 05/02/2025. -Sd/- -Sd/- (SATBEER SINGH GODARA) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 05/02/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "