SHRI KAMAL NATH SINGH SHIKSHA SANSTHAN,AZAMGARH V. DC/ACIT - 3, AZAMGARH

ITA 8/VNS/2024

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The case involves Shri Kamalnath Singh Shiksha Sansthan, which operates two educational institutions in Uttar Pradesh. The institutions' gross receipts for the assessment years 2015-16 and 2016-17 were below Rs. 1 Crore individually but exceeded Rs. 1 Crore when combined. The Assessing Officer and the CIT(A) denied the exemption under Section 10(23C)(iiiad) of the Income Tax Act, which the institution appealed. The Tribunal, referencing a Karnataka High Court decision, ruled that the income limit should be applied to each institution separately, thus granting the exemption.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473598 (ITAT-VARANASI)
• Duration Of Justice: 8 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 12-09-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 19-01-2024
• Other Referred Cases: CIT vs. Childrens Education Society (2013) 34 taxmann.com 285
• Laws Referred To: Section 10(23C)(iiiad) of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA MEENA
• Assessee Lawyers: ARVIND SHUKLA
• Keywords: Set aside

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, VARANASI BEFORE: SHRI B.R. BASKARAN, ACCOUNTANT MEMBER & SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA No.8/VNS/2024 & 9/VNS/2024 (Assessment Year :2015-16 & 2016-17) Shri Kamalnath Singh Shiksha Sansthan Barohi, Fatehpur Sagari, Azamgarh – 276 121 Uttar Pradesh Vs. DC/ACIT, Azamgarh Uttar Pradesh PAN/GIR No.AAKAS3571K (Appellant) .. (Respondent) Assessee by Shri Arvind Shukla, Advocate Revenue by Smt. Kavita Meena, Sr. DR Date of Hearing 12/09/2024 Date of Pronouncement 15/10/2024 आदेश / O R D E R PER B.R. BASKARAN (A.M): The assessee has filed these appeals challenging the orders passed by ld. CIT(A), NFAC, Delhi and they relate to A.Yrs.2015-16 & 2016-17. 2. Since the issues urged in both these appeals are identical in nature, they were heard together and are being disposed of by this common order for the sake of convenience. ITA No.8&9/VNS/2024 Shri Kamal Nath Singh Shiksha Sansthan 2 3. The only issue agitated in these appeals is whether assessee is eligible for exemption u/s.10(23C) of the Act. 4. The assessee is running two educational institutions and the gross receipts for each of the institution in the two years under consideration were less than Rs.1 Crore as detailed below:- GROSS RECEIPTS Sr.No. Name & Institution A.Y.2015-16 A.Y.2016-17 1. K.N. Singh Mahila Maha Vidyalaya 87,15,125 67,33,832 2. K.N. Singh Degree College 82,18,314 57,83,745 Total 1,69,33,439 1,25,17,577 As per the provisions of Section 10(23C)(iiiad) of the Act any income received by any person on behalf of any University or other educational institution existing solely for educational purposes and not for the purposes of profit is exempt, if the aggregate annual receipts do not exceed the prescribed amount. The Government has prescribed a sum of Rs.1 Crore for these two years under consideration. Since the aggregate amount of gross receipts for each of the institutions did not exceed Rs.1 Crore, the assessee claimed exemption of the same u/s 10(23C)(iiiad) of the Act. However, since the ITA No.8&9/VNS/2024 Shri Kamal Nath Singh Shiksha Sansthan 3 aggregate amount of receipts both the institutions together has exceeded the limit of Rupees One crore, the AO/CPC rejected the claim of exemption u/s.10(23C)(iiiad) and the same was confirmed by the ld. CIT(A) in both the years under consideration. 5. We heard both the parties and perused the record. We noticed that this issue is covered by the decision rendered by the Hon’ble High Court of Karnataka in the case of CIT vs. Childrens Education Society (2013) 34 taxmann.com 285. In the above said case, the above said assessee was running 28 educational institutions and the gross receipts in respect of each institution did not exceed prescribed limit of Rs.1 Crore. The Hon’ble High Court held that the prescribed limit of Rs.1 Crore has to be applied to each of the educational institutions separately and if the receipt of any of the educational institution did not exceed the prescribed limit of Rs.1 Crore, the same would be exempted u/s.10(23C)(iiiad) of the Act. 6. Accordingly, following the above said decision of Hon’ble Karnataka High Court, we hold that the assessee is eligible for claim of exemption u/s.10(23C)(iiiad) of the Act, since gross receipts of each of the institutions did not exceed prescribed limit of Rs. 1 Crore in both the years under consideration. Accordingly, we set aside the order passed by the ld. CIT(A) in both the years and direct the AO to allow exemption u/s.10(23C)(iiiad) of the Act to the assessee in both the years under consideration. ITA No.8&9/VNS/2024 Shri Kamal Nath Singh Shiksha Sansthan 4 7. In the result, both the appeals filed by the assessee are allowed. Order pronounced on 15/10/2024 by way of proper mentioning in the notice board. Sd/- (AMIT SHUKLA) Sd/- (B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Varanasi; Dated 15/10/2024 KARUNA, sr.ps Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Varanasi 1. The Appellant 2. The Respondent. 3. The CIT(A), Varanasi. 4. CIT 5. DR, ITAT, Varanasi 6. Guard file. //True Copy// "