ST MARKS SCHOOL SOCIETY,JHANSI V. CIT, EXEMPTIONS

ITA 34/LKW/2024

AI Insights

The case involves St. Marks School Society, which appealed against the order of the Commissioner of Income Tax (Exemptions), Lucknow, who had rejected their application for registration under section 10(23C)(vi) of the Income Tax Act, 1961. Initially, the CIT (Exemptions) rejected the application, but the ITAT Agra bench recognized the society's entitlement to registration under the same section, leading to a conditional approval. The main contention in the current appeal was the incorrect application of sections 10(23C)(vi) and 11 & 12 by the CIT (Exemptions). The ITAT found merit in the assessee's argument and directed a re-evaluation of the case in accordance with the specific provisions applicable to the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398350 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.K. AGARWAL
• Keywords: Set aside; Opportunity of being heard
• Section: 11; 12A; 12

Judgement Text

"I.T.A. No.34/Lkw/2024 Assessment Year:2018-19 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘A’, LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER AND SHRI SUBHASH MALGURIA, JUDICIAL MEMBER I.T.A. No.34/Lkw/2024 Assessment year:2018-19 St. Marks School Society, 7 Karrippa Marg Cantt, Jhansi. PAN:AAJAS7100B Vs. CIT (Exemptions) Lucknow. (Appellant) (Respondent) O R D E R PER SUBHASH MALGURIA:J.M. This appeal vide I.T.A. No.34/Lkw/2024 has been filed by the assessee for assessment year 2018-19 against impugned order dated 29/11/2023 (DIN & Order No.ITBA/EXM/F/EXM41/2023-24/1058329611(1) of Commissioner of Income Tax [“CIT” for short]. 2. The facts of the case, in brief, are that the assessee had filed an application on 30/09/2018 for registration u/s 10(23C)(vi) of the Income Tax Act, 1961 (“the Act” for short) with the Commissioner of Income Tax Appellant by None Respondent by Shri R. K. Agarwal, CIT (D.R.) I.T.A. No.34/Lkw/2024 Assessment Year:2018-19 2 (Exemptions), Lucknow. The Commissioner of Income Tax (Exemptions), Lucknow, vide order dated 30/09/2019 rejected the registration sought by the assessee. Aggrieved by the order of the Commissioner of Income Tax (Exemptions), Lucknow, the assessee filed an appeal before the Income Tax Appellate Tribunal, Agra. The ITAT, vide dated 17/03/2020 observed that assessee was existing for solely educational purposes and not for the purpose of profit, hence the assessee is entitled to recognition under section 10(23C)(vi) of the Act. Accordingly, complying the judgment of ITAT, Agra, the assessee society was granted registration with the condition that provisions of sections 11 & 12 shall apply in the case of the assessee from the assessment year 2019-20. Being aggrieved with the order passed by learned CIT (Exemptions), Lucknow, the assessee has filed this appeal before the Income Tax Appellate Tribunal. 3. At the time of hearing, there was no representation from assessee’s side. In absence of any representation from assessee’s side, the learned CIT, (D.R.) was heard and the materials available on record were perused. 4. We have heard learned CIT (D.R.) and perused the materials available on record. The objection of the assessee before us is that the learned CIT (Exemptions) has incorrectly acknowledged both section 20(23C)(vi) and the provisions of section 11 and 12 of the Act. The provisions of section 11 and 12 are applicable only to those entities registered under section 12A of the Act whereas the assessee vide its application dated 30/09/2018 had requested for registration u/s 20(23C)(vi) of the Act. The Agra Bench of the Tribunal has observed that the assessee is entitled to recognition under section 20(23C)(vi) of the Act. In view of the foregoing, the order dated 29/11/2023 passed by the learned CIT (Exemptions), Lucknow is set aside I.T.A. No.34/Lkw/2024 Assessment Year:2018-19 3 and restored back to his file with the direction to pass order afresh keeping in view the provisions of section 20(23C)(vi) and the direction of the Agra Bench of the Tribunal vide order dated 17/03/2020, after providing reasonable opportunity of being heard to assessee. 5. In the result, the appeal of the assessee stands allowed for statistical purposes. (Order pronounced in the open court on 05/06/2025) Sd/. Sd/. (ANADEE NATH MISSHRA) (SUBHASH MALGURIA) Accountant Member Judicial Member Dated:05/06/2025 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., Lucknow "