ST MARYS SCHOOL,UTTAR PRADESH V. ASSISTANT COMMISSIONER OF INCOME TAX, EXEMPTION CIRCLE, GZB

ITA 2503/DEL/2024

AI Insights

The case involves St. Marys School, which is managed by St. Catholic Educational Society, and the taxability of Rs. 34,00,390 deposited in cash over one year in the school's bank account. The school had a separate PAN but the income was inadvertently reported under the PAN of the managing society. The Assessing Officer treated the cash deposits as unexplained and added them as income under section 68 of the Income Tax Act, 1961. The Tribunal's decision to remand the case back to the AO was based on the need to verify if the income had been appropriately reported and taxed under the society's PAN, given the school's financial activities were audited and included in the society's accounts.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298846 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH TIWARI
• Assessee Lawyers: J.P JAIN; CHARTERED ACCOUNTANT
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एस एम सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.2503/िदʟी/2024 (िन.व. 2012-13) ITA No.2503/DEL/2024 (A.Y.2012-13) St. Marys School, Block K, Garima Garden, Pasonda, Loni Road, Uttar Pradesh 201005 PAN: AADTS-7969-K ...... अपीलाथᱮ/Appellant बनाम Vs. Assistant Commissioner of Income Tax, Exemption Circle, CGO Complex, Hapur Chungi, Ghaziabad, Uttar Pradesh 201002 ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : Shri J.P Jain, Chartered Accountant ŮितवादीȪारा/Respondent by : Shri Rajesh Tiwari, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 11/12/2024 घोषणा कᳱ ितिथ/ Date of pronouncement : : 28/02/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 21.03.2024, for assessment year 2012-13. 2. Shri J.P Jain, appearing on behalf of the assessee submitted that St. Mary School is run by St. Catholic Educational Society. Although, the society had obtained a separate PAN for the school i.e. AADTS-7969-K, while filing return of income inadvertently the receipts of school were offered to tax under the PAN of the society i.e. AAAJS-3432-N. It is not a case where the income of school has not been 2 ITA No. 2503/Del/2024 (AY 2012-13) offered to tax at all. It is a case where the income of school has been offered to tax under PAN of the Society who is running the school. These facts were brought to notice of the Assessing Officer (AO) vide letter dated 16.12.2013. The society is filing regular return of income and its books are subject to audit. The AO without appreciating facts of the case made addition of entire cash credits in bank account of school as unexplained cash credit u/s. 68 of the Income Tax Act, 1961(hereinafter referred to as 'the Act') The said receipts are, in the nature of school fee received from school children. 3. Per contra, Shri Rajesh Tiwari representing the department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. 4. Both sides heard, orders of the authorities below examined. The solitary issue raised in appeal is with regard to taxability of Rs.34,00,390/- deposited in cash over the span of one year in bank account of the assessee. The contention of the assessee is that the aforesaid receipts are school fees that have been offered to tax in the return of income filed by the society under whose aegis the school is running. Although, the school was having a separate PAN but the income of school has been offered to tax under the PAN of Society. It is further contended that the income from the school is reflected in the accounts of the society and the said accounts are subject to audit. The assessee has reiterated contentions raised before the authorities below. It is a well settled law that same income cannot be taxed twice. The contention of the assessee is that cash deposits in the bank account have been offered to tax under the PAN of Society, hence, the same amount cannot be taxed again the hands of school. Considering entire facts of the case, I deem it appropriate to restore this issue back to the AO for examination of following facts: 3 ITA No. 2503/Del/2024 (AY 2012-13) (i) Whether income of the school has been reflected in audited accounts of the society? (ii) Whether cash deposits in bank account of the school have been offered to tax under the PAN of Society? If the answer to both above questions is in affirmative, then addition of Rs. 34,00,390/- in the hands of present assessee is unwarranted. 5. In the result, appeal of the assessee is allowed for statistical purpose in the terms aforesaid. Order pronounced in the open court on Friday the 28th day February, 2025. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 28.02.2025 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "