TaxTMI 
TaxTMI 
2016 (1) TMI 236
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.... society was registered on 7th April, 2010 under the Societies Registration Act 1860. For the Financial Year 2009-2010 i.e. Assessment Year 2010-2011, the respondent assessee indicated receipt of a sum of Rs. 1,0,2,22,229/-. It claimed deduction and exemption as per the provisions of the Income Tax Act 1961 on the ground that it is existing solely for educational purposes. Admittedly, the society was not registered under Section 12AA nor did have any approval of the prescribed authority for exemption under Section 10 (23-C)(vi) of the Income Tax Act, 1961. In this background a show cause notice was issued to the society on 14.12.2012 calling upon it as to why the said income be not assessed as purely business income, and consequently the ex....
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....l and the learned Commissioner of Income Tax Appeals held that aggregate annual income means total annual receipt of each separate education institution and not the aggregate of the annual receipts of all the educational institutions run by the respondent society. It accordingly allowed the appeal relying on the judgment in the case of CIT vs. Children Education Society reported in 2014 (264) CTR (Karnataka) 389. The department approached the Tribunal against the said appellate order and the same has been dismissed in relation to both the assessment years on the same ground. This is how the department has come up in appeal before us. Sri Alok Mathur, learned counsel for the appellant contends that the findings recorded by the assessing of....
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.... institutions. A Junior High School is governed by the provisions of the U.P. Basic Education Act, 1972 whereas an Intermediate College duly recognized is governed by the provisions of the U.P. Intermediate Education Act and the regulations framed thereunder. From the impugned judgment it is evident that approval to commence the Intermediate College was granted on 14th July, 2012. Once an Intermediate College comes into existence then the Institution would not be governed by the Basic Education Act which was only upto the Junior High School level. A distinct legal entity, therefore, is created with the recognition of an Intermediate College. The question is as to whether the receipts claimed by the society upto the level of the Junior High ....
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....order of the assessing officer, this factual aspect does not appear to have been dealt with at all. Apart from this, Sri Mathur has further invited the attention of the Court to the decision in the case of Dr. (Smt.) Sushila Gupta Vs. Joint Director of Education, Kanpur Region, Kanpur and others, 2006 (2) AWC 1561 and the decision in the case of Brijesh Tripathi Vs. State of U.P. and others, 2013 (11) ADJ 425 to contend that once an institution is upgraded to an Intermediate College, then the Junior High School loses its identity and it merges with the Intermediate College. This aspect of the law relating to educational institutions including the one presently involved also does not appear to have been examined either by the assessing offi....
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....fact that, as the Assessing Officer in his order recorded that 'taking recognition of Junior and Senior Section in normal administrative process it never connotes that there are two schools.' Further at page 3 of the Ld. CIT (Appeals)'s order, the assessee, in support of his claim of being two schools quoted the use of prefix 'COMBINED' on books of account of Society not Junior/Senior School in different books of accounts of the assessee which clearly indicates that these are merely two sections of a single School which were maintained for administrative ease and better monitoring. 3. Whether the ITAT is justified in law and on facts without appreciating the fact that as the assessee for the first time moved request fo....