2025 (3) TMI 587

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....a manner as to allow the appellant's exemption without proper scrutiny of its adherence to the conditions particularly related to non-discriminatory admission based on merit, thereby conflicting with the principle of "Ignorantia Juris Non Excusat". 2. On facts and circumstance of the case, the Ld. CIT(A) erred in law by failing to appropriately consider the AO's observations relating to the indicators of commercial operations by the appellant, including the hiring of a Manager (Marketing and Admissions), contrary to the spirit of educational institutions under Section 10(23C)(vi), thus conflicting the maxim of "Lex Specialis Derogat Legi Generali". 3. On facts and circumstance of the case, the Ld. CIT(A) misconstrued the implications of the remittance documentation and the nature of expenses claimed, and in particular, the Medical Insurance Premium for the Director, and whether such an interpretation is inconsistent with the intent and purpose of the exemption provision, given that the nexus to the educational function of the institution was not established. 4. On facts and circumstance of the case, the Ld. CIT(A) erred in allowance of the appella....

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....erse and general observations in his assessment order. The AO has contented the appellant has appointed a Manager (Marketing and Admissions) to run the institution on commercial lines while charging huge fees as also no fees remission has been given to any student. These observations are also not in consonance with any of the prescribed condition of Ld CCIT The school is not a registered charitable organisation but a pi registered education society which is to be run by taking fees from the students and as also marketing the excellence of the school in respect of its results etc In view of these observations the AO was not correct in rescinding the exemption is 10(23C)(vi) granting to the assessee. The addition of Rs. 17,42,65,830/- is hereby deleted. Consequently, these grounds of appeal no. 1 to 5 are hereby allowed. 4.2. Ground No.6:- This ground pertains to disallowance to Rs. 8,59,452/- by the Ld. Assessing Officer w.r.t. medical insurance for the medical director of the school. At the outset, the appellant has contended that he was not given proper opportunity to put forth his submission and no show-cause notice was given to him to....

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.... to the Assessing Officer's and therefore, the matters requires to be restored back to the assessing authority. He also quotes New Global Education Society vs., CIT [2022] 143 taxmann.com 276 (SC) that the assessee herein has been found to have violated the terms and conditions of it's sec.10(23) registration and therefore, it is not entitled for sec.11 exemption for the purpose of application of the gross receipts in carrying out alleged charitable activity(ies) to the extent of the specified rate of 85% in very terms. 6. It is at this stage that Mr. Phadke has invited our attention to the paper book pages 18 onwards that the assessee has always been treated as duly eligible for the impugned exemption; be it u/sec.10(23)(c)(vi) or sec.11 of the Act. He has compiled all the relevant details to this effect in pages 96 to 97 right from assessment year 2002-2003 onwards. It emerges that the assessment year before us i.e., A.Y. 2013-2014 is the only instance when a dispute has been arisen regarding the assessee's entitlement to exemption relief forming subject matter of adjudication before us. 6.1. Mr. Phadke further highlights the fact that this assessee undisputedly enjoys sec.....

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.... news agency, association or institution or fund or trust or university or other educational institution or any hospital or any other medical institution, shall be made by the Assessing Officer, without giving effect to the provisions of Section 10 unless- (i) the Assessing Officer has intimated the Central Government or the prescribed authority the contravention of the provisions of clause (21) or clause (228) or clause (234) or clause (238) or sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) or clause (23C) of section 10 as the case may be, by such scientific research association, news agency, association or institution or fund or trust or university or other educational institution or any hospital or other medical institution, where in his view such contravention has taken place, and (ii) the approval granted to such scientific research association or other association or institution or university or other educational institution or hospital or other medical institution has been withdrawn or notification issued in respect of such news agency or fund or trust or institution has been rescinded)". The aforesaid provision makes it c....