TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1690
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....ining to Assessment Year 2014-15. 2. Brief facts of the case are that assessee is a trust incorporated through trust deed dated 03.09.2008 having main object is to establish and run a school. An Application for registration u/s 12A was filed before CIT, Faridabad who rejected the same for the reason that school run by the assessee trust being commercial in nature and thus it is a non-charitable activity. Against the said order an appeal was filed before the ITAT, New Delhi wherein the matter was referred back to the CIT, Faridabad for deciding it a fresh and the same was pending when the assessment proceedings for the year under appeal were taken up by the AO. Therefore, the AO proceeded to complete the assessment as if no registration is ....
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....as Royalty charges. 4. (a) Whether the Order of the Ld. CIT(A) is erroneous and not tenable in law and on facts. (b) The appellant craves leave to add, amend any/all the grounds of appeal before or during the course of hearing of the appeal. 5. Ground of appeal No.1 raised by the Revenue is with respect to the deletion of disallowance of INR 14,79,28,500/- by Ld. CIT(A) which was made by AO towards the rent paid by the assessee. 6. Before us, Ld.CIT DR for the Revenue submits that no evidence was filed with respect to the payment of rent as copy of Rent Deed which is not registered. Moreover, the assessee was not engaged in charitable activities of imparting education and running the school on commercial basis where it has taken affil....
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....law that rent agreement has to be registered. The appellant has made the payments through banking channel after deduction of TDS as per the applicable rate. The rent has been paid wholly and exclusively for the purpose of its main activities i.e., educational activities from which the appellant has earned substantial income and which have been offered for taxation. The payee has shown the rental as their income. The assessee has made a supplementary submission stating that it is neither registered u/s 11/12 of the Act nor it is claiming any benefit u/s 11/12 of the Act. The assessee company is filing its return like a normal business entity in the status of AOP. Further, from the facts of the case it has been gathered that the rent paid i....
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.... directed to be deleted. Accordingly, this ground of appeal raised by the appellant is allowed." 9. Before us, Ld.CIT DR for the Revenue simply reiterated what was observed by the AO while making disallowance. It is seen that the AO has not doubted the reasonableness of the amount paid and solely for the reason that the assessee was doing charitable activity thus payment of rent to this magnitude was doubted. The ld. CIT DR filed to controvert the findings given by the Ld.CIT(A) who deleted the disallowance on various counts. It is further seen that Ld.CIT(A) observed that the rent was paid in preceding assessment years, where the same was accepted as revenue expenditure by the Revenue in the orders passed u/s 143(3) of the Act, copies of ....
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....xpenses. He therefore, prayed that Ld. CIT(A) has rightly deleted the additions made by the AO and requested for the confirmation of the said orders. 13. Heard both the parties and perused the material available on record. From the perusal of the assessment order, it is seen that assessee failed to file any details with respect to these expenses and the reason stated was due to winter vacations staff was not available. Before ld. CIT(A) assessee had filed the bills and other details like TDS etc. made on such payments and the nature of services for which the payments were made. As the same were not produced before the AO nor was any opportunity provided by ld. CIT(A) to the AO for his comments before reaching to the conclusion about the ge....
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....that disallowance so deleted by Ld.CIT(A) deserves to be restored. 16. On the other hand, Ld.AR for the assessee supports the order of Ld.CIT(A) and submits that assessee is not registered u/s 12A of the Act and file the return of income as normal business entity in the status of AOP. He submits that Shri Anjani Kumar Goenka is the owner of trade mark "G.D.Goenka" and granted license rights to M/s G.D. Goenka Pvt. Ltd. for which an agreement was executed between the parties, copy of the same was submitted before Ld. CIT(A). The assessee also submitted MOU with M/s G.D. Goenka Pvt. Ltd. for use of the brand-name i.e. "G.D. Goenka". He, therefore, prayed for the confirmation of the order of Ld.CIT(A) who after considering these facts, has de....