2025 (10) TMI 141

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....essee in its grounds of appeal is that the learned NFAC/CIT(A) erred in upholding the assessment framed under section 144 of the Act and in confirming the addition of Rs. 30,45,214/-. The ld. further erred in not adjudicating the additional ground requesting that the issue be set aside to the file of the AO for fresh adjudication. 3. The relevant facts are as follows. The assessee was established on 2nd June 2017 as a charitable trust with the objective of imparting education. The trust runs a nursing college at Uttarahalli, Bangalore, in the name and style of M/s Sri Sharda Nursing College. For the relevant assessment year, the assessee was neither registered under section 12AA/12AB nor under section 10(23C) of the Act. 4. For the ye....

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....5,214/- as against the NIL income declared by the assessee. 8. The aggrieved assessee filed an appeal before the learned NFAC/CIT(A). 9. Before the learned CIT(A), the assessee made detailed submissions. It challenged the validity of the assessment framed under section 144 of the Act as violating the principles of natural justice. It also challenged the disallowance of expenditure claimed towards its objects under section 69C of the Act. It further contended that the assessee should have been treated as an AOP and that income should have been computed accordingly. However, the learned CIT(A) dismissed all the arguments and grounds raised by the assessee. 10. Being aggrieved by the order of the learned CIT(A), the assessee has filed....

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....al institution, namely a nursing college. It exists solely for educational purposes and not for profit. Its receipts from the educational institution do not exceed Rs. 5 crores. Therefore, the assessee is covered by section 10(23C)(iiiad) of the Act. 12. On the other hand, the learned DR vehemently supported the order of the authorities below. 13. We have heard the rival contentions of both the parties and perused the materials available on record. From the preceding discussion, we note that the assessee is a newly established educational trust running a nursing college. For the year in question, it disclosed receipts about Rs. 22.23 lakh and expenditure of Rs. 30.45 lakh, resulting in a deficit. It was not registered under sections 1....

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.... procedural lapse and cannot defeat a substantive exemption if otherwise available. We are also conscious to the facts that whether the institution is "solely" for education, the nature of its activities, fee structure, use of funds, and the quantum of annual receipts are all verifiable matters. The Authorities below has not got the opportunity to examine these facts. 13.3 We also note the assessment was framed under section 144 of the Act due to non-compliance. The assessee has explained that the managing trustee is a senior citizen and that a tax-practitioner's inadvertent error led to the wrong form being used. A detailed paper- book has now been filed. In the totality of circumstances, and to uphold natural justice, one more opportun....