TaxTMI 
TaxTMI 
2026 (7) TMI 1307
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.... are directed against orders dated 29.09.2025 and 30.09.2025 of the Additional/Joint Commissioner of Income Tax (Appeals), National Faceless Appeal Centre ('NFAC'), Delhi ['Addl. CIT(A)'] passed under section 250 of the Income Tax Act, 1961 ('Act'), respectively. 3. Vide two effective grounds of appeal in each case, the assessee has challenged the taxability of gross receipts as income under section 143(1) of the Act and denial of netting of expenses debited in Income & Expenditure accounts of these years. ITA No. 678/RPR/2025: 4. This appeal is taken as a lead case. The relevant facts giving rise to this appeal are that the assessee, a registered society under Societies Registration Act, 1860, runs a school. It does not have any r....
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....nvited to the Jurisdictional decision in the case of Wipro Ltd reported in 140 taxmann.com 223 (SC)(2022), wherein the court has held that, in case of claiming any benefit under the provisions of the Act, the twin conditions of filing the declaration (in the present case Form 10B) and that too before the due date for filing RoI is mandatory. The relevant portion of the order is given as under: "The High Court has committed a grave error in observing and holding that the requirement of furnishing a declaration is to be filed is not mandatory but is directory. The same is erroneous and contrary to the unambiguous language contained in section 10B(8). It is held that for claiming the benefit under section 10B(8), the twin conditions o....
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....rn (ii) an incorrect claim, if such Incorrect claim is apparent from any information in the return; 7.12. In the present case, the appellant has made incorrect claim in the return of income by availing exemption u/s. 11 without, fun exemption u/s. 11, without furnishing Form 10B as per section 12A(1)(5), within the due date of filing RoI. Hence the ground of appellant on the validity of jurisdiction u/s. 143(1) is dismissed. 7.13. Further, the appellant has relied on various judicial pronouncements regarding the allowability of expenses claimed in the return of income as against the Gross Receipts and bring to tax only the net receipts. In the present case, as per the return of income filed for AY. 2017-18, the as....
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....ed Representative ('AR') of the assessee, at the outset, submitted the brief facts of the case and contended that the assessee had wrongly filed its ITR in Form ITR-7 instead of Form ITR-5. The ITR-7 is the income tax return for persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) of the Act. This ITR-7 is specifically for entities that derive income from property held under charitable or religious trusts, scientific research institutions, political parties, universities, and colleges. Further, he submitted that ITR-5 is Income Tax Return for entities other than individuals, Hindu Undivided Families (HUFs), and companies. The ITR-5 is for entities such as Partnership Firms, Limited L....
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....the school by the assessee and thus, the expenditure was allowable as it was not a case of application of income out of donations. The said expenditure was revenue in nature and incurred for running school out of gross tuition/school fee, etc. He therefore, prayed for relief by allowing the netting of expenditure against the gross receipts. He placed reliance on the decision of ITAT, Delhi in the case of New Surya Public School (in ITA No. 5082/Del/2025 dated 24.12.2025) reported in 2026 (1) TMI 603, ITAT Delhi, Sankulp Welfare Society 303 ITR 64 and National Horticulture Board 176 taxmaan167. 7. On the other hand, Shri Piyush Tripathi, Ld. Sr. DR, contended that there was no prima facie mistake in Ld. AO-CPC's order; hence, the assessee....