TaxTMI 
TaxTMI 
2026 (8) TMI 1416
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....in upholding an assessment order u/s 143(3) of the Income Tax Act 1961. 2. Ld. CIT(A) has erred in law and facts of the case in in dismissing the appeal filed by the assessee by confirming the disallowance of exemption w/s 10(23C)(iiiad) of Rs. 9.70.139/-made by the Id AO. 3. The assessee may please be allowed the right to add/DLEETE/modify any of the grounds of appeal at any stage. 3. Brief Facts of the Case 3.1 The assessee is a society/trust registered under the Societies Registration Act and is engaged in imparting education through various educational institutions. For the Assessment Year 2018-19, it filed its return of income declaring Nil income after claiming exemption under section 10(23C)(iiiad) of the Inco....
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....tions prescribed under section 10(23C)(iiiad). Consequently, the exemption claimed under the said provision was denied and the surplus of Rs. 9,70,139/- was brought to tax. Penalty proceedings under section 270A were also initiated separately. 5. Findings of the Learned CIT(A) 5.1 The learned CIT(A) affirmed the action of the Assessing Officer. While adjudicating the appeal, the learned CIT(A) observed that the central controversy was whether the receipts of the educational institutions were required to be considered individually or on an aggregate basis. The appellate authority noted that all the institutions were operating from the same campus with common infrastructure, common management and common ownership. According to the learn....
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....iety itself could not be treated as a separate educational institution. Therefore, according to the learned AR, the receipts of each institution were below the prescribed monetary limit and each institution was independently entitled to exemption under section 10(23C)(iiiad). It was contended that the authorities below had wrongly aggregated the receipts of all the institutions and thereby denied the statutory exemption, which is contrary to the settled legal position and, therefore, the addition deserved to be deleted. 7. Submissions of the Learned DR 7.1 Per contra, the learned Departmental Representative strongly relied upon the orders of the Assessing Officer as well as the learned CIT(A). It was submitted that the authorities bel....
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....ion cannot be interpreted in a manner which permits fragmentation of what is, in substance, one integrated educational institution into several artificial units merely to remain within the prescribed monetary limit. 8.3 In the present case, both the Assessing Officer and the learned CIT(A), after examining the factual position, have concurrently recorded a finding that all the educational activities are being carried on by the same society from a common campus with common infrastructure, common management and common ownership. The assessee has not been able to demonstrate before us that the alleged institutions maintain separate books of account, possess independent administrative or managerial structures or function as distinct educatio....