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TMI Blog2025 (1) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act as no evidence has been brought on record that it was not existing solely for educational purposes. Hence, the order of the Ld. CIT(A) is set aside, ground nos. 1 2 are allowed and the deposits in bank account are deemed to be out of the fees received from the students and the AO is directed to delete the addition made to the income of the assessee. Decided in favour of assessee. - Sri Duvvuru RL Reddy, Vice President (KZ) And Sri Rakesh Mishra, Accountant Member For the Assessee : Anil Agarwala, AR. For the Department : Kausik Ray, JCIT ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as the Ld. CIT(A) ] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as the Act ) for AY 2017-18 dated 21.04.2023, which has been passed against the assessment order u/s 144 of the Act, dated 05.07.2019. 2. The assessee is in appeal before this Tribunal raising the following grounds of appeal: 1. For that the Learned Commissioner of Income Tax (Appeals) erred in law as well as on facts in upholding the order of the assessing officer deter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant is Dismissed. 7.5 In Ground No. 4 of the appellant, it is argued that the impugned order of assessment is not tenable in law in as much as it is done ignoring the vital facts that the appellant institution is exempt from income tax in terms of section 10(23C)(iiiad). In this regard, it is pertinent to note that the appellant has not filed any evidence for registration of either the appellant or the other assessee viz. Bharali Education Foundation (BEF) u/s 10(23C) of the IT Act, 1961 and simply stated that the said trust is exempt from tax. Be that as it may, as already held while deciding Ground No. 3 above, the appellant having a separate PAN is held to be a separate taxable legal entity. Hence, the appellant cannot take shelter of the alibi that it is a part of the Bharali Education Foundation (BEF) and hence exempt from tax as per the provisions of S. 10(23C)(iiiad). 7.6 In Ground No. 5, the appellant has pleaded that the learned Assessing Officer erred in law as well as in fact by treating the entire cash deposit during the demonetization period as income completely ignoring the Audited statement of accounts submitted before him. The contention of the appellant is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Education bearing PAN AAAJN1020F having three Bank Accounts maintained under (1) State Bank of India, Maloibari branch (2) Assam Gramin Vikash Bank, Khetri Branch (3) Central Bank of India, Khetri branch during the financial year 2016-17 relevant to the A Y 2017-18. 2. Shri R C Bharali, Secretary of above institution contended that assessee institution is a unit under Bharali Education Foundation which is a Registered trust and its income is exempted however, trust deed produced by Shri Bharali do not exhibit the name, status as well as objectives of assessee institution. 3. It has been observed in course of proceedings neither of above institutions is registered by the Commissioner of Income-tax under section 12AA/A for enjoying benefit of exemption as per provision of Income-tax Act nor got its books of accounts audited as per requirement of Act. 4. As per extract of bank statement obtained from SBI, Maloibari brach (Current A/C No. 36119845291) shown that assessee institution had made cash deposit of Rs. 12 97,000/- in bank during demonetization period. 5. The assessee contended that above cash deposits during demonetization period were receipt by way of advance fees from stu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt AY 2018-19 was filed on 17.11.2018. The Ld. DR had no objection to the source of deposit but relied upon the order of the Ld. CIT(A) in support of the claim that the assessee was a separate legal entity than the trust and hence separately assessable. 4.3. We have considered the submissions made. The provisions of Section 10(23C)(iiiad) of the Act for the impugned A.Y. are as under: Any university or other educational institution existing solely for educational purposes and not for purposes of profit if the aggregate annual receipts of such university or educational institution do not exceed the amount of annual receipts as may be prescribed. 4.4. The assessee submitted that it is an educational institution and the copy of Trust Deed which was filed before the Ld. AO as well as Ld. CIT(A), which has also been filed before us and in which the object of the Trust is to set up formal educational institution as well as to run and operate them. In the paper book filed at page 14 which was also filed before the Ld. AO as well as Ld. CIT(A) being the auditor s report, it is stated that National Institute for Teacher Education is a unit of Bharali Education Foundation (BEF). In the state ..... X X X X Extracts X X X X X X X X Extracts X X X X
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