Tika Ram Educational Society Vs DCIT/ACIT (ITAT Chandigarh)
In the case concerning Tika Ram Educational Society vs DCIT/ACIT, the assessee appealed against the order of the CIT(A), NFAC, for Assessment Year 2015–16. The society raised multiple grounds, including wrongful reopening of assessment under Section 148, completion of assessment without issuing a mandatory notice under Section 143(2), denial of deductions under Sections 10(23C)(iiiab) and 12A, violation of natural justice due to lack of video conferencing opportunity, and non-compliance with Section 144B and judicial discipline.
The CIT(A) summarized the background of the assessee, noting that it is an educational society formed in 1934 after receiving land and buildings from the government, with additional land grants in subsequent decades. Its institutions have been substantially financed by the government for over 80 years, with staff salaries reimbursed up to 95% in colleges and 75% in schools. The assessee filed its return on 31.03.2017 claiming exemption under Section 10(23C)(iiiab) based on revenue grants amounting to 48.34% of gross receipts and additional land grants. Registration under Section 12AA was granted on 29.09.2018.
The assessment was reopened under Section 148 on the ground that the assessee was not eligible for exemption under Section 10(23C)(iiiab), though the assessee later responded by filing a return and claiming computation under Section 12A. The assessee stated that system glitches prevented timely filing, and the Assessing Officer completed the assessment under Section 144 on the basis that the return was filed at the end of proceedings and without issuing a notice under Section 143(2). The AO also denied deduction under Section 12A in response to the reopened proceedings.
