Section 10(23C)(iiiad) Shields School – AO Cannot Invoke Section 11(5)

ABM Senior Secondary Public School Society Vs ITO (Exemptions) (ITAT Chandigarh) Assessee, a registered society, runs a school affiliated to HP Board, imparting education up to 12th standard. Gross receipts during AY 2015-16 did not exceed ₹1 crore. AO noticed assessee had advanced ₹59.50 lakh as rent advance to specified persons & held it in violation of Section 11(5). Addition of ₹59.50 lakh was made by Faceless Assessment Unit. CIT(A) deleted ₹20.64 lakh but sustained ₹38.86 lakh addition. Tribunal’s Observations Assessee’s receipts were below ₹1 crore; therefore, it wa...