Case Law Details
Young Women’s Christian Association of Delhi Vs ITO (ITAT Delhi)
ITAT Delhi held that Article 265 of the Constitution mandates that no tax shall be levied or collected except by authority of law. If tax has been paid in excess, same has to be refunded to the assessee.
Facts- The assessee is a society registered under Societies Registration Act, 1860. It is registered under section 12A of the Income Tax Act, 1961 and claims exemption u/s. 11 and 12 of the Act. In the assessment order framed by the AO on 18.03.2015 under section 143(3) of the Act, the Ld. AO gave the finding that the assessee’s income from running of non recognized courses by Women Training Institute computed by him at Rs. 99,30,938/- is not education within the meaning of section 2(15) of the Act and added the same to the income of the assessee.
CIT(A) deleted the impugned addition and directed AO to grant full exemption under section 11 along with consequential benefits. However, in view of decision of Hon’ble Supreme Court in CIT vs. Shelly Products & Another 261 ITR 367 (SC), the Ld. CIT(A) held that since the assessee paid tax on the impugned income of Rs. 99,97,872/- declared in the return, tax paid thereon will not be refunded even though the said income is eligible for exemption under section 11 of the Act.
Being aggrieved, the present appeal is filed.
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