DCIT Vs Maharana Pratap Education Centre (ITAT Delhi)
ITAT Delhi held that rebate and concession in fees to poor student claimed as donation is in accordance with object of the trust and hence deletion of disallowance of donation by CIT(A) is justifiable. Accordingly, appeal of revenue dismissed.
Facts- The assessee is an Educational Institution filed his return of income for AY 2013-14 declaring nill income. The case was selected for scrutiny; assessment was assessment was completed on 30.03.2016. The Assessing Officer (AO) while passing the assessment order treated the assessee as Association of Person (AOP) besides other additions made various additions/ disallowances. CIT(A) deleted the additions/ disallowances. Being aggrieved, revenue has preferred the present appeal.
Conclusion- We find that AO disallow the claim of donation simply by taking view that assessee has not explained or justification of donation. Assessing Officer has not recorded that any reply or books of account was furnished or not. We find that Ld. CIT(A) while allowing the relief to the assessee clearly held that assessee has given donation in accordance with its object. We further find that claim of assessee is actually based on rebate given to the student having poor financial background. Thus, we do not find any reason to interfere with the order of the CIT(A).
