DCIT Vs Vaishnav Polytechnic College Govn by VSK Market Tech Educational Society (ITAT Indore)
Material Facts: The assessee, an educational institution run by Shri Vaishnav Sahayak Kapda Market Technical Education Society, filed its return for AY 2014-15 declaring a loss of ₹1,28,86,747. During the year, it reported gross receipts of ₹5,98,24,898 and claimed expenditure of ₹7,27,11,645 towards application of funds for educational purposes. Since the return reflected a loss, no exemption under Section 10(23C)(iiiab) was claimed. The return was processed under Section 143(1), where income was computed at ₹5,98,24,898 by denying the expenditure claimed. Rectification applications under Section 154 were rejected on the ground that exemption under Section 10 had not been claimed in the return and details of the approving authority had not been furnished. The CIT(A) held that the assessee was eligible for exemption under Section 10(23C)(iiiab) and alternatively allowed expenditure under Section 57(iii). The Revenue appealed before the Tribunal.
Procedural History: The appeal before the ITAT arose from the order of the CIT(A), Indore dated 15.02.2018, which had reversed the CPC’s rectification order under Section 154 dated 02.06.2016. The Revenue challenged the grant of exemption under Section 10(23C)(iiiab) and the alternative allowance of expenditure under Section 57(iii).
