Case Law Details
PCIT Vs Rashtreeya Sikshana Samithi Trust (Karnataka High Court)
Karnataka High Court held that AO based on incorrect assumption treated the money collected by the trust as capitation fee under the KEI (Prohibition of Capitation Fee) Act. In absence of any violation of KEI (Prohibition of Capitation Fee) Act, exemption u/s 11 and 12 of the Income Tax Act duly available.
Facts- The assessee is a charitable trust registered u/s. 12A of the Income Tax Act, 1961. It has obtained approval u/s. 11 and 12 of the Act. For A.Y.2012-13, assessee filed returns of income declaring income as nil.
The case was selected for scrutiny and notices u/s. 142(1) and 143(2) were issued. Assessee filed revised returns. The difference between two returns was claimed as corpus donations and according to the assessee, the Trust was exempted in original returns and had disclosed the income under the head ‘other income’ in revised returns. Subsequently, the Additional Commissioner of Income Tax, Exemptions Range, Bengaluru, took up the case for scrutiny assessment and subsequently, the AO passed the assessment order dated 30.03.2015 holding that income from other source as income by the Trust.
The CIT(A) confirmed AO’s order. The ITAT, by impugned order has reversed the order passed by the AO and held that assessee is entitled for exemption. Being aggrieved, revenue has preferred the present writ.
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