Case Law Details
Sharda Mandir High School Vs CIT (ITAT Mumbai)
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has ruled that the unregistered Association of Persons formed by agreement merging two charitable Trusts eligible for exemption under Income Tax.
The appellant Sharda Mandir High School which is an Association of person (AOP), against order passed by The Commissioner Of Income Tax (Exemption), Mumbai for assessment year 2018 – 19 u/s 10 (23C) (vi) of The Income Tax Acton 30 September 2019. Per that order, application made by the assessee on 22/9/2018 seeking exemption under that Section was rejected.
The assessee, Sharda Mandir High School, filed an application on 30/9/2018 seeking approval for claiming exemption u/s 10 (23C) (vi) of The Act for assessment year 2018 – 19. It was formed as an Association of persons by way of an agreement dated 23/11/2016 comprising two members namely (1) Sharda Sikhshna Seva Samiti and (2) Lodha Charitable Trust.
Sharda Shikshan Seva Samiti was running a Marathi medium school and a junior college in the name of Sharda Mandir high school for 36 years in Mumbai. It had a piece of land admeasuring 1294 m2 at Girgaon division Mumbai As the need of an English medium school was found, it entered into a management agreement on 12 August 2014 with Lodha Charitable Trust for an initial period of 20 years to set up an English medium school on the premises owned by Sharda Shikshan Seva Samiti.
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