Burgess English Senior Secondary School Vs ITO (ITAT Raipur)
The Raipur Bench of the ITAT allowed the appeal filed by Burgess English Senior Secondary School, Raipur against the order of the CIT(A), NFAC, Delhi for AY 2017-18. The appeal arose from an assessment under section 144 of the Income Tax Act, 1961 dated 14.12.2019. The assessee had not filed an ITR for AY 2017-18. Following information regarding cash deposits during the demonetization period, the ITO issued notice under section 142(1) and subsequently other notices. During assessment proceedings, the assessee submitted that it was a school forming part of the Chhattisgarh Diocese Board of Education, Raipur, and that the amounts deposited in the relevant bank account represented fees directly deposited by students. The assessee also contended that its income formed part of the income of the registered society, which had a separate PAN and operated multiple schools.
The AO rejected the claim for want of evidence and made an addition of Rs.64,31,628, representing the surplus shown in the Income and Expenditure Account submitted by the assessee. The CIT(A) sustained the addition, treating the school as an independent entity because it had PAN No. AAABB0788Q, whereas the Chhattisgarh Diocese Board of Education, Raipur had PAN No. AACAC1876F. Before the Tribunal, the assessee relied upon the audited Balance Sheet, Receipt and Payment Account and Income and Expenditure Account of the society and submitted that the entire income had already been reflected by the society in its ITR.
