Centre for Socio Economic Environmenal Studies Vs ITO (ITAT Cochin)
Income Tax Appellate Tribunal (ITAT), Cochin bench, has directed a tax exemption dispute involving the Centre for Socio Economic Environmental Studies, a registered society, back to the assessing officer for a fresh examination. The tribunal’s order, dated January 23, 2025, addresses the denial of exemption under section 11 of the Income Tax Act, 1961, which was based solely on the ground that the trust charged fees for its services.
The case pertains to the assessment year 2017-18. The Centre for Socio Economic Environmental Studies, established with the objective of providing services to the Government of Kerala, had filed its income tax return declaring nil income after claiming exemption under section 11 of the Act. Section 11 provides for income tax exemption to income derived from property held for charitable or religious purposes, subject to certain conditions.
However, the Income Tax Officer (ITO), Exemption Ward, Kochi, completed the assessment under section 143(3) of the Act, determining the total income at Rs. 18,23,020. The ITO denied the exemption claimed under section 11. The basis for this denial, as noted in the ITAT’s order, was the reliance placed on the proviso to section 2(15) of the Act.
